A tenant is asking me about a rent to buy scheme ... he tells me that basically we agree a price (example - current market vale plus 20%) for me to sell the property to him at an agreed time in the future ... say 15 years.
Advantages to me ; He will pay a higher rent, he will manage all maintenance
Disadvantages as I see them ; He gets an interest free low value property - I am still liable for the full amount and all of the interest, I still have to wait a long time to realise any benefit plus I will probably still have a loan amount outstanding
Can anyone advise me on the feasibility of such an arrangement ?
Apparently there are companies who offer this service or you can get your solicitors to work together on it ...
Many thanks, B.
Advantages to me ; He will pay a higher rent, he will manage all maintenance
Disadvantages as I see them ; He gets an interest free low value property - I am still liable for the full amount and all of the interest, I still have to wait a long time to realise any benefit plus I will probably still have a loan amount outstanding
Can anyone advise me on the feasibility of such an arrangement ?
Apparently there are companies who offer this service or you can get your solicitors to work together on it ...
Many thanks, B.