Sell to Rent

trevs7

Has anyone any experience of either;

a) selling your house to a company for 80/85% of it's market value and renting it back from them.

or

b) selling your house (via an estate agent) and using the interest to part fund the rent on another property.

Isn't it a good time to sell your house when the prices are starting to drop and cash in when they have hit the bottom, (or when you think it has hit the bottom)?

PasturesNew

It's a long way from the bottom.

Whether it's a good idea depends really on why you would do it and what position that would leave you in if you got it wrong. Who else does it affect?

I sold mine last year.
I didn't do it to make money, but to get rid of a house I hated and move from an area I wasn't thriving in.
I am single so it hurts nobody if I am wrong.
In the area I moved to, the money I banked is enough to buy a house again if I got it wrong.

For me there was 1% risk.

If you're getting out with £0 and have a family and need to be close to 2 people's jobs and 1-2 schools, the whole thing would become much harder and more stressful. Especially if your partner didn't support your logic.

As for selling to a company for 80/85% they are unregulated and really trying to cash in on people's desperation. The general concensus is they're probably 99% a bunch of crooks who will want to see you out on the streets within a year or so.

hearts

"It's a long way from the bottom."

If this is true. Why would anyone buy it.?

"As for selling to a company for 80/85% they are unregulated and really trying to cash in on people's desperation"

If this is true then going by your first statement accepting a 15% loss must be a great deal. ;-)

trevs707

hearts wrote: »

"It's a long way from the bottom."

If this is true. Why would anyone buy it.?

"As for selling to a company for 80/85% they are unregulated and really trying to cash in on people's desperation"

If this is true then going by your first statement accepting a 15% loss must be a great deal. ;-)

This is exactly what I thought. These companies advertise that they will offer between 80 to 85% of the market value. They also advertise that you can buy back your property after a minimum period for 10% less that the market value. On the basis that house prices are dropping isn't this too good to be true???

PasturesNew

trevs707 wrote: »

This is exactly what I thought. These companies advertise that they will offer between 80 to 85% of the market value. They also advertise that you can buy back your property after a minimum period for 10% less that the market value. On the basis that house prices are dropping isn't this too good to be true???

Every one operates differently/is offering a different deal.

First time I've seen that offer.

dopester

Some of the sale and rent back firms go under themselves you realise?

There is that one above and another recently.

IMO it's a stupid business to be involved in.