PRLog.Org - Sell And Rent Back FSA Regulations

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                                          Sell And Rent Back FSA Regulations

       By TheChainBreakers
       Dated: Aug 19, 2009

       Beware Of Buying ‘Rent Back' Property From 1st August Sell And Rent Back Is FSA Regulated You Could
       Face Prosecution!

       Beware Of Buying ‘Rent Back' Property
       From 1st August You Could Face Prosecution!

        Please take 5 minutes to read this very important sell and rent backinformation:

       Many of you will be aware that the Sale And Rent Back (SARB) market is being regulated by the Financial
       Services Industry (FSA) from 1st August 2009.

        What many investors are not aware of is how far reaching and stringent the new regulations are and how
       unscrupulous property companies could leave unwary investors ‘sitting ducks' for FSA prosecution.

        But first, why has the Government regulated the SARB market?

        The simple answer is to protect rent back tenants from some of the bad practices which have led to them
       losing their homes prior to the introduction of regulation.

        In the past those selling their home and renting back have been promised long term tenancies at a below
       market rent only to be given a short 6 month AST. At the end of this 6 month AST many tenants were
       given the ultimatum of either paying a substantially higher rent or losing their home.

        Other homeowners were promised ‘100% of your home's value' but were given 70% or less now with the
       balance of 30% due years later and then only subject to highly dubious contract conditions.

        By far the greatest problem has arisen from those companies/investors who bought substantial numbers of
       rent back properties only to default on their mortgages. In these cases the previous homeowners, now
       tenants, have faced eviction which is exactly the situation they were trying to prevent when they sold their
       home.

        These unacceptable practices have led to the Government regulating the SARB market under the authority
       and supervision of the FSA.

        What exactly does FSA regulation mean?

       In short it means that the only companies/investors who can legally buy rent back properties from 1st
       August 2009 are those who are officially authorisedand regulated by the FSA. There are no exceptions.

        Furthermore, only companies/investors who were involved in the rent back market prior to 1st July 2009
       are allowed to apply for FSA authorisation. There are no exceptions.

        A property is deemed a rent back property if the homeowner sells and rents it back at anytime in the future.
        There are no exceptions.



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 An investor cannot buy a rent back property from an FSA regulated company unless they themselves are
regulated. There are no exceptions.

How will FSA regulation affect the average investor?

The situation is ‘black and white'.

 Unless you are authorised and regulated by the FSA from 1stAugust 2009 (and if you have not already
applied you are too late) you cannot buy a SARB property.

Forgive me for repeating this: but there are no exceptions.

 Any company or individual who tries to convince you otherwise and/or tries to sell you a SARB property
is committing a serious offence. If you buy a SARB property youare also committing a serious offence and
you will face prosecution and substantial fines from the FSA.

 At today's date (17th July 2009) only 4 companies have applied to the FSA for authorisation. The cost of
authorisation is c£100K+ with ongoing regulation costs for every SARB purchase.

But remember: these companies can only sell SARB property to SARB authorised investors. In reality
FSA regulated companies will be buying property for their own portfolio - not for selling on to investors.

 Note:FSA rules only apply to rent back properties. They do not apply when a property is being sold with a
sitting tenant who was not the previous owner of a property.

If you require further info on sale and rent back services visit:-
http://www.thechainbreakers.co.uk/sell-rent-back/index.php

###

TheChainBreakers.co.uk
If you require further info on sale and rent back services visit:-
http://www.thechainbreakers.co.uk/sell-rent-back/index.php

Category           Property, Homes, Houses
Tags               sell and rent back, sale and rent back, fast house sale, selling property, sell house
Email              Click to email author
Phone              0800 599 9966
Address            Lee Moor Business Park
                   Rennington
City/Town          Alnwick
State/Province     Northumberland
Zip                NE66 3RL
Country            United Kingdom




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