Perhaps a homeowner’s worst nightmare is the prospect of repossession. This often happens when a homeowner simply cannot afford to pay their mortgage, usually for a period of up to two months. Repossession not only affects a person financially – it can be an emotionally devastating experience too.

One effective solution to the prospect of repossession is to do what an increasing number of people are doing - sell your house and immediately rent it back. This is basically exactly what it sounds like – a company buys your property from you and you then immediately rent it from them.

Homeowners have several reasons for doing this. Many people who sell and then rent back their home simply have no choice – they are faced with repossession, have too much debt or are in arrears with their mortgage. Around 60% of people in the UK who are considered to be living in poverty actually own their own home.

Some people sell their home this way due to ill health or the need to relocate quickly for personal or work reasons. People who emigrate also find that the Safe Sell and Rent-Back option can be an effective solution. Couples who are going through a divorce can benefit from this strategy, as it allows one of the parties to remain in the home.

Some people who safely Sell and Rent-Back simply prefer the benefits of renting rather than owning – and without actually having to move. Their monthly rent may be cheaper than the mortgage payment and if you rent, you are not responsible for any repairs to the property – these concerns are then the owner’s.

Homeowners who are concerned about falling property prices may also want to consider selling and renting back. This way, if you sell now you lock in any profits at today’s price and potentially make the maximum profit. You also avoid dealing with estate agents by selling your property this way.

Selling your home this way also allows you to access the equity in your home without actually taking out a second mortgage. It also appeals to those who want to avoid expensive Equity Release schemes. These are generally aimed at older people and can be difficult to accurately evaluate the cost.

The advantages of selling and renting back are clear – you get to stay in your own home; furthermore you usually get to keep your existing furniture and fittings. Your weekly or monthly rent is assessed fairly and based on other comparable rentals in your neighbourhood. You don’t have to deal with an estate agent or have to worry about your buyer changing their mind - and the sale goes through a lot faster.

You also usually have the option of buying your home back again for yourself at a later date, once your financial situation has improved. Buying back your own property is usually at a fair market price for the type of home and area.