sell house and rent back

worrybegone

Hi has any one had experience selling house to a company and renting it back

Nargleblast

No, but I think it sounds risky. At any point your new landlords could sell the property to some random third party who could then decide to evict you so they can sell the property on or put their own choice of tenant in instead.
Also the amount you would get for the house would be way below the market value. There may well be reputable firms out there but I doubt it. If anyone has a sell and rent back story with a happy ending I would be interested to hear it.

Pixie5740

These schemes are regulated by FCA and you should be given at least a 5 year fixed term tenancy. That's not to say these schemes aren't risky, because they are, they are still very risky and you have to be very clear about what you're signing up to.

http://www.adviceguide.org.uk/england/debt_e/debt_mortgage_problems_ew/debt_how_to_sort_out_your_mortgage_problems_e/sale_and_rent_back_schemes.htm

FireWyrm

Oh there are some horror stories about this. People who sell the house to rent back and then end up being evicted within months on a S21 (no fault notice).

Why are you even contemplating this course of action? There are better ways to raise capital and pay off debts. Post an SOA and let us take a look to see where you can cut back.

National_Debtline

Hi

We generally advise that using a sale and rent back company should be a last resort.

In addition to risks to security of tenure in the long term, there is also the issue of sale price. You are likely to get a much lower price than market value if you use one of the sale and rent back firms.

As Pixie says, these firms are regulated by the FCA now so not as bad as they were but still risky, especially after 5 years.

The FCA rules are here :

www.fca.org.uk/firms/financial-services-products/mortgages/sale-and-rent-back

Also, as FireWyrm says there may well be other options for you to deal with a financial issue if you can tell us more about your situation.


James
@natdebtline