buy your house full market value

tali

noticed lots of ads claiming to buy your house for its full market value guaranteed, you stay as long as you want paying rent, and you have right to buy back- sounds all very good- whats the catch? as i remember National Homebuyers exposed for shabby rip -off surveys and grossly undervaluing properties
are the rents or the buy back prices extortionate? or something else

Doozergirl

You don't get full market value. They use a strange phrase that sounds like full market value but isn't.

ehs_3

tali wrote: »

noticed lots of ads claiming to buy your house for its full market value guaranteed, you stay as long as you want paying rent, and you have right to buy back- sounds all very good- whats the catch? as i remember National Homebuyers exposed for shabby rip -off surveys and grossly undervaluing properties
are the rents or the buy back prices extortionate? or something else

Hi tali

Do you remember who the ads were from?

Thanks
ehs

dippy-dora_2

i've been looking into this tonight.
Now the way I would go about is choose an estate agents who do this AND sell the conventional way.
First get an evaluater in as if you are going to sell the normal way - then ask how much they will buy it off you.
My local estate agents does both and i plan to do this - i bet they wouldnt offer the first price they gave though! But... at the same time sometimes that quick sale is worth the bit loss.

nelly_2

I read a post on here saying the average they pay is 75% of the normal value. ???

After all they are businesses and need to make money

suffolkb

I seem to remember reading something along these lines:
Your house worth (say) £200,000
You pay them £2000 to value your house.
They offer you £150,000
You say get stuffed.
They keep the £2000.
Be very wary.

Dithering_Dad

dippy-dora wrote: »

i've been looking into this tonight.
Now the way I would go about is choose an estate agents who do this AND sell the conventional way.
First get an evaluater in as if you are going to sell the normal way - then ask how much they will buy it off you.
My local estate agents does both and i plan to do this - i bet they wouldnt offer the first price they gave though! But... at the same time sometimes that quick sale is worth the bit loss.

Why would you want to sell your house at less than market value and then pay rent to live in it? Surely whoever bought the house would charge rent that is related to what the house cost them (otherwise they would end up going broke) and so the rent may cost as much as what you were originally paying in mortgage repayments.

If it is a case of having overstretched yourself on the mortgage, then surely either downsizing or switching to an interest only mortgage for a while would be the better options?

Confused!! :undecided

bobstheboy

I can understand why someone (me) would want to sell and rent back.

We have no immediate family, I am retired, my wife is not in the best of health and relatively young (49) so we have no one we want to leave the house too. My only concern is that I want to stay in my house and there are no guarantees of tenure.

Bob

Dithering_Dad

bobstheboy wrote: »

I can understand why someone (me) would want to sell and rent back.

We have no immediate family, I am retired, my wife is not in the best of health and relatively young (49) so we have no one we want to leave the house too. My only concern is that I want to stay in my house and there are no guarantees of tenure.

Bob

Yes, sorry. This is one case where it would make sense - to release money to fund a retirement if no other pension provision has been made.

bobstheboy

Dithering_Dad wrote: »

Yes, sorry. This is one case where it would make sense - to release money to fund a retirement if no other pension provision has been made.

I didn't say that !

I have a very good pension but what is the good of equity in the house when you have no one to leave it to ? You are only here once and may as well enjoy any money we have.

Bob

Dithering_Dad

bobstheboy wrote: »

I didn't say that !

I have a very good pension but what is the good of equity in the house when you have no one to leave it to ? You are only here once and may as well enjoy any money we have.

Bob

For the very reason you stated:

"My only concern is that I want to stay in my house and there are no guarantees of tenure."

If you can afford not to do an equity release, then I wouldn't do it. Speaking personally, when I retire I will (barring a catastrophic stock market crash) have enough to fund a comfortable retirement. I will downsize to release equity and because we certainly won't want to rattle around in a 4 bed family home.

What I would never do is sell my house and then rent it back, for exactly the same reason as yourself. When I'm in my declining years I don't want any worry of hassles about whether I'll be able to stay in my own home.

As far as leaving equity in the house, you can either leave it to charity or (more likely) use the money to fund your occupation of an old folks home or sheltered accomodation if the need occurs.