Help needed..Sell & Rent back Schemes??

ManAtHome

Anyone getting 5% out of it is quite likely to want to sell up quickly - you can get that from a savings account with no (landlord) liabilities...

clutton_2

A landlord has immense legal difficulties with offering a Tenancy Agreement for more than a year or two, as the property is, actually, owned by the Lender who will need immediate possession if the Owner defaults on his/her mortgage.

This is why rentback is not a secure future - but then neither is any private rental.

scrumymummy

Thankyou,I am indeed struggling financially and am looking into the possibility of an IVA.
I'll contact my local council to see if they are one of those that offer a mortgage rescue scheme (I wasn't even aware they existed).
And will definitely be avoiding those buy back schemes like the plague.

Thank you so much for your advice everyone, I was beginning to feel like I was running out of options and rapidly going under.

scrumymummy

Just a quick update I've had a productive day and am positive of a good outcome.
My local authority don't have a mortgage recovery scheme but my local estate agent is coming to value the property and has a few local investors who would be interested in buying and having me as a long term tenant.

Also spoke to the CCCS who are helping me sort the rest of my mess out.
Thanks again guys.

paulcummo

Hi

Your forum was passed to me by my wife. I've read with great amusement from the negative brigade all the horror stories. Whilst not doubting the validityof some of these 'horror stories', as usual everybody is lumped into the same boat. Like any business, there is the good the bad and the plain ugly.

Myself and my wife bought 2 properties for BTL, whereby both tenants for their own reasons, wanted to rent from us. Because of this, we've started a business buying homes for 90% of their market value whereby we rent back to the previous owner. We pay the conveyancing fees and when you take the fact that there are no estate agent fees, moving fees, maintenance etc and the fact they get to remain in their own home (something that a lot of the negative brigade who say just sell seem to miss is very important to a lot of people) then this is a very good deal. We are building a long term portfolio so as far as we are concerned, the longer they stay the better.

Like anything, do your own research. It really is easy to find out what your home is worth with 5 minutes effort on the internet. If anybody really is selling their home for 70% of it's value, then they are foolish for not spending a bit of time finding out what it is worth, and I am foolish for paying 20% too much.

prudryden

As Paul says, 10% below EA estimate is good value and well worth holding out for. They may want a higher return than 5% Gross return on the rental, however.

scrumymummy

paulcummo wrote:

Myself and my wife bought 2 properties for BTL, whereby both tenants for their own reasons, wanted to rent from us. Because of this, we've started a business buying homes for 90% of their market value whereby we rent back to the previous owner. We pay the conveyancing fees and when you take the fact that there are no estate agent fees, moving fees, maintenance etc and the fact they get to remain in their own home (something that a lot of the negative brigade who say just sell seem to miss is very important to a lot of people) then this is a very good deal. We are building a long term portfolio so as far as we are concerned, the longer they stay the better.

Like anything, do your own research. It really is easy to find out what your home is worth with 5 minutes effort on the internet. If anybody really is selling their home for 70% of it's value, then they are foolish for not spending a bit of time finding out what it is worth, and I am foolish for paying 20% too much.

Hiya Paul Its good to hear that there are businesses out there that are not exploiting people that are very often in desperate positions.

I think people in these situations and using these companies are very aware of the value of their homes but if their home is being repossessed or they're being made bankrupt (the very people these companies target) then I guess they may feel there is no alternative.

paulcummo

I agree it's often people in the most desperate situations that feel forced into making bad decisions as they feel there is no other choice.

That's why we aim to offer people in these situations a fair deal, one that benefits them and also benefits us. We feel we can acheive all our long term aims without the need to take advantage of people, so we get to sleep at night as well.:D

Prudryden is correct in that there will always be a relationship between the price paid and the rent as whilst we don't wish to rip anybody off, we also don't wish to bankrupt ourselves. We actually reduce the rent to below market values for longer leases, giving security to both parties.

Just one word of warning. I personally wouldn't trust most estate agents as far as I could throw them. You'll notice most good deals appear sold the instant they appear on their site. That's because they all have their preferred people who all the deals go to first. Therfore, be careful with their 'recommended people' as their is usually a good reason they get recommended. Not for me to say they'll have give them a nod and a wink about your situation allowing them to make an an offer accordingly for a little bonus.

Good luck with your sale. I hope you find the right person. But as with anything, do your own research and use your own gut feeling.

realwildone

Your forum was passed to me by my wife. I've read with great amusement from the negative brigade all the horror stories. Whilst not doubting the validityof some of these 'horror stories', as usual everybody is lumped into the same boat. Like any business, there is the good the bad and the plain ugly.

Myself and my wife bought 2 properties for BTL, whereby both tenants for their own reasons, wanted to rent from us. Because of this, we've started a business buying homes for 90% of their market value whereby we rent back to the previous owner. We pay the conveyancing fees and when you take the fact that there are no estate agent fees, moving fees, maintenance etc and the fact they get to remain in their own home (something that a lot of the negative brigade who say just sell seem to miss is very important to a lot of people) then this is a very good deal. We are building a long term portfolio so as far as we are concerned, the longer they stay the better.

Get real. Thats not the way to base any business. You can buy much cheaper properties from auction. We are currently buying and have offered 20% and 10% less on all the properties we wissh to buy and 2/3rds have accepted. You could not base a business on purchase of 10% less than marketvalue. You can get that now.

prudryden

realwildone wrote:

Get real. Thats not the way to base any business. You can buy much cheaper properties from auction. We are currently buying and have offered 20% and 10% less on all the properties we wissh to buy and 2/3rds have accepted. You could not base a business on purchase of 10% less than marketvalue. You can get that now.

It's a different business then yours. You have many more variables to contend with.