Sale & Rent Back

21/8/09 - Lets start this week with some statistics: Mortgage lending is at its lowest level since March 2001 (source British Bankers Association). By the end of 2009, 360,000 mortgages are expected to be in arrears and 65,000 homes will have been repossessed (source: Council of Mortgage Lenders). Unemployment will top 3 million before this recession comes to an end (source: British Chambers of Commerce). The Government’s Mortgage Rescue Scheme, designed to help 6,000 families avoid repossession, has so far helped just 6 (source: HM Government).
So what does this all mean? Simply that there are large numbers of mortgage borrowers who may struggle to keep their heads above water, financially, during the year ahead. However, not all news is bad news and, even for those who find themselves in deep trouble, there are some options which might help them keep a roof over their heads. Out of the gloom are some positive facts which might help them relieve their position:
The UK's first ethical sale and rent back scheme was launched in May this year and which, subject to criteria , gives homeowners the ability to avoid repossession and keep a roof over their heads. The RPS Home Rescue & Buyback plan offers tenancy agreements for up to 5 years, the option for tenants to buy back property and share in any increase in market value and the added benefit of having no application or administration fees to pay. The prospective clients are not pressured into making a decision. Indeed, they are encouraged to take independent advice and are given £500 towards any legal costs this may incur. Whilst, historically, Sale and Rent Back schemes have had bad press, RPS have gone the extra mile and encouraged the Financial Services Authority to regulate their product giving potential clients additional comfort value. Contact AToM if you would like more detail on this offering.