Commercial Property News
Warnings to Landlords on New Sale and Rent Back Regulations - Joanne McNally
The National Landlords Association (NLA) has marked the beginning of sale and rent back (SRB) regulation by sending out a stark warning to landlords that they have less than four weeks to apply for FSA authorisation to keep operating.
Since the start of July, SRB landlords, whether individuals or companies, were given only one month to submit an application for interim authorisation to continue their SRB business activities.
As a result of the new rules SRB is now categorised as a regulated activity and applicants will have to demonstrate they meet minimum standards and are 'fit and proper' persons.
The regime means that SRB businesses are required to treat customers fairly, making clear important details, such as the length of time they can stay in the property, before they make their final decision on whether to sell.
The main part of the interim regime is the requirement on applicants to provide a sustainable business plan which shows funding streams and evidence that the funding will continue.
The interim regime began on 1 July 2009 and the start date of the full regulatory regime is 30 June 2010.
For more advice in relation to this or any other property matter please call 0151 647 9381 and ask to speak with a member of the Business & Property Services department who will be more than happy to assist.
Joanne McNally
This article provides a summary of a recent case/change in law/news item. It is intended for general information purposes only and is not to be relied upon. It does not constitute legal advice and should not be treated under any circumstances as a substitute for legal advice. Lees Solicitors LLP does not accept any responsibility for any loss that may arise from reliance upon the information contained within this article. The copyright in this article is owned by Lees Solicitors LLP and permission must be sought before reproduction or publishing.
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