A judge has today issued a landmark ruling in the sale and rent back sector which could have a major impact in the longer term. The sale and rent back market has become more and more popular as the economy continues to struggle with many homeowners, often in arrears with their mortgages, agree to sell their homes at a discount with the opportunity to rent the property for a predetermined period.
This particular hearing saw a company by the name of Repossession Stopped acquiring the property of a couple in Shrewsbury who had lived there for over 25 years. While the couple in question had behaved impeccably and were on time with their payments, the company which acquired their home had failed to keep up with the mortgage payments and the mortgage provider sought to repossess the property.
Housing charity Shelter took the case to court on behalf of the couple involved and the judge ruled that they could either takeout a mortgage themselves and buy the property or else come to an agreement with the mortgage company to rent the property indefinitely. This is a major ruling for the sector and offers significant protection for those forced to take this controversial route.
