sell my house to rent it back?

emmaroids

ok after a lot of working out my finances i have decided that if i was to sell my house and rent a property i will be better off by over 100 quid a week :cool: after all my debts have been payed out of the sale (may even be some left over to buy a new car) :T

theres a house up for let just up the road, i have inquired about it and no one has got back to me yet, in an ideal world i could rent that while they sell my house for me
but would that leave me with double bills every month (mortgage and rent)?

another option is to sell my house to one of those company's that let you rent back.

i have heard bad things about these yet someone who lives near my mum has done this and is very happy and got loads of money spare each month.

so can anyone recommend one of these company's and is it a good thing?

i don't mind not owning my own home anymore as my mortgage is becoming a drag.

any advice please?

and sorry if this is in the wrong section.

thanks.

chuckles1066

emmaroids wrote: »

another option is to sell my house to one of those company's that let you rent back.

i have heard bad things about these yet someone who lives near my mum has done this and is very happy and got loads of money spare each month.

Typically, they'll only give you about 75-80% of the true market value.

emmaroids

yea i know, they give you the other 20-25% in 10 years i believe.

seven-day-weekend

Apaprently what these buy-and-rent-back companies do is buy your house at around 30% less than market value and then rent it to you on an assured shorthold tenancy, which means you can be chucked out after six months. AFAIK there is no security of tenure. However there won't be with any assured shorthold tenancy on any property, so this may not put you off.

In answer to your other query, you will be liable to pay your mortgage and other expenses on your house whilst it is being sold, unless you can persuade your lender to give you a payment holiday.

When we sold an investment property, our lender gave us a six-month payment holiday from the mortgage and luckily it sold and the sale was completed within that time, which meant we didn't have to pay the mortgage again.

However, many houses take many months to sell, so be aware of this.

emmaroids

seven-day-weekend wrote: »

you can be chucked out after six months.

this worries me, having 2 kids and all, if they let you rent back indefinitely then i reckon i would do it.

stebiz

emmaroids wrote: »

this worries me, having 2 kids and all, if they let you rent back indefinitely then i reckon i would do it.

Yes I heard exactly the same. Have you thought of creating a tenancy agreement for yourself. Then sell the property as an investment property.

Stebiz

fiveyearplan

HAve you thought about putting your house in an auction? You can put a minimum sale price and it it sells it is quick. I haven't done it myself but am seriously thinking of it when I'm ready to sell. I'm currenlty tied in to mortgage and have heavy early redemption penalty if I sell before October.

Biffa

Please don't do it! I'm dealing with a case at work very similar, where the couple sold it to rent it back, thinking they could stay for as long as they wanted and they've now been served with Notice to Quit.

The company will also pay you far less than the property is worth. I've read of cases where houses have been bought for up to £100k less than they would have fetched on the market. They will also reduce this again for not having vacant possession upon completion - ridiculous, because that's the whole point of selling to one of these companies. They will give you a six month tenancy, after which you may be given notice to quit and will have to leave. Then the house will be back on the market and proper market price.

If you're going to sell, then sell it on the open market, get as much money as you can for it and find somewhere to privately rent.

emmaroids

thats what i thought (maybe my mums friend doesn't know whats going to happen in a few months)

this house up the road would be ideal as i can stay in this area and my kids don't have to change schools.
i shall speak to whitegates tomorrow.

maybe if they was to sell my house and let me move in to the rented one with the understanding that when my house sells they get all the rent thats due??

does that sound like something they could do?

Jonbvn

emmaroids wrote: »

yea i know, they give you the other 20-25% in 10 years i believe.

Sorry but that is totally incorrect.

Please do not sell your house BMV then get thrown out after 6 months!

Jonbvn

emmaroids wrote: »

maybe if they was to sell my house and let me move in to the rented one with the understanding that when my house sells they get all the rent thats due??

does that sound like something they could do?

Nobody will wait for money until you sell your house.