Jump to content
House Price Crash Forum
Sign in to follow this  
Saving For a Space Ship

Sale And Rent Back Regulation Comes Into Force Today

Recommended Posts

http://www.ftadviser.com/FTAdviser/Mortgag...-into-force.jsp

This will then be followed by a more comprehensive regime which will start on 30 June 2010.

As a result of today's changes, the National Landlords Association (NLA) was quick to warn companies operating in the sale and rent back (SRB) market they only have four weeks to apply for Financial Services Authority (FSA) permission to keep operating.

John Socha, vice chairman of the NLA, said: "In the current economic climate, more and more people will be facing financial difficulty including keeping up their mortgage repayments.

"Although sale and rent back will not stop repossessions, ethical sale and rent back :lol: could be a way for homeowners to remain in their properties but become tenants.

Edited by Saving For a Space Ship

Share this post


Link to post
Share on other sites

The ethical thing would have been to build a few more Council/Social flats and houses to rent, as opposed to shared ownership over the last decade. :angry:

See my sig.

Share this post


Link to post
Share on other sites

As such, interim measures that require firms to meet minimum FSA standards, including the requirement to have adequate resources and to be run by 'fit and proper' people, came into force today, in order to address the most immediate problems for consumers.

The regime also requires that businesses treat customers fairly, making clear important details, such as the length of time they can stay in the property, before they make their final decision on whether to sell.

This will then be followed by a more comprehensive regime which will start on 30 June 2010.

..........

What happens next year to the regulation?

Fit and proper... so what does that mean?

Share this post


Link to post
Share on other sites

crazy thing about this is it was only really a goer when prices wer eincreasing.

it wasnt about being a landlord, it was about MEWing the fu<k out of the houses.

Case in point - i know a guy who ran a massive scheme of these (>500 houses)

Each were bought for approx 60-70% OMV and then remortgaged (back to back) up to 95%.

This money then fed back into the purchasing with hefty amounts taken as profit.

Only problem is, now that houses arent going up anymore he has stopped paying the mortgages on them and hunderdes of vulnerable people/elderley/ok - feckless to will be thrwon out as the houses are repod.

Unfortunately, the contract they had guaranteeing they could stay in the house means absolutely nothing to the lenders as third party agreements are not allowed and the mortgage would be refused if it was even suggested in the application.

Oh dear.

As for fit and proper sarah, wouldnt have made a differnce - his wife 'ran' it as he had been made bankrupt earlier

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   291 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.