SELL and RENT BACK??

adzlaw

Hi All,

I'm a first time poster and wanted to get anyones view on the whole sell your house and rent back scenario.. I know there are a lot of dodgy companies out there ready to rip you off but there must be some genuine ones as well

We're currently coming to the end of a good fixed rate in December and I've got a loan secured on the house as well so I don't think many people will look at me. Am I best just trying to find a decent company and starting with a clean slate ??

Thoughts

Thanks

EdInvestor

They will only offer you 70% of the value of the property.Why not put it on the market with a 15% discount off the market price for a quick sale?

You will be better off.

teabelly

It depends on the company. Some will offer up to 85% of market value and give you an option to repurchase the house for a set price later.

Spend some time going through your budget and trimming as much as possible. You need to learn to live on less money so if there is a shock in rates to come you can still survive. Use the spare you generate now to pay off as much debt as possible. If you can reduce your secured loan then you will be in a much better position come December. Level of debt and defaults are the two critical things. If you show that you have been reducing debt levels over the last months before you refinance then it makes you a better prospect as lenders can see you are making the effort to do something about your over spending.

brit1234

Speak to your bank first or get some free advice from shelter.

http://england.shelter.org.uk/home/index.cfm

Many of these rent back companies themselves are collapsing because they too can't get loans. If they do collapse you get thrown out.:exclamati

clutton_2

""Some will offer up to 85% of market value" - since the credit crunch this figure has gone down substantially as Lenders tighten their lending criteria for Sale and Rent backs - there are now less than one quarter of the mortgage products available than a year ago - this means that quick sale companies have to offer less and less ......