selling house to rent back

jenkie_2

Hello, i have just joined this forum so apologies if im repeating a questions thats already been asked.

We have a mortgage that is in arrears and is looking like we will be taken to court for repossesion, we dont have a good credit rating so cannot remortgage etc.

My husband was off work for a couple of months and we fell behind as a result, it is looking like he will be off work again for a while, i dont work as we have 2 disabled children and i am a full time carer for them.

We have seen on the net some companies that will buy your house from you and then rent it back, we dont know anything about this and wondered if anyone could give us some advice, we are on the waiting list for a council property as ours is unsuitable but have been told that there is a long wait even though we are classed as special needs housing.

Thanks

mystic_trev

Don't do ANYTHING until you have spoken to Citizens advice.There are too many people willing to make your life more miserable than it is, what you need is urgent advice - very sorry to hear of your situation.

Jorgan_2

Many of these companies will buy your property for below market value, 30% under isn't uncommon. Take as much advice as you can.

silvercar

Have a look at the way these people operate, there are good guys and bad guys. Even for the good guys it has to make financial sense to them to do this.

If you read the BMV (below market value) section on singingpig.co.uk you will see the calculations used to make a sale and rent back work. It all depends on what you need to realise out of the sale how low a rent you can get.

You are doing the right thing to sort something now rather than wait until your options are limited. But do tread carefully. Your best bet may be to price the property for a quick sale and sell in the normal way, then move into rented.

regularsaver1

They can charge you a high valuation fee too

theGrinch

i agree with silvercar's comments. if you browse singingpig and post your case there you will get responses. like any industry there are good and bad guys out there.

there are some "large" quick sale buyers out there I wouldnt consider and never pay upfront for anything.

jenkie_2

Thanks very much for you replies, that site singingpig is really good, ive learnt a few things from there i can tell you!!!

The only drawback with us selling and then moving into rented is that we have been told that we will get a council property eventually as the house we live in is totally unsuitable for our childrens needs and if we move house then we might be waiting longer, also im just a bit concerned as we have now missed 2 payments on our mortgage and one of the companies told us today that if we miss another one then we will lose our right to negotiate any deals with our bank re letting us pay at a reduced rate, i know nothing about this or if they are telling the truth.
Does anyone know if this is right?

Thanks

taliwillow

Hi Jenkie,

I would definately say that you should check out all of your options first but if you do find that you still want to sell up and rent back then I would recommend keys property. We recently sold to them and rented back for 1 month until the new build we were buying was ready for us to move into. It was the perfect way to do it for us as although they paid us about £7k less than houses like ours were selling for at the time, it saved us the estate agents fees, the hassle of viewings (and no shows) which we had experienced the previous time we had tried to sell and it meant that we weren't in a chain so we could stay in the house until we were ready to move rather than be pushed out by someone else who was desperate to move in. Keys property also paid £500 towards the fees for selling to them (the fees weren't much more than this) and they paid for a valuation. We did not give them a penny! They even let us live in the house rent free for one month in exchange for our fridge freezer and washer dryer (which was great for us as we had wanted to get rid of them anyway as they wouldn't fit in the new house!).

I'm not sure what area you live in but as there are different keys property representatives all over the uk, obviouslyI can't guarantee that you will have as much help throughout as we did (the customer service was excellent). We dealt with the Director of the company, and I don't think she would accept poor customer service from any of the people who work with her.

Hope this helps and hope everything goes well for you.

Taliwillow

jenkie_2

thanks talliwillow, i have just had a look for that company but cannot find anything, can you provide a link for me?

Thanks

taliwillow

Hi Jenkie,

I have just checked and it looks like the keys property website is still there but it has an announcement to say that as the lady who runs it can no longer keep up with both businesses she has decided to close this website. however she does have a link on there to https://www.a-quick-sale.co.uk which, now I have looked at this website, I remember that it was through this website that we actually found her anyway. Keys property was just her other business that related to advising people on buying property for renting etc.

I would be interested to hear how everything goes especially if you go through a quick sale.

By the way, about a month after we moved into our new house we received a letter from them asking if we would fill in a short survey to say what we thought of the survey we received and they would send us some vouchers as a thank you. The survey took us less than 5 minutes to comp[lete and within around 2 weeks we received £50 of M&S vouchers from them. I know it's not much in the scheme of things if you've had to give a big discount on your house but I believe that every penny counts so I really appreciated it. Especially as the quick sale way was the best way for us at the time and it meant we could have the house we wanted before someone else snapped it up while we were trying to sell our house.

Good luck!

Taliwillow

homer_j_3

I have had a client use the above company and they did seem pretty happy with them but it all depends on the money they offer and what you are prepared to accept.

I know the owner of the company I work has started offering a similar service and I know the formula that he uses and he will normally buy at 80-85% of the value of the property and then offer you 2 or 3 years worth of living time at the property without paying* and then hoping that you are in a better financial position he will sell it back to you for an agreed price at the time of you selling it to him.

* he asks that you put an equivalent amount of rent payments in a managed account out of your equity to cover this. This then allows the person to use whatever they could afford on a monthly basis to save up to for a deposit on a new property after the 2 or 3 years - whether it be the house you are in now or a new one. If you decide not to buy back then he has to sell it.

I think its an ok principal for people who are struggling and have equity but may not be for everyone...

My advice is get a few people around to make offers if you are serious about doing this.