For the growing number of British homeowners considering a rent and sale option to ease financial problems or cash in on a decade of booming property prices, there are several points to consider.

Rent and sale is looking like an increasingly attractive option as mortgage holders have been hit by a succession of interest rate rises – with a banking "credit crunch" signalling no guaranteed end to the pain in sight yet.

Here are some of the top points to consider when it comes to rent and sale:

What are the main benefits of rent and sale?
Homeowners can have tens – sometimes hundreds – of thousands of pounds locked away as equity on their property. In a fast-rising housing market, that's all well and good – but if you need the money due to an unforeseen circumstance like debt, medical care, separation or job loss, it's hard to get at.

That's why, in the face of an uncertain future for the housing market, many people are choosing to sell their home and rent it back from the buyer. They cash in the equity in their property and hand over responsibility for its upkeep to the new owner. Instead of paying a mortgage and the repair, insurance and maintenance bills, the seller only pays rent.

Rent and sale can be particularly attractive to people in arrears on their mortgage as it means they can keep living in their home, which might otherwise be repossessed.

What if property prices keep on rising?
House prices are widely predicted to stagnate or fall during 2008 and beyond – although many experts aren't so gloomy and, over the longer term, prices are likely to go up again. But that could be years off – prices fell in 1991 and didn't recover until 1997 – and lots of property investors are putting their money elsewhere until the future is more certain.

Anyone who has the luxury of keeping a cash lump sum aside after they've completed a rent and sale transaction may want to invest it somewhere it will grow, or even in a high-interest savings account, so that they have a deposit to buy another house should they wish to buy again in future.

Why consider rent and sale when renting is money down the drain?
British people widely consider renting to be money down the drain – but their view isn't shared by people in many other countries. While 70 per cent of Brits own their own home, only 59 per cent of Americans do, and only 40 per cent of Germans do. Renting is frequently seen in other countries as a low-cost alternative to a mortgage that allows more money to be invested in more profitable areas (like long-term stock market investments, for example, which have outperformed the housing market over decades).

It is equally arguable that mortgage interest is money down the drain, as well. Renting a £100,000 house might cost £450 a month – around £15 a day. But someone who has just taken out a £100,000 mortgage will be paying about the same amount in mortgage interest and still has the £100,000 to pay back as well.

The interest does go down over time, but a £100,000 property can easily cost £200,000 or more over the term of a 25-year mortgage.

What if I want to move quickly?
Many companies will let you complete a fast rent and sale arrangement. Selling a property on the open market can take months, making securing a fast sale worth looking into.

One of the main advantages of renting, wherever you are, is that you can move home in a matter of weeks, should you want to. The whole process when buying and selling properties can take up to a year in extreme cases – and sometimes takes longer

Surely owning a home provides more security than renting?
If setting fire to the curtains and ripping taps off sinks are among your hobbies then the answer may well be yes. But for most people, renting provides as much security as home ownership, if not more.

Landlords are principally landlords for business reasons – and there's little business sense in evicting responsible tenants who pay the rent on time. If you don't pay the rent then there may be a problem – but no more than if you fail to keep up mortgage payments.

In some ways, renting can be preferable. Mortgage holders have no state safety net if they lose their jobs, for example, while tenants can claim housing benefit – meaning the state will cover their rent payments.

In addition, people paying rent benefit from the fact that the landlord has a legal responsibility to keep a property well maintained. This means that many rented properties provide better living conditions than private homes – at no extra cost to the tenants.

But isn't buying a home one of the best long-term investments available?
That depends entirely on its price. In the late 1990s and early 2000s, many properties in the UK were undervalued and represented excellent investment opportunities. And over the last 25 years or more, property has consistently delivered good returns on investment.

But those returns do not come without a degree of risk – a risk that you pass on to the buyer when you decide on rent and sale. And there are other types of investments that can provide good returns, some of which carry little of the risk. Many people now consider houses to be over-valued and are looking at selling up and investing their profits elsewhere until prices look more reasonable – when they will then look at buying again.
 
Rent and Sale with rentandsaleltd.co.uk

If you're caught in a financial house-trap, rentandsaleltd.co.uk can throw you a life-line.  Rentandsaleltd.co.uk offers a sell and rent back scheme for those who like living where they are and want to maintain stability but are facing mortgage arrears, repossession, bankruptcy and debt or concerned financial meltdown is looming. The rent and sale scheme is an alternative to selling up and moving, allowing you to stay put and find financial solutions. Rentandsaleltd.co.uk will buy your home and allow you to continue living in it as a tenant. Find out more, call Rent and Sale Ltd. today on: 08000 255 920