Selling your Home and Renting it Back and Rent it and Buy it Back

There are a growing number of companies that will offer to buy your home with exchange of contracts in as little as 24 hours. This can help to stop you being evicted but they will not buy your home for any where near the full market value. They will typically give you no more than 75-80% of the value of your home based on a conservative value.

Sell to rent can sound attractive and for some could work but in the long run you are giving away in the region of 25% of the value of your home. If you have a mortgage with a sub-prime lender and you are paying a premium on your mortgage payments, a sell to rent scheme may allow you to keep your home and the deal may include a subsidised rent for a couple of years being much more affordable than a mortgage payment. For most this is delaying the inevitable as at the end of the subsidised period the rent will revert to market value, if not higher possibly making the rental payments unaffordable so you are forced to leave your own home and have given away about 25% of its value.

Rent to Buy means that after you have sold it there is an option at some point or at any point to buy it back. This will usually be at market value or near market value and for most this is never achievable and is a false hope.

A good and fair scheme however if it exists would allow you to sell your home at under market value, give you an affordable rental payment that would be cheaper than a mortgage payment and then you buy it back at the full market value in a couple of years time so that the temporary owner can gift a deposit allowing you to buy it back without having to find a deposit. You will then likely gain a competitive mortgage as you have made all your rental payments on time and hopefully will not have to find a deposit. The person or company that temporarily owns your home will make some money but part of this is regained due to the rent being less than the mortgage payment if you are paying a premium mortgage payment. Overall though, be very wary of these types of packages which are generally preying on the vulnerable. Make sure you take advice from many people, including The Citizens Advice Bureau, maybe speak to a solicitor and also see what finance options there are from a mortgage broker.

If you decide the only option is a quick sale or sell to rent make sure you get quotes from many companies. There are lots on the Internet you can find by typing in "repossession" or "sell to rent" or similar into Google or any other search engine.

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