FSA grants RPS sale and rent back authorisation
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Residential Property Solutions Limited has received full authorisation from the Financial Services Authority for sale and rent back activities.
A full regulatory regime for the sale an rent back sector was introduced by the FSA on June 30 after interim measures were ended.
The FSA gives consumers protection from high-pressure sales and assured shorthold tenancy agreements with a minimum term of five years.
Pete Thomson, managing director of Residential Property Solutions, says: “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 favourable with the proc fees paid on a typical mortgage case.”
Residential Property Solution Ltd has a fully compliant sale and rent back scheme which enables tenants to benefit from the security of a five-year AST, with purchase prices being offered up to 75% of the value of their property.
Tenants can buy back their home at any time during their five-year tenancy agreement with free legal advice and no up-front fees,
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