sell to rent and buy back option

lacken12

Hope some one can help .i am looking at the sell to rent and buy back option on my house this looks precarious as their are so many companys and i do not know which one to trust .Are their any reputable ones and are they regulated by a legitimate body .
Could do some with advise .

Thanks

dunstonh

this looks precarious as their are so many companys and i do not know which one to trust

Rightfully so. There are a number of highly leveraged firms operating in this unregulated field.

Are their any reputable ones and are they regulated by a legitimate body .

There are of course reputable firms and there is no regulation.

However, selling up and moving into rented accommodation almost always seems the better option as you dont lose a chunk of your equity that way.

lacken12

do you mean if you sell and rent back that you lose some of the equity in your house , and the better way to do it is sell as normal then after sale rent another property .Hope this makes sense .

Leon_W

Dunstons right.

These companies are not charities and some are outright crooks. They will pay you somewhere between 70-80% of the market value (or as little as they can get away with). Effectively you are giving them this equity in return for errrr ummmm ahhhhhh NOTHING ! You can live there maybe but have to pay rent and after 6 months they can kick you out, sell it, and keep the profit. Try and sell then look to rent somewhere else.

lacken12

thanks for that LEON W ,so i must assume their are no reputable ones at all .
:question:

Leon_W

No, I didn't say that.

I said they are not charities (which they are not) and some are crooks (which they are)

What I am saying is ,why give 20% of the equity in your home to someone else (reputable or otherwise) ? What is the point of it and what benefit do you derive from it ?

I can't see one positive. If someone can correct me and explain the benefits of such schemes I would be delighted to argue the point with them.

MiserlyMartin

Yes. The other guys are right. What these 'companies' are doing are looking for forced sellers that they can exploit by giving below market value for their houses - that they can then eventually sell on for a profit. Profit which they will be making at your expense. Some even promise things like 100% of market value 70% now, but the remaining 30% paid 10 years later! On a 10 year fixed term lease. Who would want to commit to renting to a house for 10 years and would one of these companies actually be around in 10 years time to pay you your final 30%? I doubt it.

Selling to one of these sharks has to be an absolute LAST RESORT. Even then - better to drop the price for a quick sale and sell to a first time buyer than to those leeches.

dunstonh

You know when someone is on the floor injured and really needs help. Well, the nice indivdual calls an ambulance. The sell and rent back pinches your wallet.