Beware of companies offering to buy your home and rent it back to you, so called “sell and rent back”.
From July 2009, Sell and Rent Back schemes are being regulated and companies offering sell and rent back have to comply with various rules and requirements to ensure sellers are treated fairly and are given all the information before making an informed decision as to whether sell and rent back is the right solution for them.
A number of scams have been reported where sell and rent back companies buy the home and then evict the sellers shortly afterwards - or sometimes raise the rents to extortionate levels. Some offer some of the price for the house now and some in 10 years time, but whether they will ever pay that amount remains to be seen.
There are some good sell and rent back providers out there. We suggest you research the market, get competing quotes and get legal advice. Also check with the sell and rent back company you are dealing with is appropriately authorised and regulated. Sell and rent back can be a useful solution in certain circumstances, but it isn’t the right or only solution for everyone.
WeBuyEssexHouses does not offer a sell and rent back solution, but we can offer to buy your home so you can move on elsewhere.
Futher information and reports on regulation of the sell and rent back industry can be found by clicking here
HM Treasury have now published the order enabling statutory regulation and the interim regime is expected to be in place by 1 July 2009. The FSA have also published the rules for the interim regime.