4b Sell and Rent Back (SARB)

Selling and Renting back your home is another way to release equity.

In 2009 it was regulated by the FSA, meaning that only Providers authorised by the FSA could offer SARB.

Before Regulation

Prior to regulation Sell and Rent back schemes were offered by many companies and individuals, and provided a solution for many people who were unable to pay their mortgage and would otherwise have been forced to sell and rent another property, or have their property repossessed.

Unfortunately, being unregulated, unethical buyers could, if they wished, ask the previous owner (now the tenant) to leave at any time after the initial 6 month tenancy period was complete, or increase the rent to whatever level they wished. For these reasons the FSA decided to regulate the Sell and Rent Back sector.

The current situation

In February 2012 it was “temporarily” closed down due to widespread poor practice, and is still not able to be offered. See http://www.fsa.gov.uk/library/communication/pr/2012/011.shtml.

This means that any agreements offered since February 2012 are invalid. If you are offered such a solution you should refuse it and report this to the FSA.

Although it is clear that there was malpractice both prior and post regulation, thousands of rent back agreements have been supplied by reputable Investors where both the Owner and the Tenant are very satisfied.

Since SARB has been shut down, some companies have looked for other ways to solve problems for householders unable to afford to repay their mortgage. See ‘Creative Solutions’.

Find out more about the ways to sell a house:

1 Using an Estate Agent
 • Types of Estate Agent
 • How Estate Agents Market Property
 • How Much is it Worth?
 • How Much are Estate Agent’s Fees?
 • Once the Property is Listed
 • Once a Sale has been Agreed
 • Estate Agent Tricks
 • Selling Without an Estate Agent

2 Selling to a Quick Cash Buyer
 • Watch out for the Unethical

3 Selling at Auction

4a Equity Release

4b Sell & Rent Back (SARB)

5 Creative Solutions
 • Exchanged with Delayed Completion

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By Richard Watters

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