in a bit of a financial and family ill health hole so can't move house but can't afford to stay mortgaged either. Help please!!!
2007-09-22 15:08:00 · 3 answers · asked by lizzybean 2 in Business & Finance ➔ Renting & Real Estate
I think you should read the terms and conditions carefully. I have seen the adverts in the NE and I have a few queries about it like:-
Full Market Value - they claim to pay full market value for your home so make sure you have had an estate agent look around and ask him what he would sell the house for - you will want to get very close to this ammount. Let face it, if they really give you full market value then everyone would sell to these guys before they moved house.
Rent Cost - Find out how much the rent will be - it will likley be enough to cover 100% of the mortgage if you bought it now. This means any money you get from the sale will get eaten away fast with the new rent payments.
Rent Increases - Rent is generally not increasing much due to the Buy to Let boom, most of these companies will link the rent to inflation which means it rises faster than the rental market.
It sound like a good way to clear debts but remember that once off the housing market you may never be able to afford to get back on.
Other options could be to extend your mortgage by more years, this would reduce the payments but mean you are paying longer.
Good luck
2007-09-22 17:21:13 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Be VERY careful - the Rent is usually set at some high rate to start with and is INCREASED every year until you are bankrupt, evicted and could end up living on the streets ...
If you have kids who are earning, explain you are in financial difficulties and ask them if the want to help finance their Inheritance (your house) OR if they would be OK for you to 'sell up' and move into a dirt cheap one room ground floor flat down by the seaside ...
2007-09-23 00:19:14 · answer #2 · answered by Steve B 7 · 3⤊ 0⤋
I sincerely suggest you ask the citizens advice bureau for help with this one. Sell and rent back your house companies are basically interested in their profit levels.
Watch out for answers which are from advertisers.
The first answerer has given really good reasons for avoiding this type of scheme.
2007-09-22 19:59:24 · answer #3 · answered by John S 4 · 1⤊ 0⤋