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

Mr_Spangle_Pants

i tried the insurance angle, PPi is worthless when you are self employed.

itsarichmansworld

Try speaking to the mortgage company aak them if they will accept token payments like just interest till you are back in business.

I think you should see the warnings here dont lose your home.

jobbingmusician

Mr Spangle, please try again to get some decent advice about your debt. Some CABx are no use, we all know that. After all, they are run by volunteers and sometimes the quality can be variable.

If you are in London, there is a big London-wide scheme called Capitalise which provides face to face debt advice. http://www.capitalise.org.uk/page.asp?section=000100010002 will show you if there is anywhere near you to go. I am not an adviser, but I do know people who are, and I have been amazed at how they have been able to help people to reduce their debt and come to a settlement with their creditors. You can normally come to an arrangement with creditors.

Don't go to a private debt company. If you are not in London, PM me (I wonder - not promising - if it would be possible to get you some advice - even if it meant you came to London for a day. Surely that would be worth it?)

Very best of luck.

Emmzi

Mr SpanglePants, how has it gone from having spare cash to clear a default in July, to this extreme measure?

Please, PLEASE, take advice on a debt management plan or IVA from CAB or CCCS before you do this. I would hate to see you homeless by Easter because of a decision made in desperation now.

No one is advising you to think twice out of malice or spite. People genuinely care that you do what is best for you -and decisions made in haste are easily repented.

Sleep on it, and speak to one of the debt charities tomorrow?

teeni

Please try all other options before going down this rent back route, I have said on this forum before more and more people come for advice after they have sold to these characters and find after 6 or 12 months that they have been issued with a notice seeking possession.

They usually issue 6 month or if you are very lucky 12 month fixed term tenancies after which they either issue notice and evict you or they raise the rent to such a level that tenants have to leave because they cannot afford it. you are then left in the situation where you lose your home anyway but have lost a large amount of the equity. The purchases can then sell for the full value and make a lot of money that should by rights be yours

If you still want to go down this route do not sign or agree to anything until you have had all the paperwork checked by a legal advisor, and fully understand the consequences of what you are doing. you have worked hard for your home please make sure you look at all the options available before you take this drastic act.

Mr_Spangle_Pants

I lent a pal of mine £5000 for the deposit on a rental after his repossession, he has not paid me back, I always imagine that I will get it back, he wont even pick up the phone to me now. I am not looking for sympathy, and I do not want to move.

Mr_Spangle_Pants

teeni wrote: »

If you still want to go down this route do not sign or agree to anything until you have had all the paperwork checked by a legal advisor, and fully understand the consequences of what you are doing. you have worked hard for your home please make sure you look at all the options available before you take this drastic act.

I see the equity as a by product of the nations greed, it is not equity until I release it by selling, I will hit Google tomorrow and also get some more advice.

Mr_Spangle_Pants

Are there any of these firms that are in it for long term growth and not just a quick buck, my house is immaculate and my wife is very house proud, we cannot move it will finish us off.

Toto

I realise you don't want to move but I'm sure you want to be evicted after 6 months even less, especially when you've sold for peanuts. Why don't you hop over to the house selling/ mortgage board as I've suggested to see what they can come up with? I honestly think you would be so much better looking into a remortgage if you want to stay in your home.

Toto

Mr_Spangle_Pants wrote: »

Are there any of these firms that are in it for long term growth and not just a quick buck, my house is immaculate and my wife is very house proud, we cannot move it will finish us off.

From every single thing I've heard and read the answer is no. And why would they be if you think about it. George's post below says it all. Also factor in that the market sentiment is changing which is even more reason why these companies will want to offload properties quickly if the market starts to fall.

Gorgeous_George wrote: »

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