Greater protection for sale-and-rent-back homeowners
Sunday 27 June 2010
People who choose to enter into sale-and-rent-back property arrangements will find that they have greater protection under new Financial Service Authority rules.
For starters, the FSA says that it will ban "exploitative" and "emotive" advertising of the schemes, under which individuals sell their homes to a company on the understanding that they will be able to continue to occupy the property as tenants. The schemes have been roundly criticised by consumer groups for paying under market value and for instances where the former owner has been given notice to quit by their new landlords soon after the sale had gone through.
To counteract this, in future, the FSA says that sale-and-rent-back tenants should automatically be entitled to live in the property they have sold for a minimum five years as a tenant, provided they pay their rent. To prevent people entering into sale and rent back too lightly, the FSA will also ban cold calling and door-to-door leafleting. "With cases of vulnerable homeowners evicted from their homes six to 12 months after selling to unscrupulous sale-and-rent-back companies, tighter controls were vital," said Lesley Titcomb, the FSA director responsible for the mortgage sector. "The process is often used by those who want to sell in a hurry to stay in their home, and so it is vital that they are better protected during a difficult period financially."
- 1 Tears and cheers as David Beckham ends glittering career after helping PSG to final win
- 2 Heading for America? Prepare for the longest US immigration queues ever
- 3 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 4 David Cameron goes to war with press over 'swivel-eyed loons' slur
- 5 It’s official: thanks to Stephen Hawking's Israel boycott, anti-Semitism is no more
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...
£450 - £500 per day: Orgtel: Sourcing Manager - Banking - London - Up to £500p...
To be discussed at interview.: Queen Elizabeth's School: An experienced and ef...
£294.05 - £330.92 per day + 150 per day travel and accommodation: Orgtel: A le...
Day In a Page
A five-bedroom bungalow in Hoveton with riverside garden and mooring dock, £550,000
A refurbished one-bedroom flat with south-facing reception and high ceilings. £579,950
A four-bedroom Grade II-listed house in Nazeing with large gardens. £550,000
A modern four-bedroom house in a converted stable within walking distance to Peckham Rye. £695,000
Three-bedroom house in a quiet residential area within close distance to Battersea Park. £450,000
A three-bedroom cottage within commuting distance of London, Norwich and Cambridge. £250,000
A two-bedroom cottage with a sun room and gardens in South Chard. £350,000.
A three-bedroom semi-detached house with original features including fireplaces and wooden flooring. £399,950
A modern two-bedroom flat split across two floors and close to several public transport links. £595,000
A one-bedroom flat with an open-plan reception/kitchen and private balcony. £315,000.
A bright two-bedroom garden flat between South Acton and Chiswick Park. £499,950.
A listed four-bedroom farmhouse with stables, set in four acres. £500,000.
A three-storey family home with four bedrooms and an extended kitchen/diner. £995,000.
A three-bedroom Hamstone cottage in the rolling Somerset countryside. £430,000.
A luxury one-bedroom apartment on the first floor of a converted Victorian house. £425,000.
Three-bedroom semi-detached house with private parking and a rear garden. £249,995.