Hi,

Rep turned out to be the actual property investor who runs the 'business'. She was very informative actually and answered all the questions I had.

However, I talked to my neighbour who works for the solicitor she says she uses. This much was true but the word is she hasn't completed a sale in 6 years so I think I'll be side stepping this one!!

Wasn't entirely convinced from the outset but thought it was worth looking into as a possible alternative to the 'quicksale' approach.

How did you get on with their rep?

This sounds like a 'scheme' (not in a good way).

If they are willing to buy the property then you should sell it and complete it asap, not wait for 3 years, where your name would still be on the mortgage and you would still be liable should they fail to make the payments.

To me it would appear that a clear straightforward sale would be a better option for you.

Sparky.

Thanks for the reply, I was hoping someone like yourself would respond (read your posts/replies on several topics).

I totally agree with you, this will only benefit them in the long run, which I accept. However, I do get to move on and, in terms of them selling the house at a higher price in the future, I would have to 'suffer' that whoever I sold to.

To clarify the financial position a little:

1. House valued at £130K (realistically selling at £125K)

2. Existing mortgage £88.5K

3. 2nd charge £36K

This leaves a balance of £500 if I sold for £125K. To add to this, I do have £14K saved to use for a deposit on a new house.

Taking away around £3K for legal fees (assuming no estate agent fees in this deal but including stamp duty on a new house worth around £220K) I'd be left with around £11.5K.

All this means I am looking for a 95% mortgage on a house around £220K unless I can arrange a vendor gifted deposit of 5% to go with mine making a 90% mortgage a possibility.

Just wanted to put it in a little more context.

Anyway, rep is visiting in an hour so I'll probably end up posting again on the results of the meeting.

Thanks again.

Generally speaking, complicated scemes only benefit whoever drew up the scheme. If you talk honestly to your lender it is quite possible that they will let you take some negative equity to another property.

Hi, I have been approached by a property investment company about buying my house.

I have discussed the minimum price I will accept (pretty near market value) and they are still keen to make an offer.

I have made it extremely plain that, being in a near negative equity situation, I have no room for movement on the asking price.

They have given me an outline idea of how they would approach the sale which is to:

1. Agree the selling price.

2. Delay exchange of contracts until an agreed time (possibly as much as 3yrs time).

They have said they will have to prove to my lender that they will service the mortgage thus removing all financial obligation for me and allowing me the freedom to go and find a new mortgage for my new house.

They have also stated that, until we exchange, legally, my name will have to remain on the title deed.

My concern is how this will affect me in relation to any ongoing liabilty.

No cash will change hands just their proof to my lender that they are legally bound and able to take on the payments on my behalf until the stated and agreed date for exchange of contracts.

They said the nearest thing to compare it with is a Buy to Let type set up (proving to existing and new lender that mortgage payments are covered).

Down side: I have to watch my house being sold in the future at a higher price (in theory and their risk I guess)

Upside: I get to move onwards and upwards.

Any advice on this and obvious risks appreciated.

Representative coming to see me tomorrow evening to discuss the 'scheme'.

Thanks.