Sale-and-Lease-Back
Although not common in England for residential property, these agreements are sometimes made between a company and a homeowner who is at risk of repossession. The buyer will purchase the property, often at less than market price, with a provision that allows the homeowner to buy it back after an agreed period. These transactions can be complicated, so those who are considering one should get professional tax and legal advice. In the U.K., the Office of Fair Trading is considering whether the sale-and-lease-back industry should be regulated after a series of reports of unscrupulous companies evicting tenants at short notice. If you believe this could be your only option to avoid repossession, the government runs a similar scheme called Mortgage Rescue, which you should consider first.
