Manchester sale and rent back housing firm collapses
Tenants have been told they may lose tens of thousands of pounds after a Manchester sale and rent back housing company went into administration.
The 375 homeowners sold their houses to UK Housing Alliance (North West) Ltd, which rented the property back to them.
Sellers would get 70% of the price up front and the remaining 30% after renting for 10 years.
Administrators Baker Tilly said the tenants could rent as normal but 30% payback was no longer guaranteed.
A meeting between the tenants and lawyers for Manchester law firm Berg Legal which represents 150 householders and admnistrators for the company was held earlier.
Jean Foley, from Oldham, said it was likely she would lose £40,000, amounting to the 30% she would have received on the sale of her home.
Bruce Mackay, a partner with Baker Tilly, said the firm would do all they could to help those affected.
"We do not want to cause unnecessary panic, but we do not want to give people false hope either.
"The main aim of the meeting was to update the housing firm's creditors and to stress that we would not be putting any of the properties on the market at the moment.
"We want to stabilise the rent collections and get a routine back for tenants. Then we will start to look at the markets and decide what is the best strategy to take."
UK Housing Alliance (North West) Ltd was established in 2006 and was based in Didsbury.