Regulated Sale and Rent Back Agreement: What You Need to Know

Regulated Sale and Rent Back (RSRB) is an agreement where a homeowner sells their property to a regulated buyer and then rents it back from them. This can be an attractive option for those who need to access the equity in their home quickly but want to stay in the property.

However, it is important to note that RSRB agreements are regulated by the Financial Conduct Authority (FCA) and are only available through FCA-authorised providers. This is to protect homeowners from unscrupulous buyers who may take advantage of their situation.

Here are some key points to consider if you are thinking about entering into an RSRB agreement:

1. Eligibility: RSRB agreements are only available to homeowners who are over 18 years of age and have legal ownership of their property. Also, the property must have a market value of at least £70,000.

2. Financial advice: Before entering into an RSRB agreement, homeowners must seek financial advice from an FCA-authorised adviser. This is to ensure that they fully understand the implications of the agreement and are aware of any alternative options that may be available.

3. Purchase price: The regulated buyer will purchase the property from the homeowner for a discounted price. This price will be based on the market value of the property and any outstanding debts secured against it.

4. Rent: The homeowner will then rent the property back from the buyer at a market rate. This rent will be reviewed periodically and may increase over time.

5. Length of agreement: RSRB agreements are typically long-term and can last for up to ten years. However, homeowners have the right to terminate the agreement at any time, subject to certain conditions.

6. Repossession: If the homeowner fails to pay the rent or breaches any of the terms of the agreement, the buyer may be entitled to repossess the property. However, there are strict rules in place to protect homeowners from unfair repossessions.

In conclusion, RSRB agreements can be a useful option for homeowners who need to access the equity in their property quickly. However, it is important to seek financial advice from an FCA-authorised adviser before entering into such an agreement and to only deal with regulated buyers to ensure that your interests are protected.