Ethical Sell and Rent Back Schemes?

There has been a huge amount of stories in the press in the last month about sell and rent back schemes and sellers who rent back and then lose their homes.

Whilst some of these stories are certainly true, there is a strong element of lazy journalism involved with tabloid TV shows recycling the same few examples over and over again. The fact that these new 'exposes' are almost always repeating the same story as a previous news piece actually makes the situation look common. In fact it isn't common at all.

When a property investor buys your property and rents it back to you they are also taking a risk. That risk is that you will be a good long term tenant! In our experience people who previously owned their own homes make the best long term tenants when they stay in the property they know and love. If you accept that property investors are motivated by money (it is after all an investment), then it soon becomes clear that evicting tenants makes no financial sense. Empty void periods, redecorating, advertising, agents fees etc all add up to a loss.

It is important that if you are considering a sell and rent back scheme for your own home that you ask the right questions of whoever will become your landlord, and worth remembering that trust is a a two way street. We only buy and rent back to those sellers we feel comfortable with a future tenants, and encourage the sellers to consider how they feel about us becoming their future landlord!

For a fast and free service if you want to find out more, or talk to someone about your repossession or eviction problem then please visit our website or contact us by Freephone.

For more information contact us on 0800 634 28 21

How to Cut Your Monthly Bills and Get Out Of Debt

How to Cut Your Monthly Bills

One of the most common questions you will find being asked online or offline is 'How can I cut my monthly bills and outgoings'?

If you already own your own home, then there is an answer that may be right under your nose.

With Northern Rock near the verge of collapse, interest rates on the rise and global tensions leading to a downturn in the world economy. Maybe the time to be a home owner is over?

These days with rents being cheaper than most mortgages and house prices beginning to fall, it can make more financial sense to rent rather than buy your home.

If you already own your home and you are feeling pressure from your mortgage lender or have unsecured debts like credit cards, then selling your home and renting it back could be the option for you.

You could get

- A Cash Lump Sum
- Your Mortgage and other Debts Paid Off
- Lower Monthly Costs
- More Disposable Income from you pay packet

All this without having to move from your home, so your kids can stay in school, your neighbours don't have to know that you situation has changed.

But most importantly you will have a fresh start without debt, something that very few of us these days are able to experience.

For more information contact us on 0800 634 28 21

BBC Highlights Sell & Rent Back Dangers

Concerns over repossession rents

Five interest rate rises in a year have seen repossessions increase. Some householders facing repossession are ending up homeless after selling their homes to property companies, a BBC investigation has found. The firms, which lease the properties back to the ex-owners, are said to be imposing large rent rises. Others complain that they have received less than the market value for their former properties. Consumer advice groups and housing charities said they were concerned about the lack of regulation.

Only option

A Citizens Advice Bureau official said one elderly man had sold his home under such a deal for £40,000, even though it was valued at £165,000. There was just no other way out if I wanted to keep the house Victoria Taylor A nation (re)possessed? The investigation for the Five Live Report found that such deals are on the increase at a time when increase rates have risen five times in the past year and the number of repossessions has gone up by 30%. Victoria Taylor lived in her home in Wolverhampton for 26 years, but was unable to meet the mortgage repayments after her partner left her.

On Five Live Sunday Breakfast she said selling and then paying rent to live in her house seemed like the only option. She said: "Had there been another way out I wouldn't have done it, but there was just no other way out if I wanted to keep the house."

If you are considering selling and renting back your home and are concerned about this BBC report, then make sure that you obtain references from any company that you approach. All reputable sell and rent back companies will be only too happy to provide details of satisifed tenants who have sold their homes to rent back.
We also offer a buy back option for you to buy back your home at a discount in the future and we can guarantee rents for up to 2 years.
Alternatively, sell and rent back may not be the best option for you and we try to give clear advice on what your options are before you consider sell and rent back.

For more information and contact details visit our website at
www.cashformyhouse.co.uk

Welsh property now too expensive says Shelter

Forty per cent of young working families cannot afford the cheapest houses in Wales and more house repossessions are occurring much sooner, says the housing charity Shelter Cymru.

Figures released by Shelter Cymru today show that this year has seen the highest number of clients seeking mortgage advice from the charity since 1991.

Nearly 600 households who were experiencing problems in paying their mortgages, and were facing a repossession action and homelessness, have been advised and supported by the charity over the last twelve months.

JJ Costello Head of Housing Services said: “ For some time, we’ve been afraid that the housing market has forced some people to borrow beyond their ability to repay. Some people will have been able to afford the initial fixed term mortgage rate but may now be struggling to cope. The rise of the sub-prime lender also appears to be resulting in more repossessions occurring much sooner.”

Shelter Cymru urges anyone facing arrears to seek specialist advice immediately. Getting early help with budgeting and reaching agreements with lenders can avoid repossession.

If you are facing arrears with your mortgage or fear repossession then click below to find out more about our popular Sell & Rent Back services
Click here for your FREE valuation /offer for your home

Mortgage woes finally sorted out

Jul 23 2007

by David James, South Wales Echo


MR X, of Caerphilly, nearly lost his home because of mortgage problems.

The family man, who did not want to be identified, sought help from Community Legal Service (CLS) advisers after being taken to court by his mortgage company over his arrears in October last year.

He had been ordered to pay £45 per month off his arrears on top of his £700 monthly mortgage repayments.

But although he made every payment, his arrears rose by £2,000 because he paid each one two weeks late – and he again faced losing his home.

After the CLS intervened and wrote to his lender GE Money, the lender altered his contractual payment date and took no further action.

To find out how to stop repossession and pay off your mortgage arrears WITHOUT borrowing more money click here

Mortgage Lenders Meltdown - How it Affects You

News out today that even the banks are getting worried about their own rising interest rates. The Times online has an article about how the leading mortgage lenders are getting worried about the potential of a house prices crash. Because the banks have been busy making so much money from mortgages and especially re-mortgaging ans second charges which depend on the consistant rise of house prices to guarantee the banks' profits, it's not just homeowners who could face meltdown in a house price crash crisis.

Even if the banks repossess your home, they still need to sell it either on the open market or via an auction in order to recover the debt from you mortgage. But if house prices crash then the banks will be less likely to recover all of your mortgage debts on your property. The result? Interest rates and mortgage arrangement fees are likely to increase further to cover the bank's shortfall in profits.

Why should we all care about the banks losing money? After all they make enough! Sure, but it concerns all of us who have a mortgage on our homes because rising interest rates affect us all.

With this in mind it could be the right time now to consider selling your home and renting it back. For the first time in living memory it is cheaper to rent most homes than to pay the mortgage. If you have a good amount of equity in your home you will also get a large lumpsum of tax free cash to spend. Isn't that better than having it stuck in your house only to lose it anyway when the market falls?

To find out more, contact Cash For My House and enquire about our sell and rent back scheme.

You can be evicted without warning!

More and more people are leaving until the last minute before seeking a solution to stop repossession of their home.

Last Friday afternoon I got a call from a very stressed homeowner who called to ask us to stop his eviction order. We do this all the time but the eviction order had already been in place for at least 7 days and the bailiffs were due today (Monday)!

In other words the family had left it until barely a few hours before finding out what their options are. Sad as it is, in this case, this family will be evicted.

I asked the caller why he hadn't called us before because we almost certainly would have been able to help him and his family avoid repossession. He told me that they had had a possession order suspended last year, but then they had not paid their mortgage payments for the last 4 months.

Suddenly, he was amazed that he received a letter from the bailliffs announcing that they would be physically evicting the family and all their belongings within 24 hours.

The point about a suspended possession order from the court is that the possession order is valid, the judge has granted the lender the right to repossess your home, but has agreed to suspend the eviction so long as you pay the agreed amounts each month to repay your arrears. If like our caller, you break that agreement, then the lender does not have to go to court again to get an eviction order. Why? Well, because the original possession order was suspended, but not cancelled.

So, if you find yourself facing a situation like this please contact us right away because your options will be much greater and you can remain in control of what happens to you, your family and your home.

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