Hello going round in circles,

If you are happy to sell the house that might be a very good way to proceed.

If you are struggling to repay creditors now you might want to let them know that this is your plan. If they can see a solution that involves them getting repaid pretty soon it can add significantly to their patience.

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Originally posted by going round in circles

Do you think that creditors would accept 50p to the pound. Would this be possible to offer this through a solicitor as an alternative to a trust deed ?

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hi gric,i was paying 13 pence to the pound and i owed ?ú118000 so fight your corner, dont give up

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Originally posted by going round in circles

Are there any companies who would buy the house of us for fair market price & rent it back to us?

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Whilst I agree with the prevailing opinion that most buy and rent back schemed operate at well below market nobody seems to have mentioned the Mortgage to rent scheme. This is run by the Home Owners Support Fund which is an off-shoot of the Scottish Executive. This scheme generally purchases at market value minus essential repair costs and they ensure properties are purchased by responsible social landlords which should prevent the scare stories of being pushed out of the home a year or so later.

This may not be a solution as it all depends on your personal circumstances etc, just surprised no-one had mentioned it as a consideration in response to your question

At worst they could always be contacted - via an approved money advisor - to see if they could asist.

A fair point, Mr Mole, but the problem is that the mortgage-to-rent scheme would swallow up GRIC's share of the profit from the sale of the property too. At best she might get back ?ú4k but I've a feeling it would be nil.

It certainly may be a viable way of clearing the debts and being able to stay in the house (albeit as a tenant), but at quite a high cost.

Whereas, if the house was sold, GRIC, then you could keep your half of the profit and your husband's half could be used to clear the debts via a trust deed. I guess you are therefore weighing up whether it is worth giving up a payout of around ?ú30k in order to be able to stay in your current home.

I hope this makes sense! Is quite a complicated situation you are in!

the regulations in relation to residual balances post sale under the Mortgage to Rent Scheme are clearly laid down

Any money left over after you have paid your debts off is called equity. Any equity will be added to the amount of capital you have, along with the surrender value of any savings plans linked to your mortgage. If this brings your capital to more than ?ú8,000 (if you're under 60) or ?ú12,000 (if you're 60 and above), you will have to pay the extra money to the mortgage to rent scheme to help with costs

That's right insolvencyboy, though it is obviously a little different when done in conjunction with a trust deed. The whole of Mr GRIC's share of the equity (ie ?ú34k or so) would be paid directly to the trustee on completion of the mortgage-to-rent sale. GRIC would only receive ?ú8k (?ú12k if over-60) of her share of the equity, so would be sacrificing around ?ú26k (or ?ú22k if over-60) which would be retained by the scheme.

I had thought that she might not get the ?ú8k/?ú12k pay out from her share - but have since checked with Scottish Government and they have confirmed that she would, which is good news.

The fact remains, though that if the house was sold on the open market then GRIC would be able to keep all of her share of the equity after the costs of the sale rather than it going into the coffers of the mortgage to rent scheme. The downside is that they would have to move, but is it worth giving up ?ú26k in order to be able to rent your own house back? Only GRIC can answer that I guess...

My apologies if this is all getting a bit confusing GRIC! I think I might discuss the mortgage to rent scheme on my blog instead for anybody who is interested, when I have a little time to spare. I can then maybe work a couple of examples without clogging up the forum with too much detail.

Hi
The Mortgage to Rent Scheme seems to only be of help to those in properties of relatively low value eg the maximum a Local Authority will buy a 3 bedroom property for in South Lanarkshire is ?ú80,000. You will get the relevant figures from CAB or Money Matters advisor.

Heres the link:
http://www.scotland.gov.uk/Topics/Built-Environment/Housing/access/hosf/hosfmaxprices