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.
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