The basics of the business are simple. You have managed to mortgage yourself right up to the shoulder. Your fixed term’s come to an end, mortgages aren’t what they once were and now you’re in arrears. The message you’re getting from your lender is on the lines of ‘if this continues, you – and your family – might want to consider packing.’ It’s at such times that the sell-and-rent-back company ‘comes to the rescue’. They will buy your property from you, quickly, in cash – but often at more than 20% less than its market value – and let you stay there at a rent you can afford. You don’t own the place any more but, let’s face it, you didn’t really before. And at least you stay in the property. They get a cheap portfolio and zero void. Cool all round. Except when it isn’t.

Our publisher, on sell-and-rent-back, in his guest column for Citywire.

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