Selling and renting back your home

Bungarm2001

The thing to always bear in mind is that these sell and rent back organisations are NOT REGULATED in anyway shape or form.

They can make up their own rules, change them when they want etc etc and are answerable to no-one.

You say they are in it to make money and you are obviously absolutely right, so when push comes to shove, if they find THEMSELVES in any financial difficulties, their nicey nice facade will soon drop, believe me, and they will re-sell the property from under you in a heartbeat if it made financial sense to them.

Last year, in my very rural area, we had one very small ad in our local paper advertising a sell and rent back company based in a large city near here; this year there are 5, one with what must be a pretty expensive full page ad. They are springing up throughout the UK like a rash

It's the new bandwagon...and a bluddy nice little(!?) earner. Be very very careful..in fact, just don't do it.

Scubabe

ree1971 wrote: »

hi i am looking for a company like u have found could you give me there name so that ican get a quote from them please:T

Where are you based? This company may not be of any use to you if you're not in my area...

Scubabe

Bungarm2001 wrote: »

The thing to always bear in mind is that these sell and rent back organisations are NOT REGULATED in anyway shape or form.

As a tenant surely you are covered by the same rights and responsibilities as ANY person in the UK who is living in rented accomodation. If you sign an AST they simply cannot kick you out with 24 hours notice.
If you are renting anywhere at all, the landlord can suddenly decide to sell the house/flat you are living in.... but that does not make you homeless. If you have a lease, you cannot be made to leave before it ends. Simple as!!

You say they are in it to make money and you are obviously absolutely right, so when push comes to shove, if they find THEMSELVES in any financial difficulties, their nicey nice facade will soon drop, believe me, and they will re-sell the property from under you in a heartbeat if it made financial sense to them.

Show me any professional landlord in the country who wouldn't do the exact same thing? Of course they are allowed to sell the property if they need to, they own the bloody thing!!

Scubabe

dolcevita wrote: »

Scubabe - are you renting the house back off them or not?

Absolutely not.
We are selling because hubby has taken a job 250 miles away and the commute is just a little too long
I am selling to one of those companies because I needed a fast cash sale to complete at my terms, and I severely doubt I could have found someone on the open market who could do the same.

ree1971

Scubabe wrote: »

Where are you based? This company may not be of any use to you if you're not in my area...

hi its ree1971 tnks 4 the reply i am based in sheffield and very desperate:eek:

Bungarm2001

You are right, they WILL have some sort of AST BUT what I am saying is the LL's have no legal pressure to continue to re-let to the same people OR keep the rent at a reasonable level at each renewal.

I assume that the new LL and tenants (the previous owners) would be at odds somewhere down the line when it did actually come to raising the rent for instance, or simply just not renewing the AST at the end of the contract, and I have a very strong gut feeling who would lose out.

As I understand it, part of the persuasiveness of these kinds of deals is that the new tenants/previous owners are given a promise that they can rent out the property for a considerable length of time, sometimes for life. Unless there is a watertight contract in place, with no break clause for either party, then I cannot see how this arrangement would be upheld in the future by the unscrupulous.

As I said, at present there is no legislation or even a code of conduct of any description out there to keep a watch on these kinds of arrangements. They are therefore completely open to abuse.

Scubabe..it looks like you have made a pretty good deal and have left the proprty anyway, and good luck to you. MY concern is for the people who get sucked in by the rent-back part of these deals. I will ALWAYS warn people off theses deals at least until there is some sort of regulation put in place.

Trollfever

I got a flyer from one of these companies saying that I could have the cash within 24 hours. Impossible in my experience!
Edited to add:

I called xxxxxxxxx in the morning and was paid in full for my house that afternoon. Mrs S xxxxxxx Manchester.

As has been mentioned how sound is the company that you are dealing with?

How long has it been trading?

Have you seen audited accounts?

What do you know about the directors?

How is the company financed?

What happens if the company goes bust?

Companies large and small are being crunched by their bankers.

SquatNow

Dan: wrote: »

You will get ripped off by these companies. You have 18 months left to run on your fixed rate, so I would not worry about it too much until then.

"Not Worrying" about the fixed rates is the reason 1m people will come off fixed rate in the next few months with no idea how to pay the increase mortgage repayments.

Dan: wrote: »

Remember - always pay your mortgage first. Your unsecured borrowings is a second priority.

Post April 2006 all loans are effectively secured on your property.

Where-as it used to take a high court case to take your house from you for an unsecured debt, it now just requires a list stamping by the clerk of the court at any magistrates court. Then they can put a charge against the house, and force you to pay the debts, sell the house, or even reposess it.

The rules have changed and no-ones noticed. By the time people realise it will be too late.

Scubabe

ree1971 wrote: »

hi its ree1971 tnks 4 the reply i am based in sheffield and very desperate:eek:

Ree, I will email her over the weekend and will PM you to let you know what she says.
I am in the North West so it is possible she may invest in houses in Sheffield, but I don't know for sure.

Will let you know as soon as she replies.

But here's an idea, in the meantime. Get your local free paper. Turn to the classifieds section at the back. Ring between 5 and 10 of the companies listed in there and get them to all come around and quote you. Be aware, many of them will ask you over the phone to suggest what you want for the house - tell them what you think it's Market Value is, do not say what you hope they will give you on their 85% value offer. Just say "I think the house is worth £100K" or whatever. Do not agree to pay for a valuation or any other kind of fee under any circumstances.

Then just sit back and wait for the offers to come in.

That's how I found our buyer!

Ness

ree1971

great will do that jst nice to talk to someone who is in the same situation