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House for sale and for rent - is there insurance
do_it_today!
Posts: 786 Forumite
Hi :hello:
this may seem an odd question but overnight I have been considering renting.... and I have found a house on right move - where I would love to buy but cant afford too - however it is also now up for Rent (which we can afford) its been on the market for a while with no price reduction. My concern is that on checking net house prices it was bought in 2007 for the same price it is on the market now for!! which rings big fat alarm bells for me :eek:..... (ie they want to sell but cant afford to reduce the price and walk away with a loss)
now if even if you sign an AST if it does get repossed I take it there is no guarantee to honor the rest of the tenancy agreement is that right?
this may seem an odd question but overnight I have been considering renting.... and I have found a house on right move - where I would love to buy but cant afford too - however it is also now up for Rent (which we can afford) its been on the market for a while with no price reduction. My concern is that on checking net house prices it was bought in 2007 for the same price it is on the market now for!! which rings big fat alarm bells for me :eek:..... (ie they want to sell but cant afford to reduce the price and walk away with a loss)
now if even if you sign an AST if it does get repossed I take it there is no guarantee to honor the rest of the tenancy agreement is that right?
:j Where there is a will there is a way - there is a way and I will find it :j
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Comments
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Just because its on for the same as they bought it for doesnt mean they are in trouble. They may have plenty of equity in the house.Pawpurrs x
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If you rent the property, pay the rent on time when it is due, and the net rent paid to the LL covers his mortgage payments (and he uses it for that!) then there's no reason repossession proceedings will start.
Most sensible people will avoid repossession if at all possible as it will usually end up costing a lot more that if they just sold the property themselves, not to mention the harm it causes to one's credit profile.
I guess this is one of many sellers who in the current climate is hedging his bets - he'd like to sell the property but as that may not be particularly easy, would be prepared to rent the property (and so hopefully cover the mortgage payments due) for a short while until the current credit difficulties ease."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
Thanks Premier - its on net house price as being bought last year for £329k and has been on the market for at least 6 months at £330k so assume they would have put up at least 5-10% deposit but what I dont understand is if they really wanted to sell why they havent reduced the price slightly? (unless its because they cant afford too)- last year it was common to see 3beds up for that price now the only other property on the market asking for that price is a 4bed all others are on between £265-£310k now and even then they arent shifting.:j Where there is a will there is a way - there is a way and I will find it :j0
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Perhaps the seller is in no desperate hurry to sell despite having no use for the property now?
As you are probably aware, obtaining home loans is currently not easy resulting in lower prices being attained by those who have no option but to sell.
If the owner has no need for an urgent sale, why would they not let the property for a while at a rate that at least covers the current mortgage payment and sell it for the desired price when the current credit crunch eases? That way they don't lose any money."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
If you rent the property, pay the rent on time when it is due, and the net rent paid to the LL covers his mortgage payments (and he uses it for that!) then there's no reason repossession proceedings will start.
You are of course right that repossession doesn't happen if the mortgage is paid.
However, if the OP could afford to rent this house and can't afford to buy it, that might well suggest that the mortgage is higher than the rent....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Hi :hello:
thanks for the responses so farneverdespairgirl wrote: »You are of course right that repossession doesn't happen if the mortgage is paid.
However, if the OP could afford to rent this house and can't afford to buy it, that might well suggest that the mortgage is higher than the rent.
Rent is about £1200 @ £330k we could afford a 10% deposit interest only £1238pcm repayment would be £1736pcm :eek: @ 5% interest rate this we could not afford.
I have spoken to the owners today and they have decided to wait until market recovers to sell so I feel more at ease as maybe they are not going into financial meltdown as I feared!:j Where there is a will there is a way - there is a way and I will find it :j0 -
Perhaps the seller is in no desperate hurry to sell despite having no use for the property now?
If the owner has no need for an urgent sale, why would they not let the property for a while at a rate that at least covers the current mortgage payment and sell it for the desired price when the current credit crunch eases? That way they don't lose any money.
this appears to be the case:j Where there is a will there is a way - there is a way and I will find it :j0 -
How much is the rent?...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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Rent is about £1200 0
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