I am going to sell my house and rent it back.

Rikki

Wow the threads grown while I was looking and others had more luck than me in finding info.

chevalier

I have never heard a positive outcome from this type of scheme EXCEPT where the house was bought by a housing association. But I don't think they do this anymore.

I have heard of quick sale merchants ie companies that are cash buyers. But that was just selling the house asap, with no renting it back bit. That worked for a friend of mine. They wanted to sell quickly because they would loose the house they wanted to buy if they didn't.

Ref your situation. You say you can't work full time. Ok some options.
1) Can you really pester your GP to get you referred asap for physio/other treatment, so that you can work full time again. Sometimes you have to be a pain in the a**e to get help
2) If your physical situation is never going to improve, then can you get DLA?
3) Can you retrain to do something that isn't as physically difficult. Ie office work, it, etc?
4) does your wife work, can she start?
5) When you are not working can you make money another way, ie doing surveys online, mystery shopping etc?
6) Do you have children? Getting working families tax credit? Have you told them about your drop in income? May mean you get more.

Now is the time to do a financial health check too.

So check your credit reports (free if you go via www.quidco.com just remember to cancel the direct debit before the end of the free trial), to see what you score is. If it is good, then maybe you can remortgage even being honest if you asked for it over a longer term?

Is your house, contents, car, life insurance, gas, electric, telephone, broadband, sky/cable all the cheapest they can be?

best of luck with sorting this
chev

Gorgeous_George

ASTs can last for anything from six months to three years. These companies probably stick to the six months AST.

Look at it from the company's point of view. They want to maximise their profits. To do this do they:

A.
1. Buy your home for around 70% of its likely market value.
2. Give you a six months AST followed by notice to quit.
3. Sell for 100% of the market value.
Profit = 30% of market value in less than a year

or

B.
1. Buy your home for around 70% of its likely market value.
2. Give you a six months AST and allow you to stay indefinitely at rent around 6% of market value.
Profit = maybe 1% or 2% of market value per year with the hassle of having tenants.

BEWARE OF THE SMILING ASSASSIN.

Have you considered putting the house into an auction? Get your money, clear your debts and rent privately until the market falls (if you believe that it will fall).

GG

Emmzi

Mr Spangle,

these companies tend to offer quick sale at around 70% of house price.

If you dropped your price by say, 15%, offered fixed price, could it shift quickly? Would a buyer on the books help stall your debt collectors? You'd be 15% better off.... which may be enough deposit to secure a decent rental place.

rayday2

As I said before I worked in an estate agents that did rental and sales, even a 6 month assured tenancy agreement can be broken it is usually written in with about two months notice (these agreements can be altered so you must read them cover to cover before you sign you will be amazed at what is in them!)

I would contact both the mortgage and secured loan people explain your situation and see if you can pay interest only for a while. In the meantime look into other options, change of work, change of people working etc etc

The more you talk to companies and experts the better.

Think of all the hours you have worked to pay the mortgage you have so far, do you really want to give all that up so soon, for someone to come along and make a quick buck with at least 30% payback?

rayday2

Sorry another quick thought, have you double checked you are getting all your benefits, may be worth a telephone call to double check with tax credits etc there could be a little more in the pot than you think.

Sagaris

Please don't do it!
My OH's old next door neighbour did this last year, she got way below the market value and she's now very scared that the bloke that bought it from her is going to chuck her out - he's even been round the house measuring up!
I've never seen a 'happy ending' from any of these companies - only misery.

chookwoose

Rikki wrote: »

This was mentioned on television this week. (Racks brains to think of program)


It ended in disaster for the lady concerned. The company she sold to passed it on to someone else and they never paid the mortgage. The home was reposessed by the bank and the the lady was then homeless. The home remains empty, has been vandalised and the lady is devostated.

Please if you consider this option be very careful and research the company fully. Dot the I's and cross all the T's.

Was it BBC Watchdog 10th October?
http://www.bbc.co.uk/consumer/tv_and_radio/watchdog/reports/consumer_goods/consumer_200710102.shtml

Coolmum66

Hey Mr Spangle

I really feel for you and the situation you're in.

Can't offer any advise re selling your house as have never managed to buy one!! However, I have rented for years with no probs. Always explained that I've got a child and would like to renew after the 6 months. Most of the local agents round here will take pets (you may have to pay a bigger deposit and get the house fumigated (?) when you move out.) Most tenancies are for 6 months, but I've always found the landlords to renew them. Try and find a landlord that's bought the property as a retirement investment of something like that.

I hope this doesn't confuse you more - just wanted to let you know what I've found to be available

Wishing you all the best hun

Coolmum x

Eos

This happened to a friend of mine recently. He was going to sell to one of those companies, but couldn't even get enough off them to cover his debts. In the end he admitted to his friends what was happening, and I fortunately had another friend who wanted to get another buy to let property. He didn't get full market price because of time pressure, but he did get enough to clear his debts.
A lot of small buy to let investors would be glad to have an instant tenant, but you may have to drop your price to get a fast sale.