Protection For Distressed Homeowners
Homeowners in distress who have sold their property to a 'sale and rent back' company in the belief that they will be able to live their for the rest of their lives, only be to kicked out a year later, will be pleased to learn that this sector is now to be regulated by the Financial Services Authority writes Stuart Bailey of Thomas Guise Solicitors.
The FSA has created a Scheme which it aims to be introduced on the 1st July. Following a survey it was found that sale and lease back deals had a potential to course serious harm to home owners who are often already in a vulnerable position. The FSA has taken a two stage approach and a more comprehensive regime is to start on the 30th June 2010.
The idea of this regime is to ensure that the firms meet certain conditions including the requirement to have adequate resources and to be run by fit and proper people. They will also have to comply with the principles of good business management and meet a number of systems and controls.
If you are considering entering in to a sale and lease back arrangement please contact Stuart Bailey at Thomas Guise Solicitors for further advice.