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Posted: Mon Jun 30, 2008 7:18 pm
by e.h
Hi,
Just a hypothetical question for the experts. Not going to happen but am curious. If you decided to go bankrupt and before you did declare yourself BR, what would be the implications if you were to sell your property to one of these companies that buy them off you and rent them back to you?
Thank you
Liz
x
Posted: Mon Jun 30, 2008 7:23 pm
by kallis3
I presume it would just be classed as rented property as you would no longer own the house.
I'm sure someone else will probably know more.
Posted: Mon Jun 30, 2008 7:32 pm
by MelanieGiles
As these companies will only offer you up to 80% loan to value, this would be treated as a transction at undervalue and thus should be avoided.
Posted: Mon Jun 30, 2008 7:44 pm
by jpj
Plus if your property had a mortgage over say 80% you wouldnt be able to do it anyway as the mortgage company wouldnt release the deeds unless you paid the whole mortgage off,and you have solicitors fees etc on top!
Posted: Mon Jun 30, 2008 7:51 pm
by connie
also be careful if you wanted to claim housing benefit on your rent as you wouldn't be able to as you've owned the property within the last 5 years.
you'd have to prove you couldn't have lived there without doing this. ie. repossession letters from your mortgage provider or court orders etc
Posted: Mon Jun 30, 2008 7:57 pm
by chris.g
We were advised against this by the CAB. Apparently, these companies are ok for the first 1-2 year then they force you out of the property....
Posted: Mon Jun 30, 2008 7:58 pm
by MelanieGiles
Not all of them do Chris! I know of a very reputable company I could recommend, but it is important to understand that BTR is only suitable under very special circumstances, and is pretty much a last resort.
Posted: Tue Jul 01, 2008 6:00 pm
by chardonnay
Hi Melanie,
Could you let me know who the companies are as I've been looking into this. My reason for asking is with the falling property prices I am heading towards negastive equity so can't see what selling will gain. I know I may get an extension on the six months to sell my house, but if I could get enough to pay off the mrtgage and loan secured against it I think it may be an option (especially if my head inury claim apys out)>
Many thanks,
C
Posted: Tue Jul 01, 2008 8:59 pm
by MelanieGiles
Chardonnay
Could you e-mail me direct to my website and I will send you the details, or as you are in Cardiff you could pop into the office for a chat about this.
Do bear in mind that most companies will only pay up to 80% loan to value, so if you are heading for negative equity the product will be unsuitable for you.