Hi I have a close friend who is in big trouble, and I don't really get what is going on here, so if someone can give any advice at all, it would be great. This seems to be a grey area as far as I can see (with no access to land law cases).
Events as follows -
1) A has mortgage and has fallen into arrears, is to be repossessed. 2) A puts house on market fast with several estate agents. 3) One of the agents sends around a person who might be able to help them quickly by buying their house, call him person B. 4) Person B offeres a sell and rent back scheme, but not like the usual ones where you just sell at a discounted price for a quick sale and then rent the house back from person B. This deal means that person A sells the house at full market value, but doesn't get the money - the price is £150k but they only get £120k - they get an option to buy the house back after three years, so effectively person B is keeping £30k of their money. 5) Person B arranges everything, including the solicitor. Person A has to pay all proposal and legal fees (unlike the usual rent-back schemes) 6) Person B then starts to say that they owe more money (thousands of pounds), but won't say what for, and so puts the rent up. 7) Person A can no longer afford the increased rent and so refuses to pay because they do not understand what the money is for. 8) Person B evicts person A and puts the house up for sale on the market at full price. 9) Person A challenges court order but to no avail.10) Also, in relation to 3), the estate agent who puts Person B in touch with Person A then demands £3000 commission for 'selling' the house.
Please could someone give even vague advice as to what happens now. What kind of tenancy agreement would they have had, and once they are thrown out, what happens to the option to buy back agreement? Does this just fizzle out? If so, where is the consideration for the deal?
The company lit doesn't really help but here it is.
It is not clear as to whether I am in full possession of the facts of this case - I can't get a look at the paperwork and the people involved haven't a clue about anything.
Any hints or tips as to what they can or should do next would be great. Thank you.
Also, can anyone advise if they now qualify for council housing assistance, as they seem to have been told that the council can't help them, even if they are homeless. Person A is 55 and working, his wife is 70 and is sick (cancer). They are currently sleeping on the floor of anyone who will put them up for a while. The LPO company who was renting them the house have given them a black mark on the credit register thing and now they can't rent privately unless they put down 6 months rent +, which they just don't have.