QUICK SALE SCHEMES: Are they any good?

EG57

I live in a horrible council estate. I am thinking of moving elsewhere in my area (Lewes, East Sussex), but houses around here are very expensive and I don't have the money.
Returning to Italy, my country of birth, would be an option, but my partner, who grew up in the neighbourhood, is reluctant to do so.
However, we may have to sell and relocate regardless, as we have an interest only mortgage which will need to be settled by 2021.
Luckily, the equity is good and I have no debts.
Renting out is not an option as my house needs lots of repairs, which I can't afford, as I have no savings and have recently lost my job.
Downsizing seems difficult, as we could easily end up in a grotty one bedroom flat.
Equity release schemes sound dodgy. Are QUICK BUY SCHEMES the solution to our problem?
Any alternative suggestions? Thanks, EG57

chris_m

Depends on how good your equity is - if it will only just cover repaying the mortgage if you sell at market value, I doubt that a quick buy company will offer nearly so much in the first place and even less by the time they've knocked you down even further just before completion.

Pixie5740

If you think equity release schemes are dodgy then Quick buy schemes are blood sucking leaches. They don't do anything you couldn't do yourself but will charge you for the privilege.

Just because your house is in need of repair and is perhaps not in a great area it doesn't mean there ins't a buyer out there for you. If you are not in an immediate rush to sell, get 3 estate agents round to value the property, then either pick 1 or choose to market the place yourself, put your house on the market and see what happens.

If you are in a hurry to sell then put your house up for auction. That's pretty much all a quick buy scheme will do except they'll skim a large chunk of money from the sale. Better in your pocket than theirs.

If you can't buy in Lewes or East Sussex would you consider renting until you find another job and your finances are more stable?

katipip

I have heard many stories where QBS essentially rip their customers off.

They offer you £x amount which you think is fair so you accept and progress with the sale (and, in many cases, the purchase of your new home).

Days or hours before contracts get signed the company cancel their offer of £x and offer you £x - £10,000 as apparently the value of your home has just fallen!!!

This leaves you between a rock and a hard place - do you continue with the sale at a loss of £10,000 but at least still hang onto your new home or do you pull out and lose money spent on solicitors, surveys etc.

Others may have positive stories but this is a "heads up" for many.

densol_2

I agree with the above. a house will sell quickly in normal selling conditions if it is priced right. So get some valuations for quick sale then decide how low you want to go to get rid of it quickly.

eddddy

Sadly, Quick Sale Companies don't do 'magic'.

They just get a quick sale by selling your house really cheaply. And they take a huge chunk of your money for doing it.

You can get an equally quick sale by selling your house really cheaply through a standard estate agent. But they will take a much smaller chunk of your money.

G_M

I'm too bored by the repeated requests on the forum for advice on these rip-off schemes to say more than that I'm too bored by the repeated requests on the forum for advice on these rip-off schemes......

Davesnave

katipip wrote: »

....this is a "heads up" for many.

Apparently, judging by the number of times this comes up, but these people must also believe in penny shares, pyramid selling schemes and the Tooth Fairy.

However, they don't seem to believe in Google!

EG57

Thanks for all your suggestions. I am aware that QBS are kind of dodgy, only I didn't know how they really operated. I shall take that into account when the time comes. The equity on my house is about £ 120.000. The interest rate is quite low at the moment but there are signs that it might go up by the end of the year. Also, the current trend in the rise of property value is bound to end sooner or later. What really worries me is my partner, who favours a "wait and see strategy", while I prefer a more proactive "do it now, before it's too late" one. Having lived in the UK for large part of my life the option of returning - at 58 - to Italy, with all its problems, is a risky one. Then there is also the question of whether I would qualify for pension credit - currently accessible at 62 - after I have gone back to Italy. Perhaps I worry too much, but finding work at 58 is hard and I don't fancy living on benefits, given the current economic and political climate. I am also considering the “Drawdown lifetime mortgage equity release plan” option, which, apparently,... " allows you to stay in your home and to release tax-free money that is tied up in your home, which can then be spent on whatever you choose. With a Drawdown Lifetime Mortgage there are no regular repayments to make and you continue to own 100% of your home”. More interestingly, “rather than just receiving a lump sum, you have the option to release your cash over time, as and when you need it. This means that you can accrue a reduced amount of interest. The total amount that you have borrowed, plus any interest accrued, is only repaid once you pass away or permanently vacate the property e.g. move into long-term care.... ”. Sounds interesting, don’t you think. Has anybody heard of this?

Davesnave

At 58, unless you have serious health problems, you are a bad bet for any annuity scheme, regardless of how it's disguised, so rates will be pants.

Good Lord, you could still be posting here in 35 years time!

eddddy

EG57 wrote: »

...“Drawdown lifetime mortgage equity release plan”
...Sounds interesting, don’t you think. Has anybody heard of this?

Yes.

It's basically a mortgage, but you don't make any repayments - so the interest just accumulates.

So in simple terms, you end up paying interest on interest - so it snowballs.

You end up owing much more than you borrowed, and it will be paid off when the house is sold - either when you die or go into a care home. How much they will lend is based on your age, your health and the value of your house.

Obviously, one consideration is that there may be very little left, or nothing, to give in your will.

In my opinion, there is a choice of bad schemes, and very bad schemes - so talk to an independent financial advisor before making any decisions, to help you find the 'least bad' scheme.

Edit to add...

And as Davesnave says, if you're aged 58, I suspect you will be very disappointed with what they offer - because they will assume you have many more years to live, so it will be many years before you repay the loan.