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Sell and Rent Back Schemes


Reavna
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Hello, I wonder if anyone can give me any information that I can pass onto a friend who has asked me for advice.

 

Back in the summer my friend split from her husband. He moved out but he was supposed to continue paying the mortgage on their house.

 

It would seem that he hasn't been and my friend has now received a repossession order - she's supposed to go to Court on the 20th December.

 

She has been trying to sell the house, but the market is flat around here at the moment and she hasn't had any luck but she's come across an advert for a company where you sell them your house and then rent it back from them.

 

We're in a little village and council accommodation here is non-existent, there's not much for private rent so it sounds perfect for her. She doesn't have to move, her 3 kids can continue at the same school, etc, etc.

 

Can they be a good thing? I've only ever seen bad things about it on programmes like Panorama, but she's seeing it as an answer to all her problems.

 

She knows she probably won't get full market value, but if it gets repossessed she won't get market value either and there's no way she's going to have sold by the 20th December so on the surface it does look like the answer to her prayers

 

Thanks!

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i can only really speak of my own experience and that is because we have three children, we went to court (time and time again) and the judge ruled he must pay half of the mortgage and anything that hadnt been paid thus far had to be caught up with so he had to be responsible for anything not paid after leaving up until the court date and thereafter, my children can live in the home until the youngest finishes full time education

how your friend would stand if there are no children involved i really have no idea sorry

honey x

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Don't do it! search through the BBC news as there was an article on these blood suckers. They buy your house for a fraction of its worth then move to have you evicted after a year or if you fall into any sort of rent arrears.

Any posts submitted here on the Consumer Action Group under the user name GlasweJen may not necessarily be the view of the poster, CAG or indeed any normal person.

 

I've become addicted to green blobs (I have 2 now) so feel free to tip my scales if I ever make sense.;-)

 

 

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Thanks for the replies.

 

I have told her about the evictions, etc, but then she says that she's probably going to be evicted on the 20th December anyway. This will at least give her some leeway.

 

They don't have any equity in the house, they took out a big secured loan to pay of debts last year and nothing is selling around here at the moment either.

 

Does she have any other options? I did suggest she speak to the DSS and enquire about having housing benefit or the interest only part of her mortgage paid.

 

She's only got 2 weeks before the Court date and I don't know anything about it.

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She has seen a solicitor and their divorce is going through at the moment and the finances are being finalised but it's all taking time. Her legal aid has run out so she's waiting for that to be renewed so her solicitor can't do any more work in the meantim

 

It was an agreement between themselves but he's now just refusing to pay the mortgage.

 

She's worried that she doesn't have time to do anything legally between now and the court date

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he isnt being a father in a position to refuse anything fortunately in her predicament, as for legal aid ive no knowledge unfortunately as i had to pay privately for solicitors and court fees, id do know of a person in a similar predicament tho and they went to court and arrears had to be paid by both to the mortgage company, she is still to this day in the house with their two children and yes he still pays

tell your friend to contact the csa and also child tax credits if she hasnt already done so

honey x

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Don't do it! search through the BBC news as there was an article on these blood suckers. They buy your house for a fraction of its worth then move to have you evicted after a year or if you fall into any sort of rent arrears.

 

 

Yes Jen, I've read about it too, it appears to be bad news.

 

You don't even need to fall in arrears to be evicted.

 

From my understanding, they pay much less for the property to clear the mortgage and pocket the equity, charge a rent a little lower than what your mortgage was, regularly put up the rent as they only give something like a 6 month fixed rent tenancy.

 

Then you're in a worse position than before.

 

Scumbags.

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These companies are becoming more frequent and some are even pretending to help make you savvy to the property market, it is a legalised [problem]! They are buying at rock bottom prices, charging full market value rent, and if you want to buy back it will be at a mark up, naturally people taking this route are the naive or very desperate, I hope legislation comes in quickly to sort these people out:mad:

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^^^ i agree, the girl with the two children that i know of went to court and they were able to come too a compromise, and they were in arrears by thousands (much too her husbands disgust!!_)

honey x

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sequenci is right, you need they need to be showing payment of something - this buy back scheme/[problem] looks like a life saver at the right time, long term they will look back with regret at the fortunes they have gifted to these parasites

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Hi. Thanks everyone!!!

 

She's on benefits herself - CTC, child benefit and I think she gets some sort of income support, although I'm not too sure.

 

She can't afford the mortgage herself, the deal she struck with her ex was that she covered all the household bills, he paid the mortgage. He can afford it but is being difficult as he doesn't see why he should pay for a house he can't live in - she can't make him understand that it'll still be his house.

 

The divorce/finance side of it is all going through Court, the finances are being sorted out with the solicitors but until it's all legal he's refusing to pay a penny. She heard back from the legal aid people today so her solicitor has started doing her work again.

 

I thought she'd be entitled to some sort of housing benefit, another friend had the DSS pay the interest only part of her mortgage so she could stay in her house with her children. We live in a little village and there's no council accommodation here so it would be much better all round if she could stay put.

 

She's just panicking that she's got to go to court in 2 weeks time and is convinced she's going to end up homeless.

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im sure she will be fine, negotiations between married couples dont work believe me!!! she needs the csa on board too if she hasnt already and yes they do back date it to the date he left

honeyx

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I think in the circumstances i.e mum on benefits, kids soon to be homeless, dad not keeping to an agreement etc, it's unlikely that they'll be evicted.

Court will probably force the couple to come to a new agreement and enforce that. I'd advise speaking to welfare rights and someone from shelter.

Any posts submitted here on the Consumer Action Group under the user name GlasweJen may not necessarily be the view of the poster, CAG or indeed any normal person.

 

I've become addicted to green blobs (I have 2 now) so feel free to tip my scales if I ever make sense.;-)

 

 

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I think in the circumstances i.e mum on benefits, kids soon to be homeless, dad not keeping to an agreement etc, it's unlikely that they'll be evicted.

Court will probably force the couple to come to a new agreement and enforce that. I'd advise speaking to welfare rights and someone from shelter.

 

 

Unfortunately Jen a mortgage company doesn't think like this-which is why they are taking this action.

 

They will argue that the state or a charity has to provide housing for the vulnerable.

 

In any case, the judge has to look at the reality of the homeowner affording the mortgage and the arrears, otherwise he would put the homeowner in a worse position. He cannot do that by law.

 

The op needs some specialist help and very quickly.

 

Good luck.

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I agree with the last poster as l feel that the court dealing with re-procession issue will not be too interested in the plight of children should an eviction order be put in place, as the court will be aware of the LA's duty to ensure that children are not street homeless.

 

I would reccomend the mother contacts SHELTER who can give independent legal advice on housing issues, or the local housing office's Homeless Prevention Officer as a homelessness application may be needed (can be done 30 days prior to event of eviction)

 

The mother needs to accept that she may not be able to remain in the village as even if she privately rents the housing benefit shortfall may cause her hardship.

 

The father of the children has the responsibilty to provide for his children so even if the house is lost he should be chased to fund a rent deposit and ongoing rental payments.

 

Hope it all works out for the family in the end.

 

EssexBas

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Thanks everyone!

 

I passed all your advice on to her this morning and I hope now she's not going to go for it.

 

Her legal aid has now been re-started so her solicitor is now dealing with the repossession so fingers crossed it all works out for her.

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