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FSA Approves Sell and Rent Back
| Although some doubts have been expressed in the past concerning the Sell Rent Back schemes in order to free equity trapped in people's homes, the Financial Services Association have now approved this market subject to a number of rules. These new regulations will be implemented early July 2009, and will be further reviewed next year. These new regulations mean that anyone participating in such a scheme will be protected and be treated fairly, and SHIP (Safe Home Income Plans) which is the organisation that oversees Sell and Rent Back schemes welcomes these new rules which mean that people access these schemes safely. Sell Rent Back refers to the market where homeowners can make arrangement with organisations to sell their property at a discounted rate and in return they receive a tenancy agreement that guarantees their right to remain in the property as a tenant. This scheme is of particular value to people who have encountered difficulties in keeping up with their mortgage payments. It has helped significant numbers of people to stay in their own homes and avoid the humiliation and ensuing difficulties that are associated with home repossession. Not surprisingly, this market has grown rapidly during the recession, and has allowed tens of thousands of people who would otherwise have had to face repossession to remain in their homes. Selling their homes on the open market has not been an option for these people due to the poor state of the housing market and the difficulty in obtaining credit. People using sell rent back are able to sell property fast, and then pay an affordable rent. This means that they do not have to move their children to new schools, or even inform their neighbours about what they are doing. The whole process is invisible to people who do not need to know. Sell and rent back is not the answer for everybody, and anyone thinking about using this scheme should take advice about whether it is appropriate for their circumstances, however when it is, it can be a lifeline. |
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For more information on the sell rent back scheme or how to use your house for some equity release, visit the experts at www.swiftcapital today!
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