Adrian69
07-30-2008, 06:47 PM
Hi,
I was informed this afternoon by my wife that my Mother in Law had a gentleman phone, who she then invited round. She was told by him that his business was to buy houses, which he then renovates but allows the people living there to rent for the rest of their lives. Her house is in desperate need of repair and this guy has said he will rip the house back to bare bricks, damp proof it, replaster, replace windows, doors, move the kitchen to the dining room, the bathrrom to where the kitchen is and create a utility room - basically a complete renovation. He told her that because of the current state of the house it would be unlikely to sell for more than £50000 and so after he pays for the complete rennovation and takes his cut he would give them £15000. The man convinced her that she would never sell the house on the open market as its in bad shape. Houses on her street in a decent state of repair are worth up to £100000.
Additionally she was told by this man that she would be able to claim housing benefit to pay the rent, so she had nothing to worry about. As far as i am aware, if she profits from the house, she wont be able to claim benefits? Is this right?
The way my mother in law sees it is that its win win for her - she gets to stay in her own home, newly renovated and virtually rent free with the bonus of £15000 - she just cant see that it looks suspicious so what i need is some facts to take to her so I don't sound like an overprotective, overbearing son-in-law.
I personally think that its a very big risk. I spoke briefly to the Citizens advice, who informed me that its a very bad idea and they have large numbers of cases where people sell up, have no rights, then get evicted as the house gets sold on, while the guy with all the promises laughs all the way to the bank.
Like i said if anyone else has been involved in anything like this, or knows anybody who has, then if you could please get in touch and let me know.
He is going to call back tomorrow, Thurs 31st July, for a decision, and i fear if i can't find hard evidence that it could very well be a huge risk, they could lose their home for a mere 15K.
Or am i just being cynical ?
Ade
I was informed this afternoon by my wife that my Mother in Law had a gentleman phone, who she then invited round. She was told by him that his business was to buy houses, which he then renovates but allows the people living there to rent for the rest of their lives. Her house is in desperate need of repair and this guy has said he will rip the house back to bare bricks, damp proof it, replaster, replace windows, doors, move the kitchen to the dining room, the bathrrom to where the kitchen is and create a utility room - basically a complete renovation. He told her that because of the current state of the house it would be unlikely to sell for more than £50000 and so after he pays for the complete rennovation and takes his cut he would give them £15000. The man convinced her that she would never sell the house on the open market as its in bad shape. Houses on her street in a decent state of repair are worth up to £100000.
Additionally she was told by this man that she would be able to claim housing benefit to pay the rent, so she had nothing to worry about. As far as i am aware, if she profits from the house, she wont be able to claim benefits? Is this right?
The way my mother in law sees it is that its win win for her - she gets to stay in her own home, newly renovated and virtually rent free with the bonus of £15000 - she just cant see that it looks suspicious so what i need is some facts to take to her so I don't sound like an overprotective, overbearing son-in-law.
I personally think that its a very big risk. I spoke briefly to the Citizens advice, who informed me that its a very bad idea and they have large numbers of cases where people sell up, have no rights, then get evicted as the house gets sold on, while the guy with all the promises laughs all the way to the bank.
Like i said if anyone else has been involved in anything like this, or knows anybody who has, then if you could please get in touch and let me know.
He is going to call back tomorrow, Thurs 31st July, for a decision, and i fear if i can't find hard evidence that it could very well be a huge risk, they could lose their home for a mere 15K.
Or am i just being cynical ?
Ade