A judge has told a family they can stay in their home after they faced eviction from a sale-and-rent-back company
Lauren Thompson, TimesOnline.co.uk – 9 July 2009
A family who were about to lose their home to a sale-and-rent-back scheme have won a landmark ruling that will allow them to stay in the property for life.
Paul and Amanda Jackson, who had lived in their property in Shrewsbury since 1984, had entered into a sale-and-rent-back scheme with a company called Repossessions Stopped after getting into mortgage arrears. They were told by the firm that they could remain in the property indefinitely.
But in 2007, just two years after the arrangement was set up, they received an eviction notice after the company failed to keep up with its mortgage payments on the property.
However, a judge at Birmingham County Court ruled last week that the family could stay in the property for life, with them either taking out a new mortgage and becoming the owners, or through renting the property from the mortgage lender who had repossessed it.
Shelter, the charity that took the case to court on behalf of the Jacksons, said it was the first ruling of its kind.
John Gallagher of Shelter said: “This is a huge and important victory for not only the Jackson family but everyone who is tempted by sale-and-rent-back schemes.
If I purchase a property from a vendor and then rent it back to them would I be breaking the law after Aug 1st?
How can I help families who are facing bankrupcy and who will be forced out onto the street with no credit refs if I am not allowed by law to offer to rent back to them?
Comment by Janet — 10/7/2009 #