Q&As

Where two properties above a commercial unit are being purchased as an investment, and the vendor of the commercial unit wishes to stay on and rent at least one of the properties, do the Financial Conduct Authority regulations apply in relation this sale and rent back scenario?

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Published on LexisPSL on 26/05/2021

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • Where two properties above a commercial unit are being purchased as an investment, and the vendor of the commercial unit wishes to stay on and rent at least one of the properties, do the Financial Conduct Authority regulations apply in relation this sale and rent back scenario?

Where two properties above a commercial unit are being purchased as an investment, and the vendor of the commercial unit wishes to stay on and rent at least one of the properties, do the Financial Conduct Authority regulations apply in relation this sale and rent back scenario?

We refer you to Practice Notes Regulated mortgage contracts and home finance transactions defined and Entering into and administering home finance transactions.

A regulated sale and rent back agreement (SRBA) is defined in Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), SI 2001/544, art 63J and, broadly speaking, is an arrangement under which, at the time it is entered into, a person (the agreement provider) buys all or part of an interest in land (other than time share accommodation) in the UK from a homeowner (being an individual or a trustee whose beneficiary is an individual) (the agreement seller) on the basis that the individual or a related person is entitled under

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