sell up and rent back??

minimoocow

I have to say I agree with DD - the original post did appear to be touting for business however if that wasn't the case then fine.

In response to the original poster I'm not sure how this route would actually help you. If you have insufficient equity to remortgage then selling for perhaps 80% may not give you enough to pay off your mortgage anyway.

If you do get enough to pay off the mortgage you would only have a small amount left so are you sure you would be better off renting? I know if I sold the house and rented it back at market rate it would cost me about 40% more in rent than it does in mortgage repayments (but I have had the house 4 years and both prices and rentals have grown by that much in that time)

I guess what I'm saying (and in fairness what northwest-guy mentioned) is make sure you get advice and find out whether the figures stack up in reality - until you have done that you can't really make a decision

But if you are after opinion - mine for what it's worth is find another option if you possibly can - check out these forums for ways to reduce spending if you haven't already and you might be surprised at how much you can save which would make the mortgage more bearable.

MMC

nellis10

Dithering_Dad wrote: »

One man's "petty back and forth" is another man's debate. If everyone on these forums followed what you seem to advise - don't question other poster's advice or motives, even if you think they are wrong, then how will you form your "informed opinion"? I certainly don;t think we detracted from the original question as we didn't venture off topic and though one or two insults may have been traded, they probably made the debate that bit more interesting to bystanders.

I think it was very useful and interesting for me to debate with Northwest_guy and I am pleased that he came back with his answers. With any debate, you have two opposing viewpoints and the truth is probably somewhere in the middle. Had we not had the debate, the thread would have been half a page long and ended with NW's 100% positive post and his company's website address. Not much to form a balance opinion from...

You've formed an opinion that you wouldn't touch sell-to-rent with a bargepole - was that before or after reading our debate? Other's may have read the debate and decided that it was the best solution for them - at least they had a chance to see opposite viewpoints.

I'm Sorry Natalie, I think that if we don't debate issues then these forums will the poorer for it.

I have to say, that i stand corrected on the "pettiness" of the debate!:D

However I don't like reading posts where the only thing someone says is "Barge Pole" or "No way" or whatever.

But when reading both your posts it did feel a little bit as if you were having a go at each other for the sake of proving a point and getting a bit personal...if I am mistaken I apologise!;)

Now, to the OP's point...
I personally would look at ALL alternatives to this scheme as NW_G has pointed out...there are unscrupulous companies out there and also do you have the assurety that you can stay there for as long as you want? My feeling is not...once the market becomes bouyant the owners will wish to cash in!

ailuro2

To the OP I'd say try to find another way to earn money, some part time work, typing for local small businesses, doing ironing, taking in a lodger etc??

There are many pitfalls in this route, you can surely see this is not the easy way out it first seems?

If there had not been a web link to NorthWestGuy's company, then perhaps he would have been taken more for what he said instead of setting off all sorts of alarms.

In the area of buying houses and renting them back, there have been too many sad tales of unscrupulous practice, I suggest next time you try to help someone, you leave out the web link and offer the best advice you can.;) Then the lovely people here on MSE won't jump on you / try to defend people in a vulnerable situation....

Northwest_Guy

To be fair I didn't realise there would be such a backlash, but I think this thread now holds water for anyone who wants info about the scheme but can't find out because people either say "don't touch with a barge pole" or "we give you the best price and we can move mountains etc" sales speel.

I know it looked like I was trying to sell the company by placing the link which is why it was removed. That being the case this thread now holds some vital information and something to compare against for anyone who has thought about it.

My thanks are to dithering dad for a really entertaining debate which although yes did go a little petty I would say it made it more enjoyable for readers......and me;)

I hope that anyone in a situation that would lead to sell to rent back would look into every possible avenue before going down this road. That ladies and Gents is my opinion on the subject and hope this thread helps as many people as possible.

margaretclare

I am afraid that I am one of those people who said 'don't touch it with a bargepole', but IIRC I gave a few reasons why not.

Interestingly enough, this morning we received yet another leaflet offering us this. 'Sell & Rent Back Your Own Home' in large brightly-coloured letters.

*Release cash for any purpose
*Remain in your home
*Sell with no fees or hassle
*Avoid repossession

Free valuation by us, no fee no obligation. Ask about our buy back option.

Now it doesn't take a genius to work out that if they're doing their own 'free' valuation, they will put the value they want on your property, and this alone would set alarm bells ringing for me.

However, in the interests of fair play, here's the website they quote: www.aquicksale.co.uk

Now I'll put the leaflet back into the bin where it belongs.

Margaret

PS: The website quotes this BBC Business article, which may be of interest: http://news.bbc.co.uk/1/hi/business/6266268.stm

Northwest_Guy

I agree completely with you on that one. But the company I work for do use independant chartered surveyors (at cost to company not client) I know of companies who use rightmove of all websites to get an average price for property!

I ask how can anybody get an average price without even looking at the property, this relates me back to why this industry must be regulated.........would you use a bank that doesn't adhere to the banking code of practice?

Thought not

ehs_3

nellis10 wrote: »

For what my £13.47 is worth, I've read this thread purely out of interest and I find the petty back and forth debate detracting from the main point.

Dithering Dad you may well be right to say that in 95% of cases this is NOT the way forward as it would not be cost effective.

However Northwest-Guy was merely (I think) giving us an explanation of how these schemes work - which I didn't know.

Now if I was in the postition (and fortunately I am not) of needing a solution to a financial problem, I could very well read his explanation and think - No way...not a way for me to go. But someone else might think contrary.

The point being, if you don't know how it works, you can't make a decision yes or no. Now I know how they work thanks to NW-G's explantion I would definitely avoid it.

Merely saying - "barge-pole" "no-way-jose" and the like is an opinion but not an informative one.

The best advice is an informed one in my opinion!;)

Hi Natalie

I just came across this thread and yes unfortunately I have noticed that whenever someone on MSE comes on and asks for some advice on quick sale / rent back businesses, there tends to be a rush of posters who basically say things along the lines of "these people are all scumbags, etc..."

It is correct to make sure people are wary of the bad operators in the industry but it doesn't help anyone to distinguish the good from the bad, or if they are thinking about using one, what they should be looking for.

You are also very right that in 95% of cases selling your house this way is definitely not suitable for people. I would say it is even more, perhaps 98% of times it wouldn't be suitable. However in a small minority of cases, it is a useful option to consider.

I work in this industry so perhaps others will think my view is biased but there it is. I think it is useful for the forum to get a range of views on any topic including those such as myself or Northwest-Guy who actually work in the industry and know what drives it and exactly how it operates.

There are only a few companies who will attempt to charge for a valuation. I would say 99% of quick sale businesses offer a free valuation. Unfortunately there is a large national company which spends a lot of money on TV ads which does charge upfront for a valuation. Because this company has a high profile it tends to skew the view most people will have of the industry.

Yes, someone will definitely not get the best price for their house selling to a quick sale company. To get the best price, someone needs (in general) to go through an estate agent, and go through all which that entails. In general this is fine for most people, but for someone who will have their house repossessed in 2 weeks time, it just isn't an option at all. We are in this to run a business, and any business to be sustainable needs to pay for its overheads, costs and still be profitable. If not, it won't be around very long. Then of course for any specific property there are the costs involved for that property which are taken into account when making an offer.

Certainly I'm not criticising DD, as he actually explained why he is so opposed to the sort of thing which I do! That is useful to have that point of view. I think NG made a bit of a mistake linking to his website, which is a mistake I once made early on when I joined the forum. I found eventually in the forum etiquette that links to websites aren't generally accepted on the MSE forum, so I'm sure NG has learnt from his mistake now

UncleJimbo

I just found this forum story today I was looking because having herd a lot on the BBC yesterday about sell and rent back rip offs. I have to say i agree with margaret and dithering dad.

The BBC story was very clear that people don't know what they are getting in to when they do this. My own mum and dad did this sell and rent back at the beginning of January and they are now scared they will be evicted by the company that it there land lord. I think if you asked them now they would say they would not do it another time.

Just my opinion of course, but based on what my parents are going through.

Jimbo

Northwest_Guy

Jimbo,

Can I ask which company your mum and dad have used and what sort of tenancy agreement they have been given. I might be able to help or at least put their minds at ease.

The BBC story just highlights what I have been saying all the way through this thread. This industry MUST be regulated sooner rather than later. THe more people who stand up and agree the quicker something will be done about this.

keeperbear

Northwest_Guy wrote: »

Thanks for making my point. Once again it would seem you have gone down to name calling

That is the typically post of the troll called "Dithering Dad". All he does is go around insulting posters thinking he is being sarcastic and smart. He needs to get a life, but judging by his post count he spends all his time on this forum.