Selling one's house and staying back in the same house against a rent is termed as . This situation takes place due to failure in mortgage payments to the lender. There are several companies in United Kingdom which purchase such homes for less than the market value and rent it back to the house owner at market rent. These companies usually pay 30% to 40% less price than the market. Sometimes the payment is less than their mortgage amount. Homeowners settle their existing mortgage and other outstanding debts with the sale money while remaining in their own home.

People choose to sell their homes for tens of thousands of pounds less its worth in the fear of repossession due to mortgage arrears or may be of large personal debts. Selling home is a simple way to come out of trouble.

Companies of sale and rent back promote by claiming to get 85% of the property's value. Moreover, they promote themselves by saying that the neighbours will not come to know about the deal and children can continue to attend the same school.

The internet boom has allowed quick sale companies to have wider reach with a very little set up cost. Some of them are a part of big property groups. Before considering sale-and-rent-back, one should explore all other options. Get number of quotes from several companies and then ask serious questions about tenancy details and rights. It is essential to take great care of your dealing while taking such steps in adverse situations.

The reasons why one wants to sell-and-rent-back house are as mentioned below:

?One is stuck in a chain.

?Facing credit problems.

?Facing repossession threat.

?Divorce, separation or end of relationship. The couple needs to break free of the mortgage.

?May be one don't like dealing with estate agents.

?May be one do not want lots of strangers coming to the house frequently.

?Any other reason for a quick sale.

Disadvantages of sale and rent back house

?Selling for less than the market value and then end up paying rent at the market rent.

?One sell house when he or she is in urgent need of money. Quick sale companies take full advantage of the situation while negotiating.

?Most of the quick sale companies provide unregulated services. They offer no security in terms of tenancy or rent levels.