Sale and Rentback Schemes
Published / Last Updated on 11/06/2008
Sale and Rentback Schemes
The Office of Fair Trading has launched a study into the sale and rentback sector. Sale and rentback involves individual homeowners, who are often in financial difficulty, selling their property at a discount in return for the option to remain in the house as a tenant. Chief executive, John Fingleton says “We are prioritising this work to take a good look at whether consumers are adequately informed and protected”.
Our view
We came across such schemes a couple of years ago and were appalled at the risk. We welcome the announcement and suggest that sale and rentback schemes should be a regulated activity much in the same way as Equity Release is.
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