House buying schemes

mamma_mia2008

Some advice please. We are considering selling on one of these buy and rent back schemes (although we dont actually want to rent back). Does anyone have any experience of using these and if so which ones? there are so many, National Homebuyers seems to be the most popular?

SquatNow

The sell and rent back companies buy the proerty off you at a greatly reduced price.

Just DROP THE PRICE and sell your house the normal way.

mamma_mia2008

i know that they will not offer the full value but we need quite a quick sale and the condition of the house is not great, and with the market being so slow (I can see at least 3 houses on our street that have not sold in the last 4/5 months) I thought this might be just as easy as having to reduce the price to obtain a sale on the open market but am worried about it sounding "too good to be true"!!

chickmug

As an EA I regularly get people tell me they will have no chain as a company will be buying their house from them. The first time I heard it I thought great but from that point on I thought OH NO. Oh no because I have never dealt with anyone who has looked into it and gone ahead with it. One or two had their solicitor read the paperwork and that put them right off.

As Squat Nowsays "DROP THE PRICE" yourself.

ad9898_3

mamma_mia2008 wrote: »

Some advice please. We are considering selling on one of these buy and rent back schemes (although we dont actually want to rent back). Does anyone have any experience of using these and if so which ones? there are so many, National Homebuyers seems to be the most popular?

I sold to one of these companies 3 weeks ago, I had my house up for 12 months, it sold 3 times and each one fell through, totally p**sed off. The house was a lovely 4 bed detached, conservatory etc..

My ex who was on the mortgage did a runner back to Australia with my 4 year old daughter:mad:, (that is another story) and left me with a problem, I was on a 5 year fix at 4.25% that was coming to an end, payments would have jumped £300 a month.

One of these companies contacted me and I sold it to them for 24% less than the asking price, a bummer I know but in this market it may not be such a bad thing and now able to save about 1k per month. Walked away with about 9k. To be honest I'm glad to be out of the property market now and focused on saving whilst the market crashes.

Just to add, I didnt rent the house back.

Another thing I wanted to add, they paid my fees upto £500 and they paid for the survey.

Joy_Dean

ad9898 wrote: »

I sold to one of these companies 3 weeks ago, I had my house up for 12 months, it sold 3 times and each one fell through, totally p**sed off. The house was a lovely 4 bed detached, conservatory etc..

My ex who was on the mortgage did a runner back to Australia with my 4 year old daughter:mad:, (that is another story) and left me with a problem, I was on a 5 year fix at 4.25% that was coming to an end, payments would have jumped £300 a month.

One of these companies contacted me and I sold it to them for 24% less than the asking price, a bummer I know but in this market it may not be such a bad thing and now able to save about 1k per month. Walked away with about 9k. To be honest I'm glad to be out of the property market now and focused on saving whilst the market crashes.

Just to add, I didnt rent the house back.

Thank you. It does help to read of others' experiences.

theGrinch

quite simply, dont expect something for nothing. usually they will offer you a percentage of the RICS. While this can vary wildly from 50% to 90%, the average at present seems to be 75%-80%.

never pay for a survey upfront and if you are in any doubt always seek professional advice.

Joy_Dean

theGrinch wrote: »

quite simply, dont expect something for nothing. usually they will offer you a percentage of the RICS. While this can vary wildly from 50% to 90%, the average at present seems to be 75%-80%.

never pay for a survey upfront and if you are in any doubt always seek professional advice.

75%-80% is the average that I have read in sites that I have explored.

Going along this road is something that I am considering.

Rabiddog_2

don't do it .. They are mostly cads and Bounders, without your best interests at heart. You can almost certainly do better selling on the open market

ad9898_3

Rabiddog wrote: »

don't do it .. They are mostly cads and Bounders, without your best interests at heart. You can almost certainly do better selling on the open market

Do you have experience ??, if not read above post. It is true that really you should only consider this if you are in a similar situation as myself. Of course they are out to make a profit and are therefore unlikely to have your best interests at heart, but the people who bought mine were decent and followed through with what they had promised. They gave me 24% off market value. Since then they have lost half of that "24%" in the falling market. In the end it may be the best thing I ever did, only time will tell as how far the markets fall.

The bottom line for me is I had no real choice anyway, so have no regrets.

Treadmill

75-80% of the property value quickly will appeal to people with low LTV in areas where nothing is moving, around here people are having to drop prices to about 80-85% of what they wanted to get a quick sale anyway.