'sell your house and rent back ' companies

[den_m]

My wife and I are going to be made bankrupt. We have a court hearing for 7th November 2007. We realise that we are going to loose our home in order to release the equity that has built up in it. My question is would we be able to sell the house to one of these 'sell your house and rent back ' companies in order to stay where we are?., or once we have been declared bankrupt will we have any say in the matter to whom the house is sold?.

Thanks

[Jo Rolland]

Hi

Once you are declared bankrupt your trustee will take over control of any assets owned by you. Given that these companies only offer a maximum of 80% of the property value I doubt very much that the Trustee would agree to this.

Is there much equity in your property? Would you have anyone that could raise the equity to buy back the beneficial interest in the property in order for you to retain the house.



Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

[scaredkez]

hi Den and welcome to the forum, is their much equity in the house, only asking in case you could get someone to buy it back for you if that was possible, do you have children of school age, as this could mean it could take upto 3yrs before the OR acts on the selling of your property, if you want to stay for a while in the house til you get sorted remember you still have to pay the mortgage and keep it upto date so they lender doesn't start repossession proceedings, just trying to give basic advice as i don't know your full situation, if it does have to be sold it will be passed over to the trustee who might bring in a IP to take over the sale and it will be down to them how the house is sold and who to.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[mikebdomain]

If you do go down the route of a buy and rent back scheme, ensure you take one that allows a long term teancy agreement as part of the contract.

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[Adam Davies]

Hi
If you are going to declare yourselves bankrupt then it would not be a good idea to sell to one of these companies because,as previously stated,they will purchase your house at well below market value[usually] and this will be deemed by the OR as under selling an asset.
Regards

Andy Davie
IVA.co.uk Spokesperson

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