Sale-and-rent back companies are targeting those struggling to the meet the cost of living in their homes.

Firms offer to purchase homes at below market value and rent them back to the former owners. The majority of no guarantee beyond six or 12-month tenancies, leaving the former owner at risk of being evicted at the end of the tenancy.

Equity release providers, and activity regulated by the Financial Services Authority, fear that the unregulated sale-and-rent back schemes are putting vulnerable groups at risk. Pensioners could be attracted to sale and rent back when considering Equity Release.

Unless the owner takes independent advice from their solicitor they may not be aware that they face losing their homes.

Before entering into a sale and rent back scheme you must take Independent advice from a solicitor or from an Independent Financial adviser. There may be better alternatives.
If a Sale and Rent back is deemed the only solution to your problem get some advice to compare the firms that are offering the service.

You would think that things would get better not worse but it appears that this is not the case and we recommend that you read the excellent blog by Janet Walford of Money Management on the subject of Sale and Leech

http://www.oft.gov.uk/news/press/2008/118-08