Business and Finance

Sell and rent back has been in existence for many years. In the past, there have been a number of cases where companies or individuals have entered into a sale and rent back agreements, promising the owner the opportunity to remain in their property for as long as they wish.

However, the reality in a number of cases is that after a period of six months, the owners have been served notice, evicted from the property, and left homeless by unscrupulous landlords and the property sold at a large profit. In addition to this, there have also been cases where mortgage companies have repossessed the homes of these individuals as the landlords have been unable or unwilling to make mortgage payments on the homes in question.

In response to this, the FSA has taken the step to provide security to those wishing to sell their home whilst remaining in the property for the long term. The FSA have asked all companies and individuals that operate in the sector to apply for ‘interim authorisation.’ From the 1st of July 2009, all companies wishing to continue working in the sale and rent back sector had to apply for this authorisation by the 31st July 2009. Any company not submitting an application by this date is NOT permitted to conduct business in this sector from 1st August 2009.  Read more...

The Regulation of Financial Services Act 2005 is one of the most important pieces of regulation that sell and rent back providers will have to deal with. This is a law that works to help with getting all providers to be sure that they report their processes correctly. This is so all providers in the United Kingdom can be interpreted as legal ones that work with security and fairness in mind for customers. It also works in order to make all activities and processes that a provider can work with ones that are fair for everyone.

The RFSA 2005 was created as a law that works for the Financial Services Authority. It works to help with regulating the processes that are involved with a variety of different UK financial services. The sell and rent back processes that have become popular in the UK over the years are among the processes that are covered here and are going to need to be well protected in order for them to be used properly be people around the UK.

The RFSA 2005 officially defines a sell and rent back plan as a plan where a provider will work as a group that buys a property and the homeowner who will continue to live in that property as a renter will be identified as the seller of the sell and rent back agreement. This agreement will work with a proper payment schedule where the seller pays rent to the provider.  Read more...

Compare Property Buyers have now been regulated by the Financial Services Authority to offer advice on UK Sell and Rent Back Schemes. Compare Property Buyers are completely independent and operate a treating customers fairly policy to insure fair play for users of Sell & Rent Back schemes.

Since the start of the credit crunch in late 2007 there have been a growing number of private investors and investment companies offering to buy property and then rent it back to the original owners, this sector has now grown into what has become known as the “Sell and Rent Back” Industry.

Although most investors operate in an ethical manner there were some concerns shown by various groups to protect the interest of the consumers involved, and so after a brief consultation period the Financial Services Authority released details of the regulatory framework for the Industry.

The main aim The Financial Services Authority in Regulating the Industry was to protect the interest of vulnerable consumers who, due usually to financial problems exacerbated by the credit crunch, were sometimes seen to be selling their homes on unfavourable terms.

From August 2009 any company wishing to work in the Sell and Rent Back sector must be authorised by the Financial Services Authority. Initially from August 2009 until Late 2010 there will be what is known as “interim” regulation and full regulation will begin around the third quarter of 2010.  Read more...