Seller wants to complete the sale but stay in the house

AdrianC

bpj said:
Can anyone explain what the concern of the FCA is here? Why should this activity be regulated in this way?

Because for a while there were companies offering "equity-release" style schemes, whereby they bought a property off a vulnerable vendor, on the promise to allow them to continue living there.

In many cases, the sale was below market value... And, in many of those cases, the company then gave notice to the tenant at the first possible opportunity...

https://www.theadvisory.co.uk/sell-house-fast/sale-and-rent-back-schemes/

2008 - https://webarchive.nationalarchives.gov.uk/20140402160644/http://oft.gov.uk/OFTwork/markets-work/saleandrent

SDLT_Geek

bpj said:

GDB2222 said:

As @SDLT_Geek said, it is covered by the FCA, and what you are planning is illegal. You are not authorised to make this transaction.

The wording in the link is a little opaque! From my reading it is saying that a sale contingent on a rent back agreement is only allowed if the provider is an "authorised" (or "exempt") person, which presumably the OP is not. Can anyone explain what the concern of the FCA is here? Why should this activity be regulated in this way?

The FCA rules are there in order to protect vulnerable people from businesses buying their homes at a reduced price, promising a tenancy back, but then not honouring the tenancy.  There were a number of businesses exploiting people in this way.  The rules however apply very widely, and cover a tenancy granted back to a seller even where the sale was for full value.

bpj

Makes sense - thanks! Seems obvious now you both say it, but what a shame we live among such scoundrels.