It had been reported by the online portals that Sell and Rent Back is fast gaining popularity. The rise is so swift that the rise in enquiries has increased 30 times more compared to the year 2007. According to Baggy Tiwana, the Managing Director of The Property Buyers, one United Kingdom’s leading property web site, people have been showing steady interest in selling their homes so that they can rent it back. It is because of some unethical companies that have been trying to cash in on this new phenomenon that sell and rent back concept is decried by many. These unscrupulous companies have been buying properties for as less as 18 to 65 per cent of the market value. These companies, trying to make the best use of the situation, must not in any circumstances be allowed to deal with the already unfortunate property owners.

Many home owners have preferred to opt for sell and rent back as they have found out releasing the equity of their homes and renting it yet again is far more beneficial. In simple terms, sell and rent back is concept in which the home owners sell their homes to a housing company and they in turn clear the debts, mortgages and other payments on the property. After this is done, the property is rented back to the owner for monthly rent. The home owner has the right to purchase the property back if the situation so warrants. This allows them to retain the house and stay in it without having to move out of it. This concept has found patronage among the people and there have been a marked rise in the number of enquiries over this. While in the year there were about 15 to 20 such enquiries every month, it shot up even further ever since July 2007.

But why do people prefer to sell and rent back? The reason is that they cannot afford the shifting charges at that point of time. Moreover, it saves the time and effort for looking for a new home. Yet another major reason is that the rise in the mortgage rates. Due to this rise, many property owners were unable to pay the mortgage amount. In many cases the homeowners had been relying solely on their credit cards to purchase the essential after paying up the mortgage payments. With the danger of repossession looming large they opt for sell and rent back. Sell and rent back is the best option as the home owners are not in the danger of losing their homes. Reports suggest that while going in for sell and buy back scheme the home owners must be in a strong position to negotiate the terms such as low rents, non rent periods, buy back option with a fixed price etc. Sell and rent back seems to be the best way to get out the most difficult times. It offers the home owners the piece of mind and the ability to stay in their property.