Buying and renting back.

kenshaz

I have been of late witnessing an increase in the number of television adverts (Like bees around a honey pot ) advertising buying and renting back your property ,an unregulated area and it gives me concern.

AndrewSmith

They buy at below market value (based on a valuation that the homeowner has to pay for)

They then charge an extortionate amount of rent to the homeowner.

A mugs game, steer well clear.

Lavendyr

Not to mention that many of these companies, despite their initial promises, once they've bought your house put you on a 6-month AST so in theory you are no less secure in the house than you would be in any other rented accommodation.

The whole business is without regulation and as such there are some very dodgy companies about. I'm sure there are some decent ones too but I wouldn't risk finding out.

kenshaz

This is just another loop-hole that requires government legislation to plug.The problem is the government are so slow in acting and we have casualties on route.They target the vulnerable.

Off the subject ,have you noticed our Math's expert advertising a food retail shop that she wouldn't be seen dead in,another example of moral principles out of the window and targeting the low paid and those in difficulty.OK the food is cheap ,but why does she venture into areas that she does not personally experience and endorse them.

payless

kenshaz wrote: »

Off the subject ,have you noticed our Math's expert advertising a food retail shop that she wouldn't be seen dead in,another example of moral principles out of the window and targeting the low paid and those in difficulty.OK the food is cheap ,but why does she venture into areas that she does not personally experience and endorse them.

off another forum , so I can't take credit

This is the supermarket you end up in when you realise all your disposable income is now going on loan repayments, so there is a certain synergy there

kenshaz

I am pleased to read that others are like minded and the irony of it made me smile.I wish that I had thought of that one.Those who sell their houses and rent them back will also need to shop there so beware or you might get a scare when you have not got a pray and some-one else is making a pile advertising inferior ware .

EdInvestor

Apparently some people are being led to believe "sale and rentback" is a version of equity release.

For the latter see here:

https://www.ship-ltd.org

chunkylegs_2

Are these a valid option?
Does anybody know of a company who work in a fair and honest way?
How much rent are we talking about?
Sorry to be sharp with the questions but am getting exhausted by the amount of flannel which surround financial info!

Jonbvn

I assume that silly little maths expert is the same one who also advertises the (very poor) secured loans.

The number of sh8t financial products advertised on TV is now quite staggering. To name & shame just a few:

1. Pitcture loans.
2. ING savings (up your rates & stop wasting money on advertising).
3. Insurance for funeral expenses, and they give you a free gift!

EdInvestor

chunkylegs wrote: »

Are these a valid option?
Does anybody know of a company who work in a fair and honest way?

They are suitable for people who need to sell a property very quickly, eg in advance of bankruptcy or repossession where they will lose the lot - in this case a discount for speed is quite reasonable.

They are NOT suitable for people who want to raise capital or increase their income but stay in their home. These people need an equity release plan - a lifetime mortgage (not repaid until death and capped at the value of the property) or a part sale "home reversion" plan, see link above for respectable providers.

Using Sale and rentback instead will mean they receive substantially less than the market value of their home and have no security of tenure after six months.

Definitely a lose-lose proposition.:mad:

silvercar

I agree with Edinvestor' sentiment.

Though being about to go bankrupt should mean that these companies won't touch you, as the Official Receiver has the power to set these transactions aside, as the seller has effectively given money due to creditors away to the quick-buyer.

If someone is about to be repossessed they may be better advised to sell on the open market or at a low market price, or at auction, rather than give away 20% of the property value.

For some the loss of "social- standing" and the ability to stay in your own home may make the option worth looking at; though it begs the question as to whether this is just a way of sticking your head in the sand for longer.


As others have said this is an unregulated area with many sharks. "A quick sale" are meant to be a company with integrity in the field. If you want to see it from the view of the quick-buyers, pop over to singingpig.co.uk where some hang out. Though, just like any other forum, don't believe everything you read.