Sell and rent back schemes advice please

Need_To_Sort_It

Hello, I hoping for some advice please

Can anyone tell me if there are any reputable companies offering the sell and rent back to you scheme?

Having done a google search am I right in thinking the schemes are unregulated and possibly not very good?.I wouldn't want to do it only to find myself out of my home in 6 months cos they don't offer longer tenancies.

Has anyone done this, is it a good way to go - the reasons I am thinking of this follow.

I have an interest only mortgage, life circumstances mean I am struggling to meet the payments, I have missed a couple of payments, I'm on debt management with credit debts, I have no employed earnings and no accounts and am on welfare benefits so will struggle to get another smaller mortgage to sell and go somewhere smaller.

That said once I have cleared all my debts I would be left with max £22000 depending on what I get for the house, again this is not enough for me to go an buy somewhere cheaper, cheapest porperty for me and my family (all bedroom sharing) would be ex local authority flat at £90,000 - so I would still need a mortgage for £68000 (currently £115000 - fixed term goes up Dec 08 and payment increase even more)

Beginning to panic.

If I sell I will have made myself homeless so no council house, if I let company repossess I will probably loose money and may not be able to pay off the credit debts.

The worse thing in all of this is that if the CSA just did their job I would not be in this mess, the employer is not sending the money from the Deductions of earning order on to the CSA and the CSA dont really want to know - have written to an MP in desperation to see if they can help on that score but in my mind I know I need to forget about that money and put other plans in place.

Sorry this turned from a simple question to a life history, you can probably tell I am panicking, sorry

izzwizz_2

I can't really help, but there was an item on our local news about an elderly lady who'd been evicted after going with one of these schemes, and the landlord went bankrupt so the house was repossessed anyway. I think you need to speak to a specialist in housing - maybe at shelter? Or try the number in my sig - they're very helpful. Best of luck, Izz x

margaretclare

No advice except - don't do it!

There has been a lot of discussion about this elsewhere on Martin's site. Or look at this thread: http://boards.fool.co.uk/Message.asp?mid=10846609&bid=50079&sort=whole#10848083

HTH

Margaret

dolce_vita

The people who run these "buy and rent back" companies tend to be lying thieves and are best avoided.
They will probably only offer something like 70% of the market value and, as you say, they will more than likely want you out after 6 months so this offers no security for you or your family.

The best option is to sell the house in the normal way and move into suitable rented accomodation, after paying off your debts.

For advise about your debts have a look on the DFW forum.

best wishes

Need_To_Sort_It

Wow that was quick, thanks guys

Just looked at the info in that link and it would seem that ultimately its going to put me in the same boat as now isn't it.It looked too good to be true.

Right, now what? It was quite difficult looking at that thread because its down to the fact I have got manic depression I have got so many debts, got very ill psychotic like the posted B I L (undiagnosed) and thought I had the income of Joan Collins for years - sometimes laughable now I am stable but the mess it has caused is so scary - yes I have sold all the stupid luxurious items I bought when ill, but s usual with second hand goods for a fraction of the debt I used to buy it.

Thanks again everyone, I have been having a nosey on the site elsewhere (its wonderful) and I think I may ask if anyone knows how I can possibly deal with the CSA and if anyoe can offer any other solutions.

That saying rock and hard place . ..... I could swing for whoever quoted that, its my blooming mantra right now!

Thank you for getting back to me so quickly.

Need_To_Sort_It

dolce_vita wrote: »

The people who run these "buy and rent back" companies tend to be lying thieves and are best avoided.
They will probably only offer something like 70% of the market value and, as you say, they will more than likely want you out after 6 months so this offers no security for you or your family.

The best option is to sell the house in the normal way and move into suitable rented accomodation, after paying off your debts.

For advise about your debts have a look on the DFW forum.

best wishes

Thank you, it would seem I would not be able to rent privately because i can not get a financial reference, this too is a little unstable cos even if I could get a tenancy then they start at 6 months and could end up moving all the time and that would not do my head or kids much good in the long term.

I will spend the afternoon going through the board to look for solutions, thanks for replying

dolce_vita

Like I said have a look on the DFW forum. There are lots of friendly, helpful people there who have been through similar things and will be able to point you in the right direction.

There is also a relationship forum as well where you can ask about CSA stuff.

And a benefits forum to help with that side of things.

Good luck to you and I hope everyhting works out ok

Need_To_Sort_It

Thank you Dolce, I hope so too.

Its my mission for this pm.

silvercar

I think you would be better off selling your home and renting. Many private landlords would let to you if you were able to provide 6 months rent up front. You would then be able to claim housing benefit if you needed it.

If you do a sale and rent back you will only get a 6 month tenancy anyway, but will have lost a lot of equity from your property.

I would put your property on the market and start looking for a rental.

Need_To_Sort_It

If I could find a landlord to give me a tenancy for a year I would do it and pay up front with the sale proceeds but to be kicked out in 6 months would be no good for us.

hearts

Which part of the country are you in?