Sell and Rent Back Blog

Sell and Rent Back schemes offer support for Divorce
Posted on August 31,2010 by Caroline

If you are one of the many couples facing the on-going stress of divorce or separation this can be a very stressful time indeed. Add to this the fact that many relationship breakdowns include having to sell a property in order to reach an amicable financial settlement and it is clear to see why one party would often choose to stay in the property if it were only easier.

Reasons for one party wishing to remain in the home include wanting to ensure that children do not lose out by having to move schools and make new friends all over again. Every parent knows what it means to see that their children remain settled and are able to stay in their routines. Other reasons include staying close to friends and family not to mention the upheaval of having to find new work if necessary.

With the recent advancement of Government approved Sell and Rent Back schemes it is now clear that for many the idea of selling a family house and renting it back as part of a divorce settlement is a very real possibility. No longer does separation automatically mean having to sell your property via an estate agent with both parties having to find new homes.

The rent back schemes that are on offer today come with a number of benefits as a result of being fully regulated by the Financial Services Authority. Of significant benefit is the knowledge of knowing that the initial rental period offered is now guaranteed for a minimum of 5 years under FSA regulation. This means that you cannot be served notice to leave the property during the first 5 years provided your rent has always been paid on time. In the event that a firm was to ask you to leave you now have the ability to report this to the Government watchdog who will investigate this fully and reprimand any company that is not working within the rules laid down.

Depending on the firm you choose to buy and rent back your property to you should be provided with the legal option to buy back your home at any point during the guaranteed rental period. This is an ideal solution if you would like to have the flexibility of taking control of your own home once again.

If you are facing the threat of house repossession at the same time Sale and Rent Back could be just the answer. It is never too late to look at ways to save your home. You should also consider taking advice from a number of other sources including the Citizens Advice Bureau or National Debtline. These services provide credible and impartial advice and may be able to help you keep hold of your home despite going through divorce or separation.

Before deciding on Sell to Rent as a way forward think carefully about all of your options. By taking the time to research the possibilities you will be best placed to make a sensible decision.

What have been your experiences in looking at ways of remaining in your home after divorce or separation? Have you found a solution? Let us know your thoughts by posting a comment in the box below.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.
Property rent back schemes offer lifeline for thousands
Posted on August 30,2010 by Caroline

As many thousands of households continue to struggle with mortgage payments, property rent back schemes now offer a genuine lifeline to stop home repossession.

Whilst we have seen one of the lowest interest rate climates for decades there is now clear evidence that things are about to change. The new coalition Government has announced major spending cuts and all at the same time as there is also rising concern over what is happening with inflation levels. For anyone holding a variable rate mortgage and struggling to meet monthly repayments this could spell disaster. Spending cuts will lead to increasing uncertainty over jobs and we can expect to see rising levels of unemployment.

So what does all this mean?

If you are facing the threat of having your house repossessed then you will no doubt be trying hard to find a way to avoid losing the roof over your head. But do not panic. There are a good number of avenues you could explore. One very sound route would be to consider a Sell and Rent Back scheme. These work by enabling you to effectively sell your house and rent it back at an affordable market rate with a minimum guaranteed rental period of 5 years. This new rule was recently set by the Financial Services Authority (FSA) in order to protect homeowners from the unscrupulous rent back firms that were around previously.

Rent back schemes work well if you need to sell your house fast and also want to raise cash from the sale. Provided you have sufficient equity in your property you could in theory sell your property very quickly and remain as a tenant paying rent. Most of the Sale and Rent Back plans offered today now come with a legal option that enables you to buy back your house at some point in the future as long as this is exercised during the guaranteed rental period and as long as all rental payment have been made on time. Again, this is a sensible solution if you are looking for a firm that will buy your house and rent it back to you on the understanding that you want to buy it back once you are up on your feet.

Over the coming year we will see interest rates grow. If you are one of the many thousands of households that are currently benefiting from low interest rates that make your mortgage payments easily affordable, now could be the time to put some of the savings away for a rainy day. By doing so you will help to insulate yourself from the inevitable rises expected.

What have been your experiences in looking at house rent back schemes? Have you found a way to stop repossession? Let us know your thoughts by posting a comment in the box below.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.
Home Sales Adviser vacancy – Sell and Rent Back Today
Posted on August 29,2010 by admin

Sell and Rent Back Today have an exciting opportunity for an experienced Sales Adviser with a proven track record in building strong relationships.

The role will involve liaising with homeowners that are specifically looking to sell their house and rent back for a wide variety of reasons. These include the need to release equity, stop repossession or avoid eviction.

A background in financial services would be highly beneficial. A strong will to learn in a fast moving and high growth business is a must.

Our company is founded on providing ethical solutions as we strive to offer the very best service in our sector. We offer to buy and rent back houses from people with an immediate and pressing need. To succeed in this role you will need to be able to work on your own initiative and also adapt to the needs of the business at short notice. This could involve providing support in a variety of functions as you seek to develop your career with us.

To find out about our Home Sales Adviser role please contact Tracey Slater, Administration Manager in the first instance on Freephone 0800 612 9656.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.
Homes Repossession numbers to Fall under Sell and Rent Back
Posted on August 29,2010 by Richard

If you are one of the many thousands of households currently struggling to meet your monthly mortgage payments there is good news ahead. Homes repossession rates are now falling steadily under the newly approved Government Sell and Rent Back schemes.

In recent years there has been some suspicion that mortgage rescue schemes such as Sale and Rent Back did little to help homeowners. In fact it was widely believed that all firms operating in this market were highly unethical and were only interested in preying on vulnerable borrowers who had fallen behind with their mortgage or other loans secured against their house. Some of this criticism was found to be wholly valid as we discovered from the Financial Services Authority (FSA) having carried out detailed research into those companies offering to buy and rent back houses were indeed using practices to buy property at a strong discount to the true market value and then simply forcing the new tenant to fall behind with their rent by forcing these up to unaffordable levels shortly after the sale had completed.

However, from 30 June 2010 all firms now offering rent back plans must meet a long list of guidelines when entering into these agreements with private homeowners. As a result of all firms now having to become fully regulated by the FSA, Sell to Rent Back schemes are finally a viable solution if you trying hard to stop repossession or eviction. No longer are there the risks that were previously associated with Sale and Rent Back products.

The main concern going forwards is interest rates and the effect these will have on home repossession numbers. One thing is for sure. Over the coming few years we can all expect the UK base rate to grow substantially. For the last 18 months the UK has witnessed a record period of low rates with the current Bank of England rate being held at just 0.5%. As we go into 2011 it is widely expected that rates will start to rise and the popular opinion is that we will see this rise to around 2% by the end of the year.

With growing interest rates comes great uncertainty. Many households have for some time now seen a big difference in their disposable income. The problem is that when rates start to rise it is often difficult to undo previous spending habits and particularly if you have got used to spending at this rate. Those that have been benefiting from the huge savings on their mortgage payments will undoutably find the immediate increases in payments quite a shock to monthly outgoings.

If you find yourself struggling with money worries take early action by talking your difficulties through with your lender first.

What have been your experiences in trying to stop home repossession? Have you been considering selling your house to rent it back? Let us know your thoughts by posting a comment in the box below.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.
So how do Sell and Rent Back schemes work?
Posted on August 26,2010 by Caroline

If you find yourself needing to sell your house fast as a result of falling behind with mortgage or other loan payments then a Sell and Rent Back scheme may just be the answer. For some time now these schemes have offered a real lifeline for homeowners that are struggling to keep up with monthly bills.

These schemes work by allowing you to sell your house and then rent it back and are a good way of avoiding the embarrassment of finally having your property repossessed or being evicted from your home. By selling and renting back your property you could avoid having to alert your neighbours, friends or family members to the fact that you are experiencing financial difficulties. With all firms now having to be approved by the Financial Services Authority (FSA) this is now a safe option to avoid losing your home. After all, if you could sell your house and stay in it this could be a great alternative when compared to selling your house via an estate agent and having to move out.

To find firms that will buy and rent back your house you will need to carry out some research online. The good news is that today there are just a handful of companies that are genuinely authorised and regulated by the FSA to provide advice on sell to rent schemes. This makes things considerably easier. No longer will you need to worry about who you are dealing with. By making a number of simple checks such as asking for a firms FSA number you can be confident that you will not be at any risk of dealing with a rogue company.

To sell your house and remain as a tenant all firms will now insist that your are able to afford the monthly rental payments on completion. It is important that you are able to start making payments promptly after selling your house and renting it back. If you were to fall behind with your rent you could face being evicted from your home despite that fact that you will have been provided with a minimum 5 year guaranteed rental period.

Rent back products come with good and bad points. Whilst any firm will do their level best to help you, remember that any offer to buy and rent back your property will be made on the basis that the price paid will be at a discount to the full value of your home.

Sale and Rent Back schemes are now seen as a real alternative to stop repossession. By taking action today you could avoid losing your home.

What have been your experiences in trying to stop repossession? Let us know your thoughts by posting a comment in the box below.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.
Sell and Rent Back paves way to stop home repossession
Posted on August 20,2010 by admin

The worsening UK economy has led to many households struggling to keep up with the rising costs of living. Whilst we can often find ways to cut back on costs such as food, travel and energy there are often larger bills that we can do little or nothing about. For anyone with a worsening financial situation resulting in falling behind with mortgage payments and the need to stop home repossession or indeed eviction this can become very serious indeed. Faced with this problem it is easy to see why Government approved schemes that allow you to Sell and Rent Back your house have quickly become so popular.

As a direct result of the Financial Services Authority (FSA) now regulating the Sale and Rent Back market there has been a growing trend in the numbers of people making applications to sell their house and rent it back. Perhaps this should come as no surprise. After all the firms now offering rent back products do so with a clear set of guidelines that have been laid down by the FSA so that homeowners can no longer be subjected to the risky deals of the past. Under regulation there are now clear routes homeowners can go down in the event that things start to go wrong.

With only 11 companies now providing approved Sell and Rent Back deals it is far easier to look at all of the firms and to find out what is on offer. Take the time to look at any options where it is possible to buy back your property in the future. This can be a great way of gaining control of your home once again as you get back on your feet in the months or years ahead. You will be under no obligation to buy your home back but it is certainly worth having this as a legal option that you can exercise at any point during your guaranteed rental period.

If you are currently facing property repossession you should think very carefully over who you choose to deal with. A number of firms on the internet offer to help but are nothing more than websites that gather your personal information only to pass this on to a third party and charge a fee for doing so. Ultimately this will come out of the price paid for your property. It will always prove best to deal with the firms that directly offer sound and approved advice. To carry out a simple check on the best firms to deal with always look out for their FSA registration number detailed at the foot of their web pages. This will be a clear sign that the company is indeed Government approved.

What have been your experiences in trying to stop home repossession? Have you found a Sale and Rent Back firm that has helped? Let us know your thoughts by posting a comment in the box below.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.
Sale and Rent Back schemes forced to clean up their act
Posted on August 20,2010 by admin

In recent years there has been a lot of bad press around property rent back schemes and the firms behind them. The main criticism stemmed from the fact that previously vulnerable homeowners were often being targeted by rogue firms looking to take advantage of them. In the main this involved the company offering to buy a house at a discounted rate and then rent it back only to renege on the deal shortly afterwards.

There were stories where rents were hiked up very shortly after the tenancy had started in an effort to ensure that the vendor could no longer afford it and would ultimately default on payments. This would then lead to legal notice being served to vacate the property very shortly afterwards. For the firm this meant that the property could then be sold on for a fast profit.

We also heard of cases where home owners had been subjected to receiving poor advice on whether selling and renting back was indeed in their best interests given their current situation at a time when it may have made more sense to try and hold on to their home by simply talking with their existing mortgage lender and finding a way forward by either restructuring mortgage payments or switching products.

Sale and Rent Back regulation
Fast forward to June 2010 and everything has changed. The Government watchdog, the Financial Services Authority (FSA) had since 2008 been gathering information on the effects Sale and Rent Back schemes were having on households faced with the need to stop home repossession. It quickly became clear that a large number of sell to rent companies were not really trying to help homeowners at all but were instead only interested in serving their own purposes. A good number of firms had become very greedy indeed and saw their rent back service as a means to making a fast profit regardless of the wider effects on the household. As a result of discovering these problems, the FSA introduced Full Regulation of Sale and Rent Back in order to provide a much greater level of protection for anyone looking to sell and rent back their house. Along with regulation came a long list of new rules that all firms must comply with when buying and renting back property. Any company found to be breaking the rules now faces stiff penalties. Importantly, from 30 June 2010, no longer can anybody simply offer to buy and rent back your house to you without having first obtained the written approval of the FSA to do so.

Unfortunately as with all markets there will always be a number of firms that continue to try and find ways of shortcutting rules as a result of failing to obtain Government approval. To avoid being at the mercy of such firms we would always recommend that you ask any company you are considering dealing with to confirm their unique FSA registration number. Once you have this you can then make a simple check that the company is indeed an approved firm by entering this number into the FSA register online.

What have been your experiences of dealing with Sale and Rent Back firms? Do you think Government regulation is a good thing? Will it lead to a more robust method of selling and renting back your property? Let us know your thoughts by posting a comment in the box below.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.
FSA rules to close many Sale and Rent Back firms
Posted on August 15,2010 by admin

As widely expected, the Financial Services Authority (FSA) has now launched a long list of rules by which all Sell and Rent Back firms must now abide. This has caused many companies that were previously offering to buy your house and rent it back to close as they failed to obtain approval.

For some time the Government had been receiving reports from distressed homeowners that had been taken advantage of through unscrupulous firms offering to buy houses fast and rent them back. In principle a rent back deal looks like a good idea if you are looking to either release equity in your house or are in the process of having your property repossessed. However, often these deals were previously seen by the companies running them as a quick way to make a substantial profit. The biggest problem of all was that a good number of firms were using unethical practices to force households to fall behind on their rent. This meant that the Sell and Rent Back firm could then sell the house on the open market far quicker in order to realise the discount they had obtained at the point of buying the property.

But all this has now changed. The new rules laid down by the FSA stipulate that any company buying a rent back property must first obtain Full Authorisation from the Government in order to continue operating in the market. Once approval has been reached the first rule that must be followed to is to provide all homeowners with a minimum guaranteed five year rental period. This is to ensure the seller of the property can relax in the knowledge that they have a secure tenancy and cannot be forced to leave the property during this period provided that the monthly rent has been paid. This has to be a good thing if you are looking to sell your property and stay in it as a tenant for the medium term.

What is for certain is that the new rules have had a big impact on previous rogue companies. With the FSA now closely monitoring the market we can now expect to see major improvements in the products offered. What was previously seen as a risky way to sell your house fast in order to release equity or stop repossession will surely become a safe and trusted alternative.

What have been your experiences of dealing with Sale and Rent Back firms? Do you think Full FSA regulation is a good thing? Let us know your thoughts by posting a comment in the box below.

Sell and Rent Back Today is authorised and regulated by the Financial Services Authority to advise and arrange Sale and Rent Back business under FSA number 525465.