Frequently Asked Questions  

How it works I FAQ I Enquire

Q: What is equity?


A:
Your home was probably bought through a bank or building society. This loan was secured on your property by a mortgage. As time passes you continued to pay your mortgage and more and more of the loan was repaid. In the meantime the market value of your property was probably increasing. The difference between the money you owe the mortgage lender and the current value of your property is the equity.

Q: If my home is repossessed will the mortgage lender pay me the equity I already have?


A:
Until your home is sold by the mortgage lender you are still liable for on-going costs on the property such as legal fees and estate agent fees. The mortgage lender is only interested in recovering what is owed to them so if your home is sold at a public auction it is likely to be sold at a fraction of the market value. If this happens you not only lose all the equity in your property you will also be responsible for paying any shortfall to the mortgage lender.

Q: Do I have to see anybody from Home Solutions – can you just post me the information?


A:
You do not have to see anybody until you are happy to proceed. After initial contact from yourselves we will then arrange a visit to discuss your individual circumstances and how we can help. If you wish to proceed you will receive an offer in writing after an independent valuation on your property. We aim to keep all dealings clear and simple but to ensure you understand all the information fully we would advise that you discuss all arrangements with your family and an independent adviser of your choice.

Q: Why Home Solutions and not another company?


A:
We have been in the property industry for over 20 years and are experienced landlords. We are ethical, honest and caring in our approach and are interested in the long-term rather than a quick fix. We want you to be better off emotionally and financially by using our services.

Q: How much will I get for my house?


A:
As a guide, you will not receive above 80% of the market price of the property, as agreed by an independent valuation and the sale will only be completed when you are entirely satisfied with the offer we make you. It is likely that during a five year renting period the property will increase in value and when you re-purchase you will benefit from the equity.

Q: Do I have to pay any fees?


A:
No, we cover all the purchase costs including legal fees and valuation fees.

Q: What if I change my mind?


A:
You are free to change your mind, and even when you sign, you have a seven-day cooling off period. After the valuation result is known, we confirm the figures to you. Solicitors will already be working on the case so we would ask you to respect this. If you have second thoughts, discuss it with us. If you decide not to go ahead you should tell us quickly. You are free to pull out at any time up to exchange of contracts.

Q: What type of properties do Home Solutions buy?


A:
We will consider all properties from owner-occupied to investor / landlord properties.

Q: Which areas do Home Solutions cover?


A:
We are based and live in the North East of England and offer our services to people living in the North East.

Q: Who will my landlord be?


A:
Your landlord will be Home Solutions. We are members of the National Landlords Association and you will be issued the Assured Shorthold Tenancy (AST) agreement which protects you from eviction.

Q: Can I stay in the house for the rest of my life?


A:
Neither Home Solutions nor anyone else can promise this for sure. During the agreed lease option period the expectation is that you will stay. After that time the expectation is that you will buy the property back from Home Solutions. If you decide not to take up the option and buy the property you would revert to a becoming a tenant on an Assured Shorthold Tenancy without the right to buy back at a future date. You would also forfeit your 3% down payment.

Q: What sort of tenant will I be?


A:
You will be a tenant of Home Solutions under an Assured Shorthold Tenancy (AST), which is a legal requirement. This agreement is periodic after the first 6 months, which means continuous. You are free to leave with one month's notice. It is Home Solutions who are not free to chuck you out! If you, for some reason, become unbearably anti-social or refuse to pay your rent for no good reason, the landlord is permitted to sell the property. It is a condition of the Sell, rent and buy back option that you pay your rent, otherwise you lose the benefits of this option.

Q: What is the Sell, rent and buy back option ?


A:
If you wish to buyback your property after an agreed renting period, you have this option, provided you are in a position to get a mortgage. If you have poor credit, you will have a few years to turn this around.

Q: What will my rent be?


A:
Your rent will be calculated around the offer we make you. We will confirm the rent in writing and this will be fixed for a 3-5 year period.

Q: Who does the valuation?


A:
The valuation of your property is conducted by an independent qualified surveyor appointed by a lender. The valuation is necessary for Home Solutions to secure a mortgage on your home. Home Solutions act as a surrogate mortgage holder for you until you are in a position to re-purchase your home.The valuation takes about 45 minutes and to achieve the maximum value it is important that the property is in a good enough condition to be let out to a tenant.

As well as current market conditions, the valuer will also takes into account the current sale prices of similar local properties and rents that local properties have achieved over the last 6 months. The result of the valuation is known in 2 to 10 days, at which point we will confirm the next stage.

Q: Will I need my own solicitor?


A:
No, our solicitors are able to provide all your legal needs. However, you can use your own solicitor if you wish.