We receive many enquiries about the virtue of “Mortgage to Rent” schemes, where homeowners sell their properties to a company or charity and remain in the house, paying a commercial rent.
There are many reasons why people consider this option such as:
- Escalating mortgage payments which are becoming unaffordable.
- Marital breakdown
- Excessive personal debts.
- In many cases the sales pitch is that you can do this and then go bankrupt, thus staying in the house for the benefit of the kids etc.
In reality there may be no need for you to do this. In many cases it is perfectly feasible to seek bankruptcy or a Trust Deed and retain your property; this is an area in which we specialise .
We will gladly meet with you to discuss the pro’s and cons of this option. If selling IS the best way forward for you we can speak with (and introduce you to) our many contacts that specialize in this market.
If you are thinking about this option with regards Marital Breakdown we strongly advise you to speak with one of our advisers before you sign anything.
Care must also be taken if you intend to sign the house over to your partner, especially when you are taking on matrimonial debts or have serious debt problems. Matrimonial / Separation agreements and Bankruptcy / Trust Deed agreements are NOT always compatible and could make your position considerably worse.
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