Selling and Renting Back

bobstheboy

I am considering selling my house and renting it back .

There are several companies that offer these schemes and I am hoping there is some good advice from members. I am aware that these companies usually offer about 80% of the value but there are no legal or estate agents fees. My main concern is that I want to stay in my present house long term. All the T&C's I have read only guarantee 6 months short term lease.

My main reason is my wife and I have no relatives to leave it to and want to enjoy our money while we can. I am 61 and my wife is 50 but not in the best of health. I have a good pension and could afford to rent easily.

Bob

xlesleyann

Where about are you?

My mum has just done this, we are in Fife, Scotland. The company she went through are happy for her to stay in it long term. I think it depends what they are planning to do with the property. They are happy not to sell my mums property as they are making the rent money off it, they have other houses they have bought and sold on.

lynzpower

xlesleyann wrote: »

Where about are you?

My mum has just done this, we are in Fife, Scotland. The company she went through are happy for her to stay in it long term. I think it depends what they are planning to do with the property. They are happy not to sell my mums property as they are making the rent money off it, they have other houses they have bought and sold on.

but then without being too dark-side, it also depends on the age of the person. the younger they are the less likely the co will be able to commit to them being able to stay long term.

wecanhelpu

To get some other ideas, have a look at this article.

http://www.thisismoney.co.uk/help-and-advice/advice-banks/article.html?in_advicepage_id=119&in_article_id=395445&in_page_id=90

bobstheboy

wecanhelpu wrote: »

To get some other ideas, have a look at this article.

http://www.thisismoney.co.uk/help-and-advice/advice-banks/article.html?in_advicepage_id=119&in_article_id=395445&in_page_id=90

Thanks for your reply. Unfortunately this type of scheme is not suitable for us, my wife is too young and I do not want to just release some of the equity - I want it all !!

Bob

wecanhelpu

Well, 80% anyway

ehs_3

Hi Bob

The honest truth is that it is very unlikely that any landlord will be able to give you a 100% guarantee you can stay in your property long-term.

Many investors who offer the sell and rent back option will genuinely want you to be a long-term tenant as long as you maintain rent payments. However, the inevitability is that once you sell your property you do lose ultimate control, so there is not a 100% guarantee, though many will genuinely want you to stay forever. There are a few bad eggs as ever in any industry so you must ask a lot of questions of anyone who makes you an offer and be sure you are comfortable with them. There are many good stories though too.

It all depends how much you absolutely want to stay in your existing house. If you need a 100% guarantee then you need something along the lines of equity release or a reversionary mortgage. You must get proper financial advice if you are considering this type of thing though.

clutton_2

the one company which acts in a totally ethical manner is A Quick Sale - i know their managing director, and he runs a very good business. They look for "win-win" solutions so that every one is happy. But, as a tenant, you cannot be given long term residency commitments in law - sadly that is the risk you take. Can you not remortgage ?

theGrinch

bobstheboy, where are you located?