Beware of Illegal Sale & Rent Back Firms
Since the introduction of the Financial Services (FSA) Authority regulation into the Sale and Rent Back market on 1 July 2009, approximately 900 companies/individuals previously offering a Sale and Rent Back product have failed to achieve authorisation . Only a small number of companies (approximately 10) have now achieved FSA authorisation so far. A large number of so called Sale and Rent Back firms are now operating illegally by continuing to market and operate their Sale and Rent Back services. Any company or individual continuing to operate without FSA authorisation now faces prosecution.
In recent years there have been many reports of rogue operators having caused significant distress to homeowners by offering lifetime tenancies upon the sale of their property only to renage on their agreements shortly afterwards. These companies previously used tactics such as increasing rents to an unrealistic level just six months into the tenancy in an effort to ensure that the homeowner fell behind with payments. Other practices included simply serving notice for the tenant to vacate the property just six months after completing on the sale of their home in order to gain vacant possession of the property so that it could be sold on the open market for a quick profit.
Should you be considering selling and renting back your property it is vital that you check with the FSA Register that the company you are planning to sell to are authorised to offer a Sale and Rent Back product.
Should you find that a company/individual claiming to be authorised is indeed not, you may wish to report this to the FSA via telephone number 020 7066 1000.
We are pleased to report that National Property Buyers recently became one of the very first companies to achieve authorisation from the FSA with permission to carry on Sale & Rent Back business. As a result of many companies deciding not to seek FSA authorisation, National Property Buyers is now one of approximately just 10 companies offering a regulated Sale & Rent Back product.
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