Sell and Rent Back

Sell and rent back is a relatively new type of property transaction whereby firms buy homes from individuals, usually at a discount, and then allow those individuals to stay on in the property as tenants. These sell and rent back deals are often sold to people in financial difficulty and potentially facing repossession. Sell and rent back typically allows individuals to stay as tenants in their property on assured short hold tenancy agreements.

In the current economic climate, the number of people experiencing mortgage difficulties, and possibly repossession, is rising. This is likely to increase demand for sell and rent back. Simply put, when your finances are bad and mortgage payments are too much, at best you can either move into a smaller property, or at worst, face eviction. The third option is to sell your property to a company that will let you rent it back from them, hence the term 'Sell and rent back'. The result is breathing space to re-manage finances, get back on your feet - and in some cases buy your home back afterwards. You’ll sell your property at a lower than market price (sell and rent back) on the basis that the agreement and sale can move through quickly. It’s an arrangement of convenience, and infinitely better for some people than facing bailiffs and being thrown out of your own home. Selling a property on the open market means an inevitable wait. Depending on the property type and area, and especially demand, in less than optimum conditions you could be waiting months for a sale to be agreed - and then another 2-3 months for the sale to conclude.

If you are considering selling and rent back your home be sure to check out the credibility of the buyer. Find out how long the buyer has been operating sell and rent back for and always seek independent legal advice before proceeding with a sell and rent back transaction.