Quick sale selling with a boiler agreement

Concerned75 · 17 October 2017 at 12:53AM

Just wanted some quick advice really.
If you wanted to sell your home through a quick sale company ie Homebuyers National etc...and you have a payment plan agreement on a boiler, is it still possible to sell your home and you can agree to effectively sell the continued boiler contract with the house, or do you have to pay this off before they'd be prepared to make you an offer?
I was just thinking would there be any reason not to agree to this? It makes sense to me as the new boiler is guaranteed a regular service and parts, should the quick sale company let the house to tenants or a re sale.

Thanks.

Slithery · 17 October 2017 at 1:04AM

Well what do the terms of your payment plan say? I can't read it from here.

Personally I'd be more concerned about selling your house for only 50% of its value.

Davesnave · 17 October 2017 at 7:15AM

For people who regularly contribute here, the question wouldn't arise, as they'd not be selling to any quick sale company. These firms just prey on the naive and vulnerable.

One of their tactics is to renege on matters that they might initially agree, so who knows what would happen re the contract, but the chances are that as a third party not bound by it, they wouldn't take it on, even if its terms allowed a transfer. As Slithery says, only you can see those.

If you need to get shot of the house fast, put it up for auction.

chappers · 17 October 2017 at 7:26AM

I don't think they would care one way or another. Just give whatever notice you have to as per the contract, surely neither of you are going to care about a couple of hundred quids work of boiler cover.

eddddy · 17 October 2017 at 7:48AM

Concerned75 wrote: »

...and you have a payment plan agreement on a boiler...

So you're saying that you haven't yet paid for the boiler and installation - you're paying for it in monthly instalments?

That effectively means you have taken out a loan to pay for the boiler. You cannot transfer a loan to somebody else. You would have to read the loan agreement to find out the early repayment terms for the loan, and pay it off.

Depending on who supplied and installed the boiler, and who the lender is, I suspect the loan would have been for quite a few thousand.

(On a different note, as others suggest, if you understood how a quick sale company worked, you probably wouldn't use one. You don't get a good deal.)

Concerned75 · 17 October 2017 at 8:03AM

I know what the house is worth and there's no equity in the property, so 'getting ripped off' doesn't apply in this case.
I know in my agreement it does say it can be sold on to the new home owner. As I said originally, I just wanted to know if there were any T&C reasons why these type of companies wouldn't agree.
Preferably an answer with someone who might have knowledge in this field.

davidmcn · 17 October 2017 at 8:12AM

I would think any new buyer would prefer to make their own arrangements (or none) for boiler maintenance, and this sort of buyer definitely isn't going to be interested in paying you anything for it.

Or if what you're talking about is a credit agreement, that's either a personal loan not connected to the house (so you continue paying it off), or it's secured against the house, in which case you'll need to pay it off on completion of the sale (or convert it to an unsecured loan).

eddddy · 17 October 2017 at 8:39AM

You need to be clearer about what you are paying for on a monthly basis. Is it:

a) Boiler Breakdown insurance with servicing
b) Paying off a loan for a boiler
c) a combination of a) and b)
d) Something else

Concerned75 wrote: »

I know what the house is worth and there's no equity in the property, so 'getting ripped off' doesn't apply in this case.

That makes no difference. You will be worse off using a quick sale company.

Here's an example with made-up numbers.

An Estate Agent would sell your house for £100,000
Or a quick sale company would give you £80,000

If you have a mortgage for £100,000 - you could pay it off by selling through an estate agent.

If you sold it through a quick sale company - you would be left with a debt of £20,000 that you owe to the bank.

TrickyDicky101 · 17 October 2017 at 9:41AM

Concerned75 wrote: »

I know what the house is worth and there's no equity in the property, so 'getting ripped off' doesn't apply in this case.
.

If there's no equity in the property then your desirability to the QHC is going to be severely limited as it will be up to the lender who you have your mortgage with as to whether they accept a deal or not. The bank will want to maximise the sale value to minimise the resulting unsecured debt they may have to accept with you.

silvercar · 17 October 2017 at 11:55AM

Not disagreeing with everything already said, but:

and you have a payment plan agreement on a boiler, is it still possible to sell your home and you can agree to effectively sell the continued boiler contract with the house, or do you have to pay this off before they'd be prepared to make you an offer?

Third option is to carry on paying the monthly repayments after you have sold.

We had similar with a alarm system on a 3 yr contract. Our buyer's weren't interested in an alarm, so weren't prepared to pay monthly to take over the contract. The alarm company wanted to charge a fee for us to clear the balance early, so we just didn't tell them we had moved and continued to pay the monthly payments until the end of the contract.

G_M · 17 October 2017 at 11:59AM

Concerned75 wrote: »

I know what the house is worth and there's no equity in the property, so 'getting ripped off' doesn't apply in this case.
.

Of course it does.

If the property is 'worth' £200K, and your outstanding mortgage £200K, and the 'rip off' QSC pays £120K, how are you going to pay off the other £80K?

Or are you hoping the lender will let you transfer it to an unsecured loan? In which case how will you pay that off in the coming years.....?

I suspect you don't fully understand how mortgages work. Or how QSCs work. Or how property sales work.

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Quick sale selling with a boiler agreement

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