Sell and rent back?

littlun

Apologies if there is a discussion of this elsewhere - I couldn't find one.

Currently the equity in our house is about equivalent to our debt. The best thing for us to do in case of a property price crash is probably to sell and then rent, but we don't really want to do that (I won't list the reasons here).

I saw an ad in the local paper for one of those "we'll buy your house for cash" companies with an option to rent the house back. That sounds perfect for us, but I imagine there's a catch.

Has anyone done this? What are the disadvantages? (I assume they don't pay full value and perhaps the fees are excessive?)

Thanks

littlun

A_Nice_Englishman

See this thread
http://forums.moneysavingexpert.com/showthread.html?t=578204

littlun

Goodness, how did you find that so quickly?! Thank you

Browntoa

and this

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=425372&in_page_id=8&ito=1565

and this woman lost her home

http://www.itv.com/News/tonight/episodes/Ilostmyhouse/default.html

dolce_vita

And have a look at this article
http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=425372&in_page_id=8

Generally, the people that run these schemes are lying thieves and are best avoided.

rog2

Another good link - this time to the BBC 'Watchdog' Site:

http://www.bbc.co.uk/consumer/tv_and_radio/watchdog/reports/consumer_goods/consumer_200710102.shtml

Would you believe it, but one 'repossession stopping' company actually puts a link to this in their own website.

moneysavinmonkey

I'm missing something here... but why do you need to sell?

Debt_Free_Chick

littlun wrote: »

Currently the equity in our house is about equivalent to our debt. The best thing for us to do in case of a property price crash is probably to sell and then rent, but we don't really want to do that (I won't list the reasons here).

Not sure I agree with this.

In the event of a price crash, all that happens is that the amount of equity you would realise if you sold, might not cover the debt.

But if you have no need to sell, you simply sit tight and "ride it out".

There is nothing that compels you to sell when prices are low.

If you want to release equity to pay off your debts, then you are best doing this when the market is high & buoyant - not when it's low & depressed.

Can you pay the debts, come what may? If so, then forget about selling to pay debts as the property market is, at best, having a reality check at the moment.

If you can't pay your debts, then there are many other options and the Debt Free Wannabe would be your first point of call.

HTH

Debt_Free_Chick

moneysavinmonkey wrote: »

I'm missing something here... but why do you need to sell?

Not sure you are

Unless we're both bonkers :rotfl: