Many people seek out debt advice to come out of their situation, but unfortunately they are unable to juggle their finance. They end up with the decision of selling their house. The sell and rent back is the right decision to make at this crucial time. Nowadays, there are many real estate agents, who get engaged in such schemes.

The scheme of sell to rent back is beneficial for both realtor and seller. Real estate agent takes it to be worthy investment as he gets the regular income from the very first day of his investment. The yield of return on investment is good enough to invest your hard earned money.


Sell and rent back scheme not only helps you to raise immediate equity but also helps you to avoid relocating. It gives you a special advantage of avoiding you name to be black listed. Thus, you do not lose your ability to have the credit again. In this process, your family will get the chance to pay off their debt and stay at the same place for some more time, specified at the time of agreement.

The Financial Services Authority (FSA) regulates the sale of these schemes. This means, for example, that firms must treat you fairly when selling you a scheme and their advertising must be clear, fair and not misleading. Make sure you deal with a regulated firm so you will have access to complaints procedures if things go wrong. To check if a firm is regulated please contact the FSA. They are currently consulting on further rules to give greater protection to consumers and which will come into force next summer.

Sell and Rent Bank scheme is not the same as a Home reversion, which is for people who have paid off their mortgage and want to sell part or their entire home for cash and keep the right to live in it for a nominal rent. Selling your home in this way may allow you to clear your mortgage debts and stay in your home, but you will no longer own it.


Under the Home reversion method, you will normally be paid less than the full market value of your home. You should check how long you can stay in your home as your rental agreement may not be renewed, so you could still have to leave after the initial term, usually 6-12 months, comes to an end. You could still be evicted if you breach any of the terms of your tenancy, for example if you fall behind with your new rental payments. If the person or firm buying your home gets into financial difficulties, the property could still be repossessed and you might have to leave.

Therefore, you will need to think carefully before entering into such a scheme and make sure you understand the consequences. For a guide on how it may affect your right to Housing Benefit, read the Advice for homeowners – sale and rent back leaflet from the Department for Work and Pensions (DWP). If you are unsure, talk to a free and independent money adviser.