Tuesday, September 11, 2007

Sell to rent back companies prey on desperate sellers

Buy-to-let gives way to sell-to-rent-back

Clouds are gathering over the UK housing market - and desperate sellers are increasingly turning to sell-to-rent-back companies. But homeowners should be wary of this unregulated industry.

Posted by mary @ 10:12 AM (838 views)
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7 thoughts on “Sell to rent back companies prey on desperate sellers

  • dohousescrashinthewoods says:

    Let’s face it, if you’re into abusing people for financial gain, you will always look to operate in an unregulated market.

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  • The effect of “sell-to-rent-back” companies will be interesting. Firstly, the Land Registry figures for house prices will show a steep decline because such companies buy houses back at 80% of market value. This will be seen as a decline in house prices. Secondly, former owner-occupiers are now renters who have no rights to live in the house. What happens in a few years when the rent goes up? What happens when the Landlord, (the company), wants to sell the house?

    This is yet another ploy to give the illusion of wealth and success. How long before mis-selling scandals occur?

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  • The companies who do this “sell to rent” are scum preying on desperate home owners.

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  • Crashing Pumpkins says:

    This of course is totally masking the level of bankrupcies out there…

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  • @Bug16

    Agreed. But since when did anyone (Banks, Governments etc) stop scum preying on desperate people. Especially, in this case, the problem was caused by the Banks and Government.

    I wonder what Gordon Broone is thinking? I’m sure the BoE have made forecasts of the credit crunch effect.

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  • crash bandicoot says:

    I’m sure that it’s been said before, but unless you have paid your mortgage (or bought for cash in the first place) then you don’t actually own your house. The bank are just letting you live in it while you are paying them back. If you become unable to pay them back, then they are entitled to ask you to leave.

    If you chose to sell to a rent-back company you are really just papering over the cracks. Once you enter the rental market you should expect to move every now and then. You would be far better off just selling on the open market – while there is still some equity in the house.

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  • C'mon Correction says:

    Crash – from what I’ve heard of two colleagues of mine, selling a house is really hard at the moment. Neither have sold after 9 months and 5 months on the market, neither have a seller, both have reduced their asking prices.

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