Home buying/lease back schemes

homeworkgirl

Hi, saw an ad in my local paper today which seemed almost too good to be true. It was advertising a company who will buy your house from you at CURRENT MARKET VALUE and lease it back to you with a guarantee that you can buy it back from them at any time in the future. I have looked into selling my house to a housing association before but I could not believe that they keep all the equity in the property and then you have to pay rent to them as well, I think thats really going a bit too far just so that you can stay in your home.

Has anyone on here looked into any of these home buying/rent or lease back schemes. If so I would be grateful for any info.

Redbedhead

They seldom actually pay anywhere near current market value. I believe current market value is determined by one of their valuers anyway. It is generally about 75% to 80% of market value.

If they did it at market value, particularly in the current market, how would they make their money?