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Sale and rent back [electronic resource]

By: Language: English Series: OFT ; 1018Publication details: London Office of Fair Trading 2008Subject(s): Online resources:
Partial contents:
Executive summary -- Introduction -- Part I Diagnosis -- The sale and rent back sector in the UK -- Is sale and rent back sustainable? -- Analysis of detriment -- Conclusions from Part 1: nature and scale of the problem -- Part 2: Solutions -- Introduction -- Scope for further action within existing frameworks -- Self-regulation of sale and rent back -- Other initiatives -- Recommendations
Annexes -- Annexe A - Consumer survey -- Annexe B - Equity release -- Annexe C - Analysis of cases recorded by advisors - Annexe D - Website survey -- Annexe E - Financial assistance for homeowners and tenants -- Annexe F - Existing consumer protection -- Annexe G - Alternatives to sale and rent back -- Annexe H - Social mortgage rescue -- Annexe I - Impact assessment -- Annexe J - Consumer awareness -- Annexe K - Similar practices to sale and rent back in the USA -- Annexe L - Case studies of consumer detriment
Summary: Analyses the sale and rent back (SRB) procedure, a property transaction whereby a company buys a house from a landlord and allows the individual to remain in it. This often concerns persons in risk of repossession. Reports that the Office of Fair Trading (OFT) launched this market study in May 2008 to examine issues raised by this type of transaction. Finds that some homeowners were mislead in thinking they had a secure tenure for a long term, while it was not the case. Some were deceived on the value of their property. Some others faced increased rents. Others were evicted after a short tenancy period. Presents the OFT recommendations: statutory regulation on SRB transactions by the Financial Services Authority; more transparency from firms on the initial valuation and sale price, the length of tenancy, and the rent payable. Suggests that SRB firms should inform consumers about available free and independent advice sources. They should provide tenants with written agreement specifying the impossibility to evict a tenant for a set time period. Mentions the need to introduce a minimum length of tenure. Concludes that action should be taken against SRB firms breaching the Consumer Protection from Unfair Trading Regulations 2008.
Holdings
Item type Current library Call number Copy number Status Barcode
Book Virtual Online ONLINE PUBLICATION (Browse shelf(Opens below)) 1 Available 145495-1001

Executive summary -- Introduction -- Part I Diagnosis -- The sale and rent back sector in the UK -- Is sale and rent back sustainable? -- Analysis of detriment -- Conclusions from Part 1: nature and scale of the problem -- Part 2: Solutions -- Introduction -- Scope for further action within existing frameworks -- Self-regulation of sale and rent back -- Other initiatives -- Recommendations

Annexes -- Annexe A - Consumer survey -- Annexe B - Equity release -- Annexe C - Analysis of cases recorded by advisors - Annexe D - Website survey -- Annexe E - Financial assistance for homeowners and tenants -- Annexe F - Existing consumer protection -- Annexe G - Alternatives to sale and rent back -- Annexe H - Social mortgage rescue -- Annexe I - Impact assessment -- Annexe J - Consumer awareness -- Annexe K - Similar practices to sale and rent back in the USA -- Annexe L - Case studies of consumer detriment

Analyses the sale and rent back (SRB) procedure, a property transaction whereby a company buys a house from a landlord and allows the individual to remain in it. This often concerns persons in risk of repossession. Reports that the Office of Fair Trading (OFT) launched this market study in May 2008 to examine issues raised by this type of transaction. Finds that some homeowners were mislead in thinking they had a secure tenure for a long term, while it was not the case. Some were deceived on the value of their property. Some others faced increased rents. Others were evicted after a short tenancy period. Presents the OFT recommendations: statutory regulation on SRB transactions by the Financial Services Authority; more transparency from firms on the initial valuation and sale price, the length of tenancy, and the rent payable. Suggests that SRB firms should inform consumers about available free and independent advice sources. They should provide tenants with written agreement specifying the impossibility to evict a tenant for a set time period. Mentions the need to introduce a minimum length of tenure. Concludes that action should be taken against SRB firms breaching the Consumer Protection from Unfair Trading Regulations 2008.

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