sell and rent back--any good?

ginalove

hi all, have any of you got an opinion on selling a property to an agent then renting it back. if we did this we would lose most of our equity but keep our 'home' if we go B.R. would we be in trouble for not utilising our equity in a more profitable way cheers for any opinions gina

fermi

I think you already asked this question here:

http://forums.moneysavingexpert.com/showthread.html?t=707363

It can be easy to lose a thread on here though.

tigerfeet2006

Thanks Fermi wa just logging in to say the same.

ginalove

sorry for any confusion guys but my previous thread was asking about whether we would be in trouble for spending our equity in our own way . the enquiry today was about somebody buying our house for a lower price allowing us to continue living here and renting it back from them and whether that would cause any probs withB.R. cheers gina

fermi

If you sell the property at under the market value then the OR will certainly investigate.

If they decide you have made a "transaction at undervalue" to the detriment of your other creditors then they can apply to the court to reverse the sale.

tigerfeet2006

To be honest I have reservations about these people. I have only heard one goodish result from doing this, a poster called smarty pants on DFW. I have heard of people out on their ear after 6 months- a year, rent being hiked up and other horror stories. If you are going to do this make sure you do your homework carefully

ginalove

sorry ive just looked at your link i am not very computer literate i had overlooked the thread about buy/rent back thanks for advice perhaps that is not the way to go!! i'm still waiting for c.a.b. to get back to me so i'll get in touch when i have an answer thanks so much to you all gina:D x

Conor_3

ginalove wrote: »

sorry for any confusion guys but my previous thread was asking about whether we would be in trouble for spending our equity in our own way . the enquiry today was about somebody buying our house for a lower price allowing us to continue living here and renting it back from them and whether that would cause any probs withB.R. cheers gina

Spend your equity however you want but if I were you, I'd be looking at the "Properties to rent" section near the end of the tenancy agreement because these companies are notorious for either going bust or not renewing the tenancy, leaving you looking for somewhere else to live. Also remember that they don't give the market value in the main.

Personally, I'd sell the house and get a fairer price then move into rented elsewhere where you're likely to get to stay put longer.

ginalove

thanks conor, im just going to have to get over my emotional attachment to this house, being a silly woman i think back to time i bought all the kids home and this being our first 'proper'place to live together. its like sjpsam says when all said and done this is just bricks and mortar --home is where you are -- it doesnt make all this any easier though especially when you know all our probs are self inflicted!! having a good support base does help incredibly though ---many thanks to all xx

jazzyq

hi, we looked into selling our house last yr to help ease our debt problems but we learnt the hard way as to how these companies work, you have to pay an upfront fee depending on the value of your house, we had to fork out £500, our house is worth £130000 and they offered us £85000 for it!!!!!!! After many phone calls they raised the offer to £90000, still an insult. So we would NEVER recommend these services to anyone desperate or not!!!!!

ginalove

thanks jazzy you have confirmed my fears the couple that came to see us when we enquired were lovely and i admit full of advice but i still felt they had more to gain than us. thanks for guidance gina