Strange House offer

mrlucky

Hi, I’ve had a terraced property on the market for a year, I’ve been approached by someone who has offered more than asking price to be paid in 5 years time, they have offered to take on the mortgage and bills until then. I’ve never heard of this before, is it legal, has anyone had or know of this kind of offer?
Thanks
Geoff

AdrianC

Perfectly legal... They would be your tenant, paying you the equivalent of the mortgage for the next five years. You would be a landlord, with all the legal responsibilities and liabilities implicit in that. You would need to pay income tax on the rent.



And what happens in five years when they say they can't buy it? Or they just need another year?

Reduce the price.

Browntoa

It's got scam written all over it...

davidmcn

It's come up here before. Legal, sort of, probably on the basis you don't let on to your mortgage lender what's happening. Run a mile.

G_M

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eddddy

Presumably they want you to move out - so where would you live for 5 years?

If you have a mortgage, your lender will not allow this.

This is probably a 'rent to rent' scam. For example:

• The person pays you enough to cover your mortgage etc - say £500 per month.

• They turn the house into a kind of hostel - perhaps partitioning rooms to get more beds/people in etc - and get an income of , say, £1500 per month

• After 5 years (or maybe less if their business plan doesn't work) they tell you they no longer want to buy your house after all, and return it to you in a wrecked state.

jonnygee2

Mortgage + Bills = below market rent for 5 years.

House price today = (likely) below market value in 5 years time.

What's to like?

diggingdude

I wouldn't even consider that sort of offer

Mutton_Geoff

Did the offer come through your agent? Have they qualified the buyer? For reasons above I wouldn’t touch it but your agent shoukd be advising you against it.

FreeBear

eddddy wrote: »

This is probably a 'rent to rent' scam. For example:

• The person pays you enough to cover your mortgage etc - say £500 per month.

• They turn the house into a kind of hostel

Or... They make payments to the mortgage company for the first few months and then stop. Meanwhile, they are running up huge debts in your (the OP) name and/or using the property for nefarious activities - A cannabis farm springs to mind).
The mortgage company starts repossession proceedings, and chase you for the shortfall along with the huge legal bill. Other lenders pop out of the woodwork claiming you owe them thousands and the police are building a thick file on you.


If it looks like a scam, then it probably is - If they haven't got the money to buy the property today, they certainly won't have it in five years time.

middleclassbutpoor

If there was a safe way of monetising a different way to sell a house, I think someone would have cornered the market.

This appears to have far too many downsides and not many up sides.

I would like to also say if it's too good to be true, it often is.. Not sure if this qualifies for this other than they may be offering you, on face value, a guaranteed value in the future but if they can't afford to buy now, its unlikely they will be able to afford more in the future - unless they are in a profession which explains their belief in this - i.e. an accountant, solicitor, doctor type role.

Leave well alone and sell in the traditional method.