Sell and Rent Back: The Legal Process
The legal process of sell
and rent back starts straight after the homeowner accepts the
offer. The homeowner must then appoint a solicitor to act on his/her
behalf and once appointed the solicitor will start the process of
gathering the documentation necessary to transfer the property ownership
to the buyer. This process is known as conveyance. The fees for this
service vary between £250 and £700 and are always paid
by the investor provided they do not exceed £500.
In a conventional sale the homeowner would need HIP
(Home Information Pack) which is a set of documents that contains
information about the property such as an energy performance certificate,
a sale statement, evidence of property ownership and standard searches.
These are the main items but, depending on the type of property, the
list can be quite extensive. The cost of this set of documents is
usually between £300 and £400 but in exceptional cases
can be much more. The good news is that when opting for a sell and
rent back scheme an HIP is not required. This means no cost for the
homeowner selling his/her house.
Both the homeowner and the buyer will have solicitors
who will communicate to draft the necessary contracts and other supporting
documentation. The homeowner's solicitor then checks that the buyer's
funds are available and are ready to be transferred to the seller,
following which an exchange of contracts takes place which seals the
agreement. At this stage a date is fixed for completion.
A tenant agreement is drawn up and sent to the seller
to be read and agreed and then signed in the presence of an independent
witness who must not be a relative of the tenant.
Completion is normally set for a date within ten days
of exchange of contracts but is timed to be convenient to all parties
and to suit their needs. At this time the transfer of money takes
place for the purchase.
The legal process for sell and rent back is a simple
and straightforward process if the seller's solicitor is experienced
in this scheme. Beese Properties will be able to recommend a friendly
and efficient solicitor who will guarantee the speed of the process
to meet the seller's requirements.
