Financial Services Authority to Regulate Sale and Rent Back Schemes
The Financial Services Authority has announced that it is to regulate Sale and Rent Back Schemes. The news was welcomed by Tim Loy, Chief Executive of equity release advisors Age Partnership who said, “This is good news for consumers and the equity release market. Unregulated Sale and Rent Back Schemes have often been confused with regulated equity release plans and this should create more of a level playing field. Unlike equity release plans, sale and rent back schemes generally do not offer security of tenure to the client and also require rental payments to be made, whereas with equity release there are normally no monthly payments to make”.
He continued, “Whilst we don’t advise our equity release clients to take out sale and rent back schemes, we welcome the added protection for consumers that regulation will bring”
Contact the experts at Age Partnership for further information on how you could benefit from an equity release plan.
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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