The FSA introduced a full regulatory regime for the sale and rent back market on 30th June 2010 to protect consumers from high-pressure sales and make assured shorthold tenancy agreements with a minimum term of five years mandatory.
Pete Thomson, managing director of Residential Property Solutions, said: “We’re delighted to have received our full authorisation, which means we can continue to provide brokers throughout the UK with specialist sale and rent back support.
“Brokers do not need to have any special FSA permissions if all they do is refer a client to an authorised firm such as RPS. Clients will be provided with advice and a recommendation and we’ll also pay brokers a fee of 0.4% of the transaction value for the referral, which compares favourably with the proc fees paid on a typical mortgage case.”
Residential Property Solutions has a fully compliant sale and rent back scheme which enables tenants to benefit from the security of a five year AST, with purchase prices being offered up to 75% of the value of their property.
Tenants have a legally binding option to buy back their home at any time during their five year tenancy agreement and also benefit from a free legal service and no requirement to pay up-front fees.
The Council of Mortgage Lenders latest forecast states that up to 50,000 homeowners could face repossession this year.