Keep Your Home Ltd.

croc86

Has anybody heard of this company before and/or had experience of dealing with them?

http://www.jordans.co.uk/CompanyIndex/k/ke/kee/07004000/keep_your_home_limited.html

Apparently they can arrange for a home owner who needs to move home (who may or may not be in negative equity) to move with no fee payment.

This is done by using the 'power of attorney' to sign over the property in the companies name, they rent it out for 5 years, then sell it on at an expected profit paying all of the costs.

Is this too good to be true for a homeowner who is desperate to move and in 10-20K negative equity, and can't wait 3-4 years to break even on the home price!?!

Or is there some major catches with dealing with these types of companies?:(

Thanks

GoToGal

If it's too good to be true, it probably is.*






* With the exception of chocolate....

maninthestreet

So this company gets ownership of the property - what does the (previous?) owner get in return???

croc86

maninthestreet wrote: »

So this company gets ownership of the property - what does the (previous?) owner get in return???

Nothing....apart from being relieved from negative equity and escaping a possibly unbearable housing situation e.g overcrowding, wanting/needing to emmigrate etc.

Even if house prices shot up by 10% tomorrow and the property was then profitable to sell surely there will still be an obvious problem. What does the house owner then do if he/she wants to climb the ladder knowing that a large deposit (10-25%) is needed and the larger property that he/she needs (e.g for a growing family) is now 10% higher in price and now unaffordable!?

Is signing your property over to this company (effectively like handing back the keys and walking away) not better than taking out a 15-20K loan to sell the current property whilst in negative equity, and sitting tight in rented accomodation, in the vain hope that banks will make it once again more affordable to the buyer even though they now have a 15-20K debt hanging over them!?!

gauly

You can't just give your house away without the permission of the mortgage company. So who pays back the mortgage? This doesn't even begin to make sense!!

croc86

gauly wrote: »

You can't just give your house away without the permission of the mortgage company. So who pays back the mortgage? This doesn't even begin to make sense!!

I don't know how this works exactly, thats why I am asking people on this here forum! Presummably the mortgage company would have no choice because of 'power of attorney' ???

The company said they pay back the mortgage (and own the property) once you have changed it to interest only. Then they find tenants to rent it whilst they wait for the property market to recover. Once they can sell (10% + profit???) they probably do so.

They have a large portfolio of properties apparently, but I can't seem to find anybody else who has delt with them.....hmmmmm.

Running_Horse

Giving someone power of attorney over my home for five years?

They can then sell it for any price they like without my agreement or permission?

What can possibly go wrong?

googler

Can you grant Power of Attorney over just one aspect of your financial affairs?

Radiantsoul

Clearly some sort of scam.

You cannot just rent out your property without the permission of the mortgagee, which they currently tend not to grant on properties in negative equity. I am not sure why they would agree to let another company do the same. Companies that deal with actually giving mortgages spend a lot of time and money to ensure their rights cannot simply be overridden by a third party..

hugheskevi

The main thing I would be asking is why does the company not just purchase repossessions, rent them out for 5 years, then sell if the company basically wants to speculate on domestic property.

Clearly it doesn't do that as it gets more money from whatever arrangement it enters into with the current owner, either in pure cash terms, or in the form of insurance in some way (ie if it can leave the current owner liable in the event property prices fall).

If you don't understand the business model, and exactly what you are paying for, it is almost certain it will cost you more than you think it will

GDB2222

I think I'll vote for SCAM.

The only place that this company shows up on google is this site and sites like Jordan's. So, I don't see how they've managed to piece together a large portfolio. They don't even have their own website. As I said, I vote for SCAM. Just walk away whilst you still have your shirt.