The housing market in the United Kingdom is in as bad a shape as it is in the United States, and many residents of the United Kingdom are facing repossession of their homes because of this. Many people have lost their jobs or are facing difficulties keeping up with their financial obligations. Repossession of a home is a very terrifying concept and so people are looking for ways to save their homes when conventional methods are not an option.

 
One of the newest industries that has appeared over the last few years is the sell and rent back industry. This option allows you to stay in your home and avoid repossession when you can no longer afford to pay your mortgage. The idea behind this scheme is that a property speculator will purchase your home from you by paying off your mortgage or at a value that is below market price and they become your landlord. The sale happens quickly, and you usually get enough money out of it to pay off your mortgage and avoid repossession.

As with any financial transaction, there are pros and cons involved with a buy and rent scheme that you need to consider before going this route to save your home. Let's take a look at the pros of this option to save your home.

• You do not have to leave your home, avoiding the trauma of first finding a new place to live in and moving. This is particularly relieving for families with school aged children, because they can remain in the school they are accustomed to.
• You avoid having a repossession listed on your credit record, which will help later down the line if you need to secure a mortgage loan for another home.

Unfortunately, the cons of the buy and rent scheme outweigh the pros.

• You sacrifice your homes fair market value for a speedy sale to avoid repossession action.
• You could be trading an unaffordable mortgage payment for an unaffordable rent payment, which could have you facing eviction if you become behind in your rent.
• The house could still be repossessed if the new owner defaults on the mortgage payment, which means you are still looking at having to leave the property.
• You could be led to believe that you can stay in your home for an unlimited length of time and have the chance to purchase the home back when this not always the case.
• You may only be allowed to rent your home for a 12 month period before the new owner serves you notice that they are not renewing your lease. That means you are moving.

Not all buy and rent companies work this way, but you do need to be aware of what the worse case scenarios are. Yes, this is an easy way to avoid repossession, but you should only consider it if you are using a reputable company. Research the company and verify their reputation before signing any paperwork that could take your home. Ensure that they are offering you a fair and reasonable deal on your home with a sensible repayment price and a clause built into your lease that will allow you stay in the home for a long period of time or the option to buy it back from the company when you are once again solvent.