HELLLLLLLPPPP!
After very slow market - we decided to see if there was interest in rent-to-buy as a way of getting a decent price & return on our IP in a country mining town.
Got a big response -- over 100 asking for information pack. We have one serious buyer - who is keen to go ahead.
We are at the point now of getting a solicitor to draft up contract of sale or option to buy....
Advice needed on how to protect ourselves as owner/landlord. Ideas so far:
Tenant/Purchaser to pay all outgoings: rates, consumer accounts, building insurance, and any general or capital maintenance items or improvements.
How do we set up an exit strategy?? i.e.- one where we can't lose & buyer has everything to gain by going ahead with purchase.
What is a fair exit strategy for the purchaser??
Payment structure set up for purchaser to pay 20% deposit within 3 years and then obtain home loan.
Question - what happens if valuation doesn't stack up in 3 yrs time? i.e.- in ours, buyer would need to borrow 196K (in 3 yrs) on a property currently Val'd around 220K. In effect they are gambling (via a higher purchase price) that Capital Val improves in 3 yrs -- what if it doesn't?
Has anyone sold like this before??? Would be ever so grateful if we could read contract documents or agreement documents ppl have used in the past.
Success Stories???? Nightmare stories??? Please share any info you can - we have about 2 week window of opportunity - we feel it could be a really good outcome for us - if it works smoothly!
After very slow market - we decided to see if there was interest in rent-to-buy as a way of getting a decent price & return on our IP in a country mining town.
Got a big response -- over 100 asking for information pack. We have one serious buyer - who is keen to go ahead.
We are at the point now of getting a solicitor to draft up contract of sale or option to buy....
Advice needed on how to protect ourselves as owner/landlord. Ideas so far:
Tenant/Purchaser to pay all outgoings: rates, consumer accounts, building insurance, and any general or capital maintenance items or improvements.
How do we set up an exit strategy?? i.e.- one where we can't lose & buyer has everything to gain by going ahead with purchase.
What is a fair exit strategy for the purchaser??
Payment structure set up for purchaser to pay 20% deposit within 3 years and then obtain home loan.
Question - what happens if valuation doesn't stack up in 3 yrs time? i.e.- in ours, buyer would need to borrow 196K (in 3 yrs) on a property currently Val'd around 220K. In effect they are gambling (via a higher purchase price) that Capital Val improves in 3 yrs -- what if it doesn't?
Has anyone sold like this before??? Would be ever so grateful if we could read contract documents or agreement documents ppl have used in the past.
Success Stories???? Nightmare stories??? Please share any info you can - we have about 2 week window of opportunity - we feel it could be a really good outcome for us - if it works smoothly!