Sell and Rent Back

The Office of Fair Trading has been investigating the sale and rent Back sector. For example, some of the concerns identified are:

• some consumers enter into sale and rent back transactions when it might not the best option for them
• some sale and rent back firms may mislead customers as to the value of their property or the security they have as tenants. This includes telling people they will be able to stay in their home for years, when in reality the tenancy may only be guaranteed for six to 12 months
• there are examples of firms imposing substantial rent increases or even evicting tenants after a short tenancy period. It is also possible that tenants may lose their homes if the landlord defaults on the mortgage, and
• some consumers may be evicted because they cannot afford the agreed rent, which suggests staying in their property may not have been sustainable in the first place.

Click here to read the full OFT review.

Unfortunately a few rogue operators risk tainting a practice that is of immense value to people. Through the National Landlords Association, which is the leading independent national association for private residential landlords, we fully support every effort to clean up the practice of sale and rent back.

The very last thing you should be exposed to is to place your faith in being able to rent back your home, only to see the property repossessed because the landlord did not make the proper checks to ensure the property paid its way.

We approach the issue of you selling and renting back your home, with great care to ensure your financial circumstances allow you to meet the rent obligations and that any rent on the property is sufficient to meet any lender repayments. In order to get this right, we will ask about your financial status and expenditure and take the time to ensure you have the chance to remain in your home. There is an obligation on us and on you to ensure we create the right solution and we admit we have walked away from approaches where the circumstances did not work properly.

Ethics and fairness are our objectives in working with you and creating a long-term relationship while you enjoy your home.