Call for voluntary code
Sell and rent back schemes can be a preferable option for people who face repossession.
[UKPRwire, Tue Mar 04 2008] That is according to the Repossessions Advice Centre (RAC), which said that sell and rent back offers people the chance to avoid paying interest on their debt.
The organisation now wants to see a voluntary code put in place to ensure the smooth running of the sell and rent back sector.
"A voluntary code could make a very positive difference. Where a client is repossessed, their lender is legally obligated to achieve the best possible price on the open market for their property," explained Paul Fletcher from the RAC.
"This best practice should be emulated by companies within the sale and rent back scheme sector.
"If a company is offering to give you a clean slate this is better than still having a debt left with the mortgage lender. People are unaware that the debt on a property continues to rise even after repossession: the interest will continue to be added until the property is sold," he added.
Sell and Rent Back providers National Homebuyers are backing the call for regulation within the Sell and Rent Back industry. Company Director and APBA [Approved Property Buyers Association] founder member Julian King says, "It's important that the consumer is protected from smaller, less scrupulious operators in this sector.