Sell to rent back

sollydog

Hello I'm new to this site, hope someone can advise. I am considering selling our house to a company and then renting it back off them. This is something new to me, never heard much about it before. Can anyone give any opinions on this system?

Thanks

maforduk

sollydog wrote:

Hello I'm new to this site, hope someone can advise. I am considering selling our house to a company and then renting it back off them. This is something new to me, never heard much about it before. Can anyone give any opinions on this system?

Thanks

Not heard of this system myself either but the only people I can see earning from this is the company and not you!

Don't do it.

headchef

Sollydog - what's the full story? There is obviusly a reason why you are considering doing this. It would be helpful for us (and then you!) if you give us more details - remember no one knows who you are on here!

sollydog

Essentially its due to the amount of debt. Being 50, I cant see any other way out other than just selling up, pay off all debt and find a place to rent. I have 15 years left on mortgage and it will never be paid off :eek:

whatamess_2

Hi I put a reply up about this type of thing on a different thread. Basically they will value the property. (quick sale value)
Then knock about 25/30k off that. then charge massive rent. Possibly more than your mortgage.
My house on market for 185k
Quick sale value 170k
Offer 140k
This was rough fiqures from a firm I spoke, to the owner of this firm was very straight about fiqures.
Regards Messy.

in*the*red_6

Sollydog

It would be a good idea to post your state of affairs, including the amounts of all your debts and their APRs, your income, what you pay each month to mortgage and bills and everything else e.g. food. There's lots of people who can advise you on the best way forward on this board.

Best wishes

ITR

sollydog

in*the*red wrote:

Sollydog

It would be a good idea to post your state of affairs, including the amounts of all your debts and their APRs, your income, what you pay each month to mortgage and bills and everything else e.g. food. There's lots of people who can advise you on the best way forward on this board.

Best wishes

ITR

What is the easiest way to post my state of affairs? Do you mean fill in a Personal Budget Sheet from National Debt Line?

rchddap1

Essentially you post your income, and all your outgoings here (from debts, to how much you spend on food etc...). Then people will take a look at your budget and will comment on where they think improvements can be made and what action you should take.

Bestthingsinlifearefree

sollydog wrote:

Hello I'm new to this site, hope someone can advise. I am considering selling our house to a company and then renting it back off them. This is something new to me, never heard much about it before. Can anyone give any opinions on this system?

Thanks

HI Solly,

Welcome to MSE !!!

generally I would say this would be a very bad move. They would probably want to buy your house of you at "below market value", ie as you would be a distressed seller, say your house isworth e,g 125K but they would want to get it for less than that e.g 100k and no doubt if you wanted to buy it back of them it would cost a lot more.

Plus what guarantees are there that they would not turf you out once you are renting from them etc etc.

Generally these companies are trying to make money out of your situation.

If you need to sell your house try the normal way first / open market and try and get the best price possible.

Why not post all your incomings / income here and all your outgoings e.g mortgage,food, car and all your debts e.g amount,interest rate and term and then once we know your overall financial situation members can give positive suggestions about the best way forward.

Good Luck !!

jellycat40

I don't know why but I get really bad vibes about this. Why would anyone want to do this. Ok it seems like a way to sort out your debt but if you are going to give your house up at least the OR or similar would give you the going rate! If things are so bad that you need to speak to someone then go to https://www.insolvencybureau.co.uk and they will advise you. Or go to one of the charities https://www.payplan.co.uk.

Good Luck

Louise

sollydog

3 adults in family

Monthly income 3000

Outgoings / Month Outstanding Interest/Month

Mortgage 1300 145000
Car loan 175 7000
Bank loan 300 17000
N/Rock cc 115 5800 0.548
Barclaycard 100 4900 1.527
RBS 115 5050 1.385
MBNA 85 5200 1.385
Capital 1 125 4200 0.851
Mint 105 4600 1.385
Cahoot 77 3800 11.8 apr
Cahoot loan 80 3800 11.5 apr

Total/month 2577

House is worth about 210000

All this debt without the other essentials :eek:

Any advice appreciated