Selling a house with a tenant

vikki100

Hi, I hope someone can point me in the right direction with a problem we have. My husband bought his family home when his dad died with the view that his mum should stay there for as long as necessary, she is 85. He pays a mortgage payment and we do not receive any payments at all from her for living there. My name is on the mortgage of our home and since buying our home, we have had two children and we have both been made redundant but found new lower paid employment. We have struggled on as far as we can with paying two mortgages but are at the point where we just can't go on. We realise that trying to sell the property with my mother in law living there will be impossible so were thinking about one of these companies who buy and then rent back. Has anyone had any dealings with them and which company is the best to use. Also, if anyone has any other ideas about what we could do, I would be really grateful.
Thanks.

beecher2

The most important thing here is to protect your mother in law's interests. Have you had a discussion with her about the best way forward?

Conrad

Buy and rent back will have fatal consequences for many npeople. The reason is that the assets (ie the nproperty) can be repossessed by the companies creiditors should they fail, meaning your Mum in law would be homeless.

Have you considered other options such as;

Temporarily converting either / both mortgages to interest only?

Equity release in Mums name - with her as new owner and use as beneficieries?

Selling her home and have her live with you! Personaly I like the way Latin people look after thier old folk at home despite any inconvienince.

There are other oprions too.

Find a VERY GOOD and honest broker and get some ideas going. Beware smooth talking sales types - they may stitch you up with bridging finance and all sorts.

vikki100

Thanks for your reply - having her to live with us is not an option, we only have 3 bedrooms but I am very interested in the equity release idea, how would I do that?

Thanks.