SELL & RENT BACK??

[flashingblade]

Hi
We are in an IVA .

We are wanting to sell our home and rent it back to one of those firms...does anyone know of a good one? We are on interest only mortgage with a sec loan on the house.

How will we stand getting our IPs permission? We are planning to go bankrupt also, as i am leaving my job due to ill health, and other reasons too.

can anyone give me some advice?

We havent paid IVA since dec due to my sick leave.

[MelanieGiles]

Either Andrew Graveson or Tony Parsons may know of firms that offer this service. Do you have any equity in the property at present?

[Reviva UK]

Hi Flashing blade

am happy to advise you of a few ethical investors too if you need to explore them.

Some thoughts:

1. these companies usually don't pay over 80% of the value of the house. So if the estate agent value was 200,000 then they would want to pay a maximum of 160,000.

2. The market rate rental is also applicable and needs to at least cover their mortgage on a buy to let basis.

3. there are not many companies who offer more than a 6 month tenancy ( although most talk about staying in the house as long as you like). We have found 3 investors who are in for the long haul and are actually happy to agree to a 10 year term!.

4. If with 1st and 2nd charges PLUS redemption penalties the mortgage is over 80% it is unlkely that you will get a buyer.

5. If you are going Br then you need to carefully consider the position of selling the property at under value and the OR can actually overturn these sales.

Strongly suggest you speak to someone who understands the debt business and implications PLUS the sale and lease back business.

What area of the country are you in?

[flashingblade]

Oh God, its all so complicated. I dont know who or where to turn to. I thought the IVA would sort us out but we are still in a mess. Im in South Yorkshire, is there anyone i can talk to privately who really knows what theyre talking about??

I thought this would be the best way to go BR without losing the house, and if we rent we can claim housing benefit etc

someone please advise me who to ask all these questions too!

[MelanieGiles]

Ian Millington is in Manchester and I am sure he would be prepared to give you half an hour of his time to deal with your queries.

[flashingblade]

Thanks Melanie

It must seem im always coming up with some 'scheme' to get out of this mess, but nothing ever works!

[Reviva UK]

Hi Flashingblade

Ian would be a good person for you to discuss things with from the IP's point of view.

if you need an informal chat with someone face to face re the sale and rent back side and how it affects Br then I have someone in South Yorkshire -but you need to make a good cup of tea ( he is quite picky about this!)

Anyway you have a backup offer of help incase you need it
take care

[flashingblade]

Thanks all,

After a number of phone calls i have a meeting with someone from my local council who deals whith debt, a bit like the CAB (next app with the CAB was end of May - unbelieveable!).

Hopefully this will be the best way to sort out the mess we are in.

[jim_h]

i sold to a sell and rent back company last august best thing for me i pay 690 pounds a month instead of 1000 pounds they gave me 136000 pounds which paid my mortage and loans off the same house down my street is on the market for 133000 pounds so i got a good deal as they paid 5% below the market price last year

[Stell]

Could we do this? Blimey Jim - our house only worth 65K - mortgage 270 pm - there is me wanting to find a tall tree and short rope - mind you I spose it is relative - I earn only 540 pm and o/h 600 inc overtime!!!

Stell

[Soulgrowth]

It's good to hear a positive story concerning such companies, most up until now have been negative ones.

Debbie

[MelanieGiles]

I agree with that Debbie - and I suspect that we will see more of these deals working over the next couple of years. It is a difficult decision to sell your house, but if you retain your home that has to be a positive move for a lot of people.

[flashingblade]

im looking at all options to help us

1. To move out and private rent, stop paying mortgage and sec loan and try to sell house normal way. Then when this is done go BR, using 1k equity to go BR for me & Husband.

2. To sell and rent back to one of these firms then go BR, thats if they would give us enough to pay off mortgage and sec loan, then go BR. I just worry the OR would over turn it.

Im packing in my job due to ill health and either way we need to rent so i can claim housing benefit. Our IVA wouldnt be enough of my husbands wage so we are going to go BR.

Does anyone have any views of what would be the best option of selling the house??

[MelanieGiles]

You really need to talk to an IFA or specialist mortgage broker with regard to your options. But if you are facing having to sell anyway and moving into rented, the option of sale and lease back may be worth looking into - but you must sell at market value and a lot of these companies will limit their offer to 80% of the value which would then be a sale at undervalue which the Trustee could overturn.

[e.h]

Hi

Have you heard of the UK Housing Alliance - hope I haven't breached any forum rules putting this link on here.

Regards

Liz