Homeowners who are struggling with debt management concerns have been warned about some of the potential pitfalls associated with sale and rent back schemes.
The price comparison firm Fool.co.uk has suggested that more than a quarter of British homeowners believe they could live in their property for as long as they would like if they enter a sale and lease back deal – but this is not always the case.
And close to 15 per cent of people think that they would receive the full market value for the property under the terms of a sale and lease back scheme but prices paid under these circumstances are typically unfavourable for sellers.
“I would urge anyone considering doing this to do their research,” said Donna Werbner, property expert at Fool.co.uk.
“What is particularly shameful about these schemes is that they are targeted at homeowners facing repossession – so people who are at their most financially vulnerable.”
According to Credit Action, the typical British household has a debt management mountain worth close to £58,000, including their mortgage arrears.
By Dan Mather