Sell to Rent Back- good idea or nightmare?

Chickfactor_2

Hello all,

does anyone have any experiences they would be willing to share about selling a house then renting it back? My husband and I are currently paying 2 mortgages- one on a house we live in, the other on what was the family home which his mum and brother live in although my hubby owns it jointly with his mum (We pay full mortgage on both).

Sadly Hubby was made redundant last Nov and hasn't been lucky enough to find work yet. There is now no way we can continue to pay 2 mortgages and he is very keen for his family to stay in the family home (lots of emotional stuff- this is why they are still there. I'm a bit harder and would have sold it years ago!). So we wondered if selling it to a firm who would then rent it back might be an option and I would welcome any thoughts.

Thanks

Chantelle xx

ray123

It might be worth seeking advice from the the citizens advice bureau?
I do not have any experience in this area but I would not advise selling the house unless there is no other alternative. Furthermore, the sell and rent back scheme is a completely unregulated business.
http://news.bbc.co.uk/1/hi/uk/7655909.stm
I would only go ahead with it as a last resort, if you are able to sell it back to the council...

There are a number of options available to you, so try not to panic!
1) Rent out your house and move into the family home until you get back on your feet.
2) Approach your mortgage lender and explain the situation. It might be possible to move onto interest only payments or remortgage onto a longer mortgage which would reduce payments.
3) Contact the CAB for professional advice AS SOON AS POSSIBLE! https://www.citizensadvice.org.uk
4) Maybe try to contact Martin Lewis, who is sure to have some great ideas.

Good luck, I sincerely hope it works out for the best and you do not have to sell yor home!

Millburn_farm

Ask the CAB sooooonnnnnnnnnnnnnnnnnn

From all I've heard rent back schemes are short term fixes; as in a few months; but basically the only winners seem to be the "buyers"

After the CAB I'd try the council and local housing associations


Good Luck getting sorted

Chickfactor_2

Thanks guys. We saw the CAB when this first started to be an issue about 12mths ago and after much scratching of heads the 2 people we saw said they'd never come across a situation like ours and didn't see we had much choice other than to sell one of the houses.

I've got MiL on the waiting list for a specially adapted bungalow or flat (she is severely disabled) and we're planning to speak to the Homelessness Advisor and explain that if they don't house MiL and BiL they will have to house me and Hubby! It's all down to the 3 of them (HUbby, MiL, BiL) having such an emotional tie to this house... As an outsider from it all it seems crazy to me to keep 2 houses!! :rolleyes:

Errata

So we wondered if selling it to a firm who would then rent it back might be an option and I would welcome any thoughts

If the inlaws are happy to be on a six or twelve month rental contract which the new owner can refuse to renew, if they're happy to have their rent increased by the new owner when the owner decides it's necessary, if your're happy to receive 60 - 70% of the value, then it could be a solution to your problem.