The story on BestAdvice.net earlier in the week claimed just four firms have managed to gain regulator approval to conduct Sale and Rent Back (SARB) business with RPS becoming the fifth.
The other firms which passed muster include DFB Housing Solutions, Ingard Financial, Momentum Homes. Before the 30 June interim regulation period ended and full regulation began, 50 firms had interim permission to advise customers in the sector.
The FSA’s full regulatory regime gives consumers protection from high-pressure sales techniques and assured short hold tenancy agreements with a minimum term of 5 years.
Pete Thomson, managing director of Residential Property Solutions, said: “We’re delighted to have received our full authorisation, which means we can continue to provide brokers throughout the UK with specialist sale and rent back support.
“Brokers do not need to have any special FSA permissions if all they do is refer a client to an authorised firm such as RPS. Clients will be provided with advice and a recommendation and we’ll also pay brokers a fee of 0.4% of the transaction value for the referral, which compares favourably with the proc fees paid on a typical mortgage case.”
Residential Property Solution said clients receive an assured five-year short hold tenancy agreement and purchase prices worth up to 75% of the value of their property. Tenants can legally buy back their homes at any time during the five year tenancy agreement, receive free legals and no upfront fees.
The Council of Mortgage Lenders (CML) latest forecast states that up to 50,000 homeowners could face repossession this year.
