Residential Property Solutions Ltd. has launched a sale-and-rent-back (SRB) scheme based on a five-year assured shorthold tenancy agreement, ahead of the new FSA regulations which will apply from 30th June.

Their new scheme, which replaces the companies existing SRB products, enables tenants to benefit from the security of a five-year AST, with purchase prices being offered at up to 75% of the property value.

Tenants will also have a legally binding option to purchase their home back during the five year tenancy agreement and they will also benefit from a free legal service with no requirement to pay any up-front fees.

Pete Thomson, managing director of Residential Property Solutions, says that: “The CML’s latest repossession figures confirm that approximately 50,000 homeowners will have their properties repossessed this year. To date, the government mortgage rescue scheme has helped only 628 homeowners and lender forbearance schemes have simply delayed the inevitable.

“If a client is experiencing financial difficulties, our new fully compliant SRB scheme gives them a five year window of opportunity to get their finances back on track, without needing to move home. Surely, that has to be an option well worth exploring?

“The SRB market is about to become fully regulated and it provides homeowners facing repossession with a practical solution to their financial predicament and also enables brokers to generate valuable, additional income.”