Renting, selling and renting back.

diddly74

I'm all confused!!!!

The CCCS have advised us to stop paying mortgage, and move into a rental property when we had saved up deposit etc, and then go bankrupt, so the house goes straight into the BR.

Found a private landlord who has a property that we like - but its ready now and obviously he wants to let it asap. (We have missed No mortgage payments yet!!, so haven't had chance to save up yet!) He has said that there is another person interested and as far as he is concerned its first come first served. The house is in a perfect area for us, close to my daughter's school now and when the eldest goes up to Senior School in September its in a good spot for her to walk from and her friends are all in the area.

I am feeling a bit panicy and worried that we won't find another private LL house in this area. Letting Agents are charging £250 to credit check and I am sure we would fail. Meeting the rental charges is not a problem. Both Hubby and I are working now.


Then when talking on the phone to the LL last night he threw a spanner in the works. He has mooted the idea of buying our house and renting it back to us, but he has not seen it and doesn't even know its a 4 bed! But I don't know if I would like or handle this idea. I had come round to the idea that we would be moving out. Leaving this house and starting FRESH. I am not particularly unhappy about moving. In fact I was quite looking forward to leaving the house, and stresses behind.

Our house needs a fair bit of DIY doing to it, radiators putting back after building work, plastering, internal doors need replacing and new carpets/flooring needs putting down and it needs a freshening up of the decorating and woodwork. Oh and the skirting boards/door arcitraive (??) needs renewing in the kitchen where our dogs decided to chew them when we went on holiday and our "dog sitter" left them alone too long! We have "lived" with it cos its our and we just don't have the money or DIY know how to complete the work. And frankly, I would be embarrassed to show a buyer round.


Oh and the house is in Neg Equity. If we sold to him - and he wouldn't pay over the odds he is a business man afterall - we would have the shortfall to deal with in our BR. I didn't actually tell him that we were going BR, but I did honestly tell him we were leaving the house because of debts we couldn't pay. And he was cool with that.

If we don't manage to get this house he has for rent now, and cannot get a house through a Letting Agent - how do I go about finding other Private Landlords to contact??? Nothing in the local newspaper last night, and council don't give out Private LL details, tried that one!

I am all confused. Sorry for all the questions all the time. I feel I am being a right pest but I really can't think straight anymore!!!!

Thanks for any help you can offer!

diddly74

It seems that no one has anything to say on this for me!!!!

[Deleted User]

you can bet that his best offer for your house would be 80% of its value possibly less,and that he would maybe offer you it on a 6 month let basis after which he would put the rent up,and remember if he goes bust then you would also lose the house all over again

diddly74

Hadn't thought of how low his offer would be yet. It just sent loads of questions whizzing round my brain!

G_M

diddly74 wrote: »

It seems that no one has anything to say on this for me!!!!

Well it's hard to know what to respond to.

The rental. No sensible LL will wait around losing rent when he has other tenants wanting to move in. How long do you want him to keep the rental property open for you?

Your house. Woodbine is right. He'll offer below market rate especially as you say the condition is not too pristine. As you're also in negative equity I don't see how this could work.

Most LLs advertising directly use the local paper. There are also some websites : loot, primelocation, zoopla, fish4, or just google 'property rental london' (or wherever).

alunharford

If you can sell it to him, it really doesn't matter what price you get if you're about to go bankrupt.

Which is why your mortgagee won't let you. Sorry. :-(

silvercar

If your in negative equity you can't sell it, to him or anyone else.

If you stop paying the mortgage, leave the property and rent, it will be months before it is repossessed. Only then will it be sold. Some people would advise that you don't go bankrupt just yet, until the negative equity has been quantified there is the risk that the lender could argue that some of the debt occured after bankruptcy and so isn't included.

Without knowing your circumstances, I am still puzzled why repossession is being suggested. If you go bankrupt with negative equity you can often keep your home by buying back the Official Receiver's interest in it for just the legal costs. If your mortgage is manageable (without youe other debts) I don't necessarily see the benefit of leaving your home.

diddly74

Thanks people.

I need people like you to bounce things off and to give me straight answers. My husband and I don't know, so when we talk we just go round in circles. I have spent many hours trawling these forums and the net looking for answers, and you see so much text that sometimes you just want someone to say yes or no. So thank you. It is becoming much clearer now what our options are, what we are to do - now that is another matter all together. We are paying the mortgages ok, so I am leaning to just staying here and riding out the BR and then later in life seeing what the market it doing, we are in no rush, our youngest will be in school for the next 11 years yet! If we have a better chance of keeping the house than not then why not????

Fire_Fox

Read the bankruptcy board, there will be people who have gone both routes and you can read how the process worked in real life for both groups.