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Danny Deflation

"we'll Buy Your House Then Rent It Back To You!"

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Seen a lot of ads - on TV, in newspapers and magazines, and on banners on sites like HPC - from companies offering to buy someone's house - FAST. They then give the resident the opportunity to rent the house back from the company.

Seems like preying on the unfortunate victims of the recession.

Edited by Danny Deflation

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Seen a lot of ads - on TV, in newspapers and magazines, and on banners on sites like HPC - from companies offering to buy someone's house - FAST. They then give the resident the opportunity to rent the house back from the company.

Seems like preying on the unfortunate victims of the recession.

could be if the terms are financially harsh.

on the other hand it could be a helpful solution.

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I don't see the point. Once you sell it to them - it ceases to become your house anymore.

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I don't see the point. Once you sell it to them - it ceases to become your house anymore.

it means you can carry on living there... quite a big deal ,especially for families

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it means you can carry on living there... quite a big deal ,especially for families

It's using your psychological attachment to living in your house to get you to sign up to a deal that is financially disadvantageous.

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It's using your psychological attachment to living in your house to get you to sign up to a deal that is financially disadvantageous.

it's not USING anything - it's an act of free will from the home occupiers whether they take the offer or not.

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it means you can carry on living there... quite a big deal ,especially for families

But the whole sales point is that it is your home. It is not. It is a rented house that you have lived in before. I appreciate some people may prefer to stay put in a place they know and simply can't be arsed moving. However I am sure many believe that they are still living in their own home.

Re. a scam ? I have heard a fair few of these companies are just that. Not all of them though. Get a good price of you. Cancel the rental agreement forthwith, then sell on a small profit. Think I saw a programme about it.

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Re. a scam ? I have heard a fair few of these companies are just that. Not all of them though. Get a good price of you. Cancel the rental agreement forthwith, then sell on a small profit. Think I saw a programme about it.

It was on ITV last year.

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But the whole sales point is that it is your home. It is not. It is a rented house that you have lived in before. I appreciate some people may prefer to stay put in a place they know and simply can't be arsed moving. However I am sure many believe that they are still living in their own home.

Re. a scam ? I have heard a fair few of these companies are just that. Not all of them though. Get a good price of you. Cancel the rental agreement forthwith, then sell on a small profit. Think I saw a programme about it.

agreed, in both these cases, where they occur, advantages are being taken. It's not an intrinsically flawed system, but one where cowboys appear to operate to a large degree, it would be nice to see ti cleaned up.

As, I would add, advantages have been taken by lenders giving people mortgages they could not afford in the long term.

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They generally offer 75% of market value. Market value to them is low ! probably 25% off peak...(they usually buy family homes)

Its the lesser of two evils for many people.They dont even have to tell the neighbours either..get cash in the bank,depending on equity levels.Or at least just about keep a roof over their heads,and not be reposessed.......Its an idle way of selling though...quick and not much thought needed.Usually done by reckless people.

It can be someone whos emigrating, or a home left in a will and benificiaries want the cash quickly and dont even want to rent it......

Edited by tiggerthetiger

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I saw a program where one of these companies bought a load of places using borrowed money, defaulted on the loan but still took the rent. Subsequently, the people were forced out of their own homes because the banks repossessed.

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