Buy Back

We normally set the option to run between 2 and 5 years, but you may have different requirements. The 2 year lower time limit is so that we can get a competitive Mortgage that may have a 2 year early redemption penalty.

A typical option would have a repurchase price on the property of 15% above the price that we pay.

Consider as an example a property worth £140,000.

You decide to sell us your house for £100,000. In this example this is enough money to clear your mortgage and debts.

Suppose that you exercise your option after 5 years and that house prices have gone up on average by 5% per year.

Your property now has a market value of £175,000, but you still have the right to buy the property at £115,000.

Although in theory you lost £40,000 of equity when you sold below market value, in this case when you buy your property back, you have recovered your lost equity and acquired an additional £20,000.

If the property market crashes, then you are not obliged to buy the property back.

Remember the cheaper you sell the property to us, the less rent that you will pay and the cheaper your property will be to buy back.