Sell and Rent Back home from companies

masueuk

Does anyone have any knowledge of the type of companies who buy homes to rent back to current owner. My neighbour and her husband are splitting up and she doesnt want to move at least for now, because of needing stability for the kids. They have a ton of debt. She was going to approach the housing association who own many properties around here. I had a look online and found a load of companies who apparently buy your home for between 75% and 90% of current market value and you then rent it from them. Some of them are national home buyers, A Quick Sale etc. She will need to look into all options, but wondered if anyone here has experience good or bad (instincts tell me bad is likely to get more !)

saver_sam

Rearrange the following:

"Bargepole Dont With Touch"

A bad bad idea

Will.Power_2

This sounds like the sort of scheme that targets the most vunerable and benefits only the people with the money...
Take your friend to the Citizens' Advice Bureau where you'll find some real help.
(And don't let her watch those daytime tv adverts promising to sort all your money problems. There are proper charities that will help with debt problems, like http://www.cccs.co.uk/)

Emmzi

To explain why they may be 'bad'...

- experience of folks on other boasrds suggests offer is 50 - 80 per cent of market value - a hell of a loss
- the rent may be guaranteed for an initial period, but what if they put it up massively after that?
- then you can't afford to live there any more, *and* you lost maybe 20% (best case scenario?) of the value of your home at the beginning!

It's a case of reading every bit of the small print with great suspicion.

Zammo

Avoid these parasites at all costs. They are profiting from peoples misery. Sell your home if needs be and rent elsewhere. Do not give these businesses the opportunity to prosper.

bristol_pilot

It will be a bad deal for all the reasons that others have posted PLUS they charge a non-returnable fee for valuing the house, which they keep even if your friend decides not to go ahead. HOWEVER, your friend could be in a situation where all the alternatives are even worse, such as having nowhere decent to live. It will depend on individual circumstances and I would suggest that your friend contacts the CAB for some free advice.

taliwillow

Hello,

My husband and I used a quick sale a few months ago and we only have good things to say about them. We didn't pay out a penny for valuations or the legal fees to sell to them as a quick sale paid it all. They did pay us £8k less than other houses the same as ours on our road were selling for but it saved us a lot of hassle with estate agents etc and we were able to rent back from them until our new build was ready to move in to so it was much more flexible than selling to a normal buyer. I would avoid any companies that ask you to pay anything upfront like valuation fees etc.
In our case, they were actually able to rent the house to us for less than we had been paying on the mortgage so they may even be ale to save your friend some money (although with the recent interest rate rises, maybe not). It's not nice to sell your house for less than the market value but if its the best option for you then it may be worth it. I agree that you should get advice first to find out what all the options are and then decide on what is best for you.

Hope this helps.

Taliwillow

Will.Power_2

Taliwillow, your circumstances appear very different from Masueuk's friend, as you were after a short-term solution.
I assume the purchaser would be granting a shorthold tenancy, so there's no obligation upon them to renew at the end of the period. If they don't, you lose your home!
The purchaser may be funding the transaction by mortgaging the property. If the company fails, the property will be re-possessed; you lose your home!
As I said before: Citizens'Advice Bureau, and CCCS

terriblesaver

On a positive note you may find a local property investment company that is not a parasite that may be able to help you - these are not neccessarily companies that advertise these services but someone you could approach directly.

rog2

masueuk wrote:

Does anyone have any knowledge of the type of companies who buy homes to rent back to current owner. My neighbour and her husband are splitting up and she doesnt want to move at least for now, because of needing stability for the kids. They have a ton of debt. She was going to approach the housing association who own many properties around here. I had a look online and found a load of companies who apparently buy your home for between 75% and 90% of current market value and you then rent it from them. Some of them are national home buyers, A Quick Sale etc. She will need to look into all options, but wondered if anyone here has experience good or bad (instincts tell me bad is likely to get more !)

Isn't this how the dreaded 'Richard Hillman' made his money on Corrie (sorry I am a sad addict)? But, given your neighbour's circumstances, she could be 'easy prey' for unscrupulous predators, although, as mentioned not all such companies are unscrupulous.
But, BEFORE EVEN SPEAKING WITH THEM, get her to CAB as soon as possible.

BestFootForward_2

masueuk wrote:

(instincts tell me bad is likely to get more !)

taliwillow - I second that!

To get an informed opinion, look on http://www.singingpig.co.uk/forums/41/ShowForum.aspx. This is an excellent site and well respected in the investing community.

The companies work on a BMV (Below Market Value) principle. I have meet several people who do this very thing, and, generally, they are a decent bunch. Often these guys will refer people to Payplan, CAB etc if more appropriate.

People have listed valid concerns here. But, in the end of the day, they are just concerns. What you need are facts, and singingpig can help.

I quick note about A Quick Sale. They have a good reputation, but they are selling franchises. Time will tell if this new strategy will affect their reputation.

Good luck, and keep us informed.