Warning: Sale and Rent back schemes

glennbo

Unfortunately, the concerns that people have relating to this industry are justified. It is unregulated, fragmented, and large parts are run by one man operations.

We represent the largest quick property buying companies in the UK, heavily involved in the sell and rent back sector. Our company ( aquicksale.co.uk )alone acquired 2000 properties last year, and over 3600 todate.

I appeared on the Money Box program in my capacity as Chairman of the Property Buyers Association.

We fully support calls by Shelter, CAB and the CML for FSA regulation and consumer protection should be in place.

We are currently working with the treasury to bring this about but unfortunately this will take 2-4 years.

Until then, PROBAS members provide;

1. Key Facts Information in FSA format
2. Code of Practice
3. Independant Complaints Procedure
4. 6 figure compensation backing
5. Separate legal representation and advice to all client's

Glenn Ackroyd
Chairman
Property Buyers Association
www.probas.org

RepossessionAngels

It's good to see one of the bigger players in the market forming an association of this type and we would fully support the initiative.

adr0ck

article about this on the fool today

http://www.fool.co.uk/news/property-home/mortgages/2008/02/29/mortgage-with-no-monthly-repayments.aspx

ahai1

National Home Buyers are advertising on TV. I thought that they were investigated by Watchdog.

brit1234

So many of these schemes are dodgy. Also you will most likely find in the speed of the falling market that this so called rent back companies are unsustainable.

You are better off going to the citizen advice and speaking to your bank as soon as possible.:exclamati

oldMcDonald

Should this be a 'sticky' post? There seems to be a lot of people coming on the forum asking about these companies and chances are there will be a lot more posts asking in the near future.

geoffky

nathanforrest wrote: »

I see that my comments earlier were removed. I wanted to make some key points to provide advice to people considering Sell and Rent Back. I hope my comments below will be to the satisfaction to the forum, which does not include any advert or reference to our company.

This is not an advert!!!

I purchase properties in the Yorkshire area along with my business partner. We aim for a purchase price of around 75% of the market value and prefer Sell and Rent Backs due to the fact that the existing owners would be more likely to respect the property, that we then don't have to actively seek new tenants, and that it causes minimal disruption to the existing owners. We need to achieve the discount to pay the relevant legal fees and so that there is a pot towards immediate/ongoing repairs. Unlike some other investors we generally fix the rent for a period of two years (if this is what the tenants want), we adjust rents after this period in line with market rates, we have good relationships with our tenants and have agreed payment breaks in the past. We also allow the home owners to contact our existing Sell and Rent Back clients if they so wish.

We keep as much income generated from our investments in the business so that there is always funds available to cope with unpredictable repairs, etc. Some businesses tend to spend all the income and live the high life - this is a major contributory factor in relationship breakdown between the tenant and the business and is a recipe for disaster.

If you are thinking of Sell and Rent Back do your research. Choose a reputable person(s) or business that is successful at what they do. Don't necessarily choose the cheapest deal. Get a few offers, meet with the prospective buyer(s) - this is essential. You can get a good impression of someone face to face. Ask as many questions as you can think of and ask to speak to existing clients of theirs.

Hope this helps!

CAN YOU TELL ME IF YOU ARE REGULATED BY ANYONE ? IE THE GOV OR FSA OR ANY BODY WHO MIGHT HAVE A LOOK AT WHAT YOU DO AND WHETHER UNDERHAND TACTICS ARE USED IN YOUR INDUSTRY....

Trollfever

<H2 class=heading2>Mortgage rescue schemes



One option you may be considering to help you pay off your mortgage arrears is a mortgage rescue scheme, also known as buy-back or sale-and-lease-back schemes.


These schemes are usually run by a private company or individual who will buy your home and rent it back to you. This may look like a good way out of your mortgage problems because it allows you to pay off your debt while being able to stay in your home.


However, you need to be very careful about signing up to a mortgage rescue scheme run by a private company or individual. Not all these schemes are trustworthy and you could end up paying very high rent or even being evicted.


It's important to check any terms and conditions very carefully. Things that you need to know about include:

• privately run schemes often buy homes below the market rate
• you will probably have an initial tenancy which runs for six or twelve months and, during that time, the landlord might charge you what seems to be a reasonable rent. However, after that, if your tenancy is renewed, you may be charged a much higher rent or one which is not that different from what you would have paid if you were still paying off the mortgage and the arrears
• the type of tenancy offered may give you little protection from eviction which means that the landlord might be able to evict you quite easily.

If you are thinking about signing up to a mortgage rescue scheme with a private company or individual, you should get advice from an experienced adviser, for example, at a citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

</H2>
http://www.adviceguide.org.uk/index/life/debt/mortgage_arrears.htm

Trollfever

And:

<H3 class=level7>OFT launches market study into sale and rent back

62/08 14 May 2008
The OFT has launched a market study into the sale and rent back sector.
Sale and rent back (also known as 'sale and lease back') arrangements involve individual homeowners selling their property at a discount in return for the option to remain in the house as a tenant. These arrangements may be taken up by consumers in financial difficulty facing possible repossession of their homes.
Sale and rent back is a relatively new sector which appears to be growing quickly. If the number of consumers potentially facing repossession increases, it is possible that the take-up of sale and rent back arrangements will also increase. Given the current economic climate, the OFT considers this important market study is timely.
The OFT intends to take a detailed look at the characteristics of the sale and rent back product and, bearing in mind the circumstances in which these products are sold, consider whether existing consumer protection legislation is sufficient and effective.
We aim to complete the work in September this year.
John Fingleton, OFT Chief Executive, said:
'Sale and rent back schemes might be helpful for some consumers but there are a number of potential concerns including whether consumers in difficult circumstances are making well informed choices. We are therefore prioritising this work to take a good look at whether consumers are adequately informed and protected.'
The OFT will be contacting key parties directly. Other interested parties can submit written views to:
Sale and rent back study
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London EC4Y 8JX
Email: [EMAIL="saleandrentback&#64;oft.gsi.gov.uk"]saleandrentback@oft.gsi.gov.uk[/EMAIL]

</H3>
http://www.oft.gov.uk/news/press/2008/62-08

clutton_2

AQS is sponsoring a professional body for Sale And Rent Back traders

National Landlords ASsociation is also about to launch an association to provide better security for tenants, whilst protecting Landlords interests

There is no "body" to represent tenants - so if anyone has good/bad/indifferent experiences of rentback to divulge - it is in SARB tenants long term best interests to contact FSa to put the consumers side of this.