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HOUSE + HOME
JUST STAY HOME
In the Spring 2015 issue, Silver and Gold readers were
introduced to the Sell ‘n STAY™ program. Since then, Sell
‘n STAY™ has been growing throughout the GTA and more
and more seniors want to be part of it.
It gives them a sense of security knowing that they can live
the rest of their lives in the comfort of their homes, while
enjoying the benefits of converting their homes’ equity into
cash. Different from a reverse mortgage, this program
involves the complete sale of the home in order to access
100% of the equity. The homeowner then securely leases it
back with a long term legal agreement in place.
and when the refrigerator starts leaking, you call the Landlord.
Taxes, maintenance and repairs are no longer paid by the
homeowner. In addition, because the transaction is private no
one in the neighbourhood needs to know – pride of ownership
continues without the liability of ownership.
Jack is happy
with the offer he
accepted, and is still
living in his home
with his dog and
three cats.
“As someone who advocates for seniors, when I started this
program I wanted it to be beneficial and stress-free – not only
for the investors, but especially for our clients,” says Realtor®
Saskia Wijngaard.
The moving process is stressful and entails a lot of work –
weeks of packing and living out of boxes followed by weeks
of unpacking and living out of boxes. Not to mention,
what if you need to move out of your home before you get
to move into your new place? Where will you stay? Where
will you store all your belongings? Just the thought can give
you a headache. Through the Sell ‘n STAY™ program, seniors
sell their home to a qualified investor, then they enter into
a long-term lease agreement with the investor at a mutually
agreed upon purchase price and lease rate.
How is the home’s price determined? As with other real
estate sales, the market value of the property is determined by
comparing prices of similar homes that have sold recently in
the neighbourhood. The lease rate in this program is generally
calculated at 5% of the sale price of the home. One benefit is
that both parties must come to a mutual agreement prior to
moving forward with the sale of the home. The Sell ‘n STAY™
lease agreement takes into account all of the Landlord and
Tenant legal requirements and adds certain protection clauses
for both the Tenant and the Investor/Landlord. The agreement
may be set up for a 3, 5, or 10-year lease term, which for
the senior alleviates the concern of being ‘kicked out’, and
for the landlord acts as a hedge against market fluctuations.
Once the home is sold, the homeowner can continue living
in it as if it were still their own with the only difference being
that when the furnace needs repairing, you call the Landlord,
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Sometimes it’s not only about cashing out at the top
of the market. It can simply be a matter of finding a rental
property that accepts pets. In Jack’s case, he could not find a
retirement community that would accept his dog and three
cats. Through the Sell ‘n STAY™ program, he didn’t need to
move, he could ‘Age in Place’ and still unlock the value of his
home to finance his retirement. His home was listed privately
at $400,000. An offer came in on the same day for $380,000
with a lease-back of $1500 per month. A total of 6 offers were
presented to Jack with the highest being $419,000 with a
lease-back rate of 6% at $1900, and the lowest being $380,000
with a lease-back rate of 5%. Jack ended up accepting the
offer for $380,000 because the lease-back rate was lower and
that just worked better for him.
Created with seniors in mind, Sell ‘n STAY™ is a valuable
option for a variety of circumstances, for homeowners of all
ages. It just makes sense.•
For more information please contact Saskia Wijngaard and
Theresa Baird. Saskia Wijngaard is a Sales Representative with
Keller Williams Realty Solutions (905-278-8866). Theresa Baird,
Broker, is an Accredited Senior Specialist and Senior Real Estate
Specialist with Keller Williams Realty Solutions (647-298-0997).
www.sellnstay.com