Sell to rent?

trapped_in_high_interest

Hello,

We are thinking of selling our home to one of the companies which advertise sell to us and rent it back.

The sites are https://www.4weeksale.com and https://www.chasemorganhomes.co.uk. If we sold our home and rented it back we could then use the equity to settle all our outstanding debts.

But, I worry that this could be some sort of scam has anyone done this or know of someone who has and can explain pitfalls.

Cheers

prutter

I don't believe this is a scam, as I've heard of people doing this before. There was a girl on spendaholics on TV who did the exact same thing.

You need to think about this carefully as you'll essentially be losing your home - even though you're staying put and renting.

I'd also want to know what kind of term tenancy agreements they offer. You don't want them serving you notice 6 months down the line....

trapped_in_high_interest

Hi

From the looks of the website they may only offer 80% of what the house is worth and there would be a short hold tenancy agreement?

prutter

trapped_in_high_interest wrote: »

Hi

From the looks of the website they may only offer 80% of what the house is worth and there would be a short hold tenancy agreement?

Shorthold is 6 months then rolling I think (someone will correct me if I'm wrong).

Would you be comfortable with them being able to kick you out after 6 months? Particularly if it's a rising market, kick you out after 6 months, flog the house and pocket their 20%+ profit?

trapped_in_high_interest

Well, no... they do give you an option to buy back after 2 - 5 years so I would imagine they would let you rent it for this period. During this time we should receive a large inheritance which would include a bungalow worth about £230,000 so we were thinking that we would sell that to buy a home in future.

At the moment just want to clear all our debts with sale of house but would like to rent it back so could stay there.

prutter

If you'd eventually move from where you are anyway, why not sell normally, and rent elsewhere?

Which is worth more, the 20% extra profit you'll gain by selling yourself, or staying in your current property?

glynster_2

i am interested in this subject as an advert on tv at the minute guarantees you 100% market value, and then rent back.
Is anyone in the know here please?

trapped_in_high_interest

There is no where to rent near here all home owners plus want a quick sale to clear debts. Do not want to keep uprooting kids by moving from rented property to rented property. Would not move for at least 12 years.

my_gorgeous_ellie-belle

I doubt very much that you would get 100% as that would defeat the object of the quick sale - i mean what do they gain? Personally i think you would be better putting the house on the market than taking this option (80% sounds more realistic of what they will pay) but im no expert - hopefully someone will be by soon to give you informed advice.

trapped_in_high_interest

Who is the company advertising this gynster?

my_gorgeous_ellie-belle

sorry we posted between each other - i understand what you meen now.