MORE CRITCICISM OF SALE AND RENT BACK -AND CALLS FOR REGULATION
Leading organisations are calling for the regulation of ‘sale and rent back’ schemes.
Citizens’ Advice, Shelter and the Council of Mortgage Lenders have written an open letter to the Treasury calling on it to allow the Financial Services Authority to implement regulation in order to provide protection for consumers.
This all follows exposure of the ‘mortgage rescue’ practice on television and in the press.
In one case, a woman sold her home for under market value to a sale and rent back company which then went bust, leaving her homeless and the house unoccupied.
The programme also showed a novice landlord hawking leaflets around a neighbourhood, offering to buy and rent back properties.
Under Sale and rent back schemes firms or individual landlords buy property from ‘distressed’ sellers at a substantial discount, with the former owners remaining in situ - but as tenants.
I know quite a few “good guys” who do this for a living and they always have the Home owner’s interest in mind.
These guys point out the drawbacks – one of which is that the owner turned tenant has no security of tenure beyond six months – and another is the fact that by doing this they may not qualify for housing benefit in the future.
However, I know that lots of below market value operators who are not do kind.
For most people in mortgage arrears the best advice is to speak about their difficulties to the lender, who has a duty of care first.
The Residential Landlords Association adds that it is unfair and unethical to buy a property without an independent valuation.
In another subject, I hosted a great seminar yesterday. We had Paul Grimaldi the author of the top selling book on employing builders called “Getting the Builders In” Paul’s book is the UK’s top selling title on this topic.
You can buy this book from Amazon. Just click on the link to my book here – http://www.amazon.co.uk/gp/product/0716030152?ie=UTF8&tag=lettingfocouk-21&linkCode=as2&camp=1634&creative=6738&creativeASIN=0716030152 which takes you to Amazon and then just search for Paul’s book.
We also had Toyin from www.landlordslawyer.co.uk who gave a great talk about getting rid of problem tenants. Ask her for advice if you have a problem tenant.
All that plus a copy of a recent article I did on Below Market Value for £30.
If you need more advice on sale and rent back or buying property below market value in general, please ask me. I’m David Lawrenson from landlord mentoring firm www.lettingFocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property invesment networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment help because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
Citizens’ Advice, Shelter and the Council of Mortgage Lenders have written an open letter to the Treasury calling on it to allow the Financial Services Authority to implement regulation in order to provide protection for consumers.
This all follows exposure of the ‘mortgage rescue’ practice on television and in the press.
In one case, a woman sold her home for under market value to a sale and rent back company which then went bust, leaving her homeless and the house unoccupied.
The programme also showed a novice landlord hawking leaflets around a neighbourhood, offering to buy and rent back properties.
Under Sale and rent back schemes firms or individual landlords buy property from ‘distressed’ sellers at a substantial discount, with the former owners remaining in situ - but as tenants.
I know quite a few “good guys” who do this for a living and they always have the Home owner’s interest in mind.
These guys point out the drawbacks – one of which is that the owner turned tenant has no security of tenure beyond six months – and another is the fact that by doing this they may not qualify for housing benefit in the future.
However, I know that lots of below market value operators who are not do kind.
For most people in mortgage arrears the best advice is to speak about their difficulties to the lender, who has a duty of care first.
The Residential Landlords Association adds that it is unfair and unethical to buy a property without an independent valuation.
In another subject, I hosted a great seminar yesterday. We had Paul Grimaldi the author of the top selling book on employing builders called “Getting the Builders In” Paul’s book is the UK’s top selling title on this topic.
You can buy this book from Amazon. Just click on the link to my book here – http://www.amazon.co.uk/gp/product/0716030152?ie=UTF8&tag=lettingfocouk-21&linkCode=as2&camp=1634&creative=6738&creativeASIN=0716030152 which takes you to Amazon and then just search for Paul’s book.
We also had Toyin from www.landlordslawyer.co.uk who gave a great talk about getting rid of problem tenants. Ask her for advice if you have a problem tenant.
All that plus a copy of a recent article I did on Below Market Value for £30.
If you need more advice on sale and rent back or buying property below market value in general, please ask me. I’m David Lawrenson from landlord mentoring firm www.lettingFocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property invesment networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment help because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
This entry was posted by lettingfocus, on
Thursday, November 15, 2007.
