Selling my house and renting it back.

prudryden

The buyer is making a quick 25% return in addition to the rental income after one year. The buyer must find it hard not to cash in with those kind of profits after one year. I guess I would be cautious - but then I don't the history of the company.

jessie-jane

Hi, we sold our house this year and are renting it back for at least the next three years, as our landlord took out a three year fixed rate mortgage if we what to rent longer then we can but the rent will then have to be re negoitioated as at the moment it is fixed for us . If however we would like to buy the property back at any time we can at a discounted 90% price, we are happy with this agreement and it suits us but it is not something to enter into lightly.

pinkshoes

At the end of the day, people who buy houses then rent them back are in it to make a profit.

If you're willing to sacrifice a large quantity of your home equity just so you can continue to live in your home for an unknown period of time, then that's fine, but often it might be worth considering the alternatives i.e. a quick sale for just below the valuation, then finding somewhere else to rent.

nifferwilko

You do need to understand the implications of this though.

On the local news on Friday, and they sold their house & rented it and now they are being evicted. Perfectly legal as they only signed an AST for 6 months but didn't quite grasp what they were doing

Here's the video link

http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6710000/newsid_6713800?redirect=6713841.stm&news=1&bbwm=1&nbram=1&bbram=1&nbwm=1

tiny1

I have some family members who have been in the "rent back" property investment business for many years.

IMHO there are positives to a "rent back" scheme :
Clear debt
protect credit history
Stay in your home
no removal / start again costs
probably will not find the same "quality" of property on the rental market
rent tribunal office to protect your rights
buildings and maintenance costs covered by the land lord
family / children / nieghbours need not know

I would say "shop around" there are a very large number of such "rent back" schemes out there - choose wisely

tiny1

calmspirit

Hi
you should also note that, as I understand it, local authority will not pay housing benefit for rent on a house that you previously owned. This seems to be the case where I live anyway........I would be interested if this is not the case elsewhere?

real1314

silvercar wrote: »

You could get housing benefit to pay the mortgage interest though not the capital.

check you are getting all the benefits you are entitled to.

https://www.entitledto.co.uk

HB doesn't pay mortgage interest. AFAIK the only benefits that pays mortgage interest are Income Support or Pension Credit Guarantee Credit.

suelongman

jessie-jane wrote: »

Hi, we sold our house this year and are renting it back for at least the next three years, as our landlord took out a three year fixed rate mortgage if we what to rent longer then we can but the rent will then have to be re negoitioated as at the moment it is fixed for us . If however we would like to buy the property back at any time we can at a discounted 90% price, we are happy with this agreement and it suits us but it is not something to enter into lightly.

hi only just aloud back on computor as son has gone to school. read your post are you happy with your arragment is the rent high and if you dont mind who did you go with you might have to answer this in a private message not sure althogh i am sure there might be a few peeeople interested

courtjester

JuliaL wrote: »

We just can't afford the morgate and loan anymore, but we have pu t so much into this house and it's been adapted because my partner is disabled it will be hard to find another property the same. We only have the guarantee on paper.

There are a couple of specialist sites for disability home sales.

You might want to look at https://www.accessible-property.org.uk who specialise in adapted homes. They offer free advertising for such property. They can connect you with buyers interested in adaptations in which case you will get a better return on your investment in the property and you can search for something matching your own needs.

Another site worth looking at is https://www.mobilityfriendlyhomes.co.uk

jessie-jane

Hi Suelongman, not sure how to do a private message, we are very happy with this arrangement as we are paying the same in rent as we were in the mortgage but would not be able to rent or buy another property of same standard for this price.

We used a local well established company who have been trading for approx 15 years at least in the local area so dont know if this would be of any use to you.

I would just like to say also that not everyone sells their home and rents back to make a profit, unfortunatley we had debts and this was our only solution apart from going bankrupt where we would have had our home sold from us and then been homeless so please dont think we are totally happy about this situation it just happens to suit our needs for now but who knows what the future holds.