.....If the Homeowner satisfies the means test then the property is valued and a purchase price is determined. Unfortunately, it would be irresponsible of us to attempt to record, list or explain the means test or try to determine a Homeowners likelihood or qualification for the scheme, as we do not administer the scheme and the criteria appears to differ from one area to another.

The Rescue Scheme was announced by the government and the Media long before it was ready to be put into action. However, with the ‘Bad Press’ that was being generated about repossession, the Government had to release news to demonstrate they were doing something about it.

This potentially did more harm than good, it created a huge amount of confusion as nobody knew who was supposed to be administering the scheme, the Government failed to mention that it had a limited roll out area in the first place and many Homeowners wasted valuable time chasing a scheme they would not qualify for.

There are conflicting reports of how many Homeowners have actually been assisted by the scheme, however, our understanding is, that significantly more Homeowners have been assisted than the media has portrayed.

Thankfully things have caught up, and you can now at least be assessed for eligibility for the scheme in the space of a few weeks, however, as explained above, there is a means test and a maximum purchase price imposed on any purchase which may depend on your Lenders acceptance.

The scheme is in place, and being a Government scheme, it is free of any cost to the Homeowner to make an application. We therefore encourage people to at least explore the scheme; however, the majority of the clients we assist prefer not to give up the ownership of the home, have negative equity, or no longer wish to remain in the property by renting it back.

It is important to note that while you are in the process of applying for the scheme, you can still be evicted. Extensions to enable the scheme to be assessed and completed are achievable but are certainly not automatically awarded. You must therefore seek advice.

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However, you will not be eligible for SMI if you are receiving “Contributions” Based Jobseekers allowance. If you are unsure as to which version of Jobseekers allowance you receive, the Department of Work & Pensions will be able to tell you with a simple phone call.

Families where one of the partners is working are usually receiving a “Contributions” based allowance whereas if the household income is nothing, then the qualification will usually be on Income based allowance.

SMI does not pay out for the first 3 months of unemployment, and will only pay out the Interest on the mortgage and if your mortgage contract is Capital repayment, your Lender could argue in court that you are still not meeting your contractual commitment.

Additionally, the SMI will not necessarily pay the WHOLE of the Interest on your mortgage. Further borrowings that have been made against the property for debt consolidation, and non-essential home improvements will not be covered. With this restriction in the level of further benefit you will receive it is often very difficult to maintain the additional payments. If the full contractual payment cannot be maintained then the Lender can still apply for possession proceedings against you.

Qualification for SMI therefore does not automatically mean you will be safe from Repossession proceedings or Eviction.

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The idea is that the rent is less than your mortgage and you can therefore afford to stay in your home, without the EMBARRASSMENT of being evicted.

Sale & Rent Back is a NOVEL IDEA and can serve a purpose in some areas however; it is no secret that you will be offered a maximum of 70 to 75% of your properties value. Consequently, while many Buy & Rent Back or Sale & Rent Back companies offer a “no fees service”, you will give away 25% of the properties value and if you don’t have that much equity the Sale & Rent Back company will not offer to buy your home.

Most importantly, once you have sold your property, you are simply a tenant. You can be served a notice to be evicted at any stage, either by the Lender of any Finance / Mortgage used to buy the property or by the Company themselves if they give you sufficient notice.

There are some companies focused upon this area that are a lot more unscrupulous than others, however, many of these have been weaned out with the introduction of Financial Services Authority (FSA) regulation. If you are considering this option, you need to ensure that the company is registered with the FSA.

It is often much more beneficial to sell your property on the open market in the first place, however, your Lender may not wish to provide you time to conduct this. We may be able to assist in negotiating more time with your Lender and or the courts to provide you with sufficient time to sell your property.

You have to be very careful that you are approaching your situation correctly; we do not encourage Buy & Rent Back in the commercial sector, however, there are government assisted schemes available that will offer you up to 97% of the value of your property which we have explained in another section.

Whether it be from family and friends, a loan company, a remortgage or even a loan shark, borrowing more money may help to postpone an eviction, but it is only a temporary solution, once you have made a lump sum payment to your Lender, the money is theirs, you cannot ask for it back. 

Importantly, if you miss a further payment or even half a payment after paying a lump sum, you Lender can apply directly for a new eviction, putting you in an even more difficult position.  Therefore you should seek advice before paying a lump sum. 

In most situations, the money you have borrowed will have to be repaid and you will have therefore increased your level of debt, and the outgoings that you were struggling to afford that led you to your present situation. 

Therefore we do not encourage Homeowners to borrow more money; despite what your lender may say, you can stop an eviction order or postpone court action without paying them a lump sum. This is not however a straight forward process and will not be welcomed by your lender, you will therefore need to seek advice.