Sell and Rent Back Property ?

carpediemspirit

Hi All,

My aunt is in serious debt, Please don't take the mickey, this is serious.

A few years back, her and husband bought a house for over a million and now they are having severe financial problems and can't afford to live there, they have put it on the market for £950,000.

Now she is thinking about doing one of these schemes where you sell your house to a company and rent it back.

Anyone know anything about this ? is it worth it ? and can anyone recommend any reputable companies ?

Regards
Carpediemspirit

tigtag02

NO ~ dont do it ~ they will only buy for approx 75% of the asking price and will probably give them notice to leave within 6 months.

Burlesque_Babe

how about selling up and downsizing? Where is the property, it must be huge for just 2 people (unless it's down my way and then it probably isn't!)

Karmacat

Exactly what tigtag said. The terms and conditions may vary slightly, it may be 8 months not 6, because the people who do this are rumbling that *they've* been rumbled, but the chances of her being homeless and only having a much smaller percentage of the sale price than she should have, are approaching 100%. You only have to search on the web for something like "buying below market value" to see the sites where these people learn their tricks.

Browntoa

loads of these companies are now struggling to get finance/pay existing loans as it is.

Bayblue

No don't do it.

Besides which if they are struggling to manage now how are they going to cope with the rent on a £1million house? That's assuming that the company make the rent proportionate to the property, and I can't see any reason why they wouldn't.

If things are as serious as you say then may be time for you aunt to sell her house, her biggest asset and get herself out of her financial troubles.

Broken_hearted

Downsize there is no point living in a massive house you can't afford.