Companies offering a sale and rent back agreement may be a lifeline to those who are suffering difficulties financially. The sale and rent back agreement typically allows those who would otherwise have their home repossessed the option of selling it and then renting it back for a fixed period. It is important to bear in mind that the rental period is usually fixed at 5 years.

Sale and rent back agreements may be one way of obtaining repossession help and not having to suffer the hardship and humility of having to leave your home through eviction. However, there are certain factors that have to be considered when looking at taking this choice.

One consideration is that you would not get the full value of your home but only around 70% of it. However, you may get a sale of the property that can be completed in just 4 weeks. There would also be no estate agents fees to pay and the buy and rent back company would pay the costs of the solicitor on your behalf. Think carefully before you sign your home over to a company offering a sale and rent agreement and check out all other options as there may be more suitable ones out there.