You may have heard of companies that buy your home from you and then allow you to rent it back so that you are able to stay on in the property. If so you may have also heard that you do not get 100% of the value of your property usually. However before you go thinking that this is very unfair you may wish to weigh up the pros along with the cons that come with selling property and renting it back.

First of course is the fact that if you are threatened with repossession of your home your options are very limited, if you wish to remain in the property. Rather than lose your home you are able to sell fast and pay off the mortgage with the cash from the sale. When considering taking a sell and rent back agreement you have to be aware that while there are no fees to pay for the sale you typically receive about 70% of the value of the property.

You also have to bear in mind that while you may be able to rent back, the rental period is generally fixed for a period of 5 years, this means there is no lifetime guarantee than you are able to stay in the property.