Those individuals who are threatened with the possibility of losing their home may wish to avoid the devastating consequences by considering a sale and rent back agreement. There are specialist companies who will buy your home from you and then allow you to rent it back for a fixed rental period.

A sale and rent back agreement may work for many situations where the individual is having problems financially. Home reposession is of course one of the main uses for using a sale and rent back agreement. This may even apply to those cases where proceedings are already in force. It can also be helpful for those going through divorce, or for those who wish to release the equity in their home when needing a substantial amount of cash.

Those offering a sale and rent back agreement typically take into account such things as the value of your property, the average rental figure for the area in which you live and how much you would be able to pay in rent.

The company offering the sale and rent back typically offer around 70% of the full value of your home, so you do need to bear this in mind. Also consider the fact that while you are able to remain in the property by renting, there is a limited time on the rental period, usually 5 years.