(PRWEB) October 25, 2007
A Quick Sale has today launched an unprecedented guarantee offering long-term security for homeowners selling and renting back their homes, as the leading property purchasing company continues to strive to see bad practice in the industry stamped out.
The sell and rent back sector is currently experiencing rapid growth with an increasing number of organisations entering into the market. To give customers greater peace of mind that they will be able to stay in their home long-term should they wish to, A Quick Sale has launched its unique long-term Tenancy Guarantee Agreement - the first and only one of its kind available.
The Tenancy Guarantee Agreement1 is a legally binding document stating A Quick Sale will renew homeowners-turned-tenants' Assured Shorthold Tenancy Agreements on a rolling basis for a pre-agreed period of time (e.g. five years). In addition, the agreement guarantees that the rent will not be increased above the initial rental amount to a sum in excess of market rent rates. To underpin A Quick Sale's commitment to the agreement, the company pledge to pay substantial compensation if, for whatever reason, the terms are not honoured.
Sell and rent back is becoming an increasingly popular choice for people who are looking to stay in their own home, but need to free up equity tied up in the property or who are facing financial difficulties and are struggling to keep up with mortgage repayments. However, homeowners who sell their home and become tenants often face uncertainty over how long their new landlord is going to allow them to remain in the house. This is because Assured Shorthold Tenancy Agreements are generally restricted to terms of six or 12 months at a time.
The introduction of the new long term Tenancy Guarantee Agreement is part of A Quick Sale's on-going drive to protect consumers within the industry and give greater security to those looking to sell and rent back their home.
Richard Watters, Managing Director of A Quick Sale, said: "At A Quick Sale we would only ever complete a sell and rent back sale if we had every intention of letting the person or family remain in the property as tenants for as long as they wished. However, we are not legally able to offer more than 12-month contracts at a time. This can leave some customers with concerns that they may then have their house sold on by their landlord and face the prospect of having to move.
"What we can now offer customers is a pledge that we will continue to renew that tenancy agreement each year for a set period agreed at the time of the sale. To demonstrate our commitment to the agreement, we provide a warranty that guarantees that should, for whatever reason, we be unable to honour our pledge, the customer will receive substantial compensation to the value of £5,000 or 5% of the price paid for the property, whichever is greater."
The introduction of the long-term Tenancy Guarantee Agreement is part of A Quick Sale's drive for greater transparency and security for consumers following the launch of their Customer Charter1 in April, and their on-going drive to establish a trade association with a view to the industry eventually becoming regulated.
Richard Watters continued: "There has been widespread concern from consumer protection agencies about the nature of the sell and rent back industry and, unfortunately, there are organisations within our sector that are less than scrupulous in their standards of practice. As a company that operates to very high ethical and service standards, we at A Quick Sale are calling for regulation in the industry in a similar way that financial institutions are regulated to give greater protection to the consumer.
"This is unfortunately a very lengthy process, which is why in the meantime, we have established our own Customer Charter detailing our pledge to customers. We are also the driving force behind establishing a trade association, which will involve organisations within the industry signing up to strict Codes of Practice in order to better protect consumers from the unscrupulous practice of a small number of companies."
Transparency for customers
A Quick Sale make it very clear to all potential customers at the start of the process what is involved with selling and renting back their home. All prospective clients are advised that the price paid will be below the open market value for their property. Typically the offer from A Quick Sale will be equivalent to 85-90% of the net proceeds that a customer would ordinarily be expected to achieve from a conventional sale. In choosing A Quick Sale, the vendor will be assured of a quick, hassle free sale that often does not happen when trying to sell on the open market.
A Quick Sale will always recommend customers explore all other options for selling their property first and will often help them to do this. Only if the customer decides it is genuinely the right option for them will A Quick Sale proceed with the sale.
To educate and inform homeowners about what they can expect from selling and renting back their home, A Quick Sale has also produced a free 8-page Guide to Sell and Rent Back offering straightforward advice and information. A copy of the guide is available by calling 0800 328 8239 or at http://www.a-quick-sale.co.uk
Notes to Editors:
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1 Tenancy Guarantee Agreement
Due to guidelines set out by mortgage lenders, landlords who have a mortgage on the tenanted property can only offer Assured Shorthold Tenancy Agreements of a maximum of 12 months at a time. However, A Quick Sale is now able to offer a Tenancy Guarantee Agreement at the time of negotiating the sale. This legally binding guarantee stipulates that A Quick Sale will continue to renew the Assured Shorthold Tenancy Agreement every 12 months for a pre-agreed period (for example: 5 years) provided the tenant has complied with the terms of their tenancy.
Should A Quick Sale then for any unforeseen reason be unable to renew the Assured Shorthold Tenancy Agreement during this period, they will pay the tenant £5,000 or 5% of the price paid for the property, whichever is greater.
2 The A Quick Sale Customer Charter promises:
- A free assessment of the customer's property value
- A guaranteed offer on the property
- A full explanation of how the offer has been calculated
- To pay all legal fees for the sale of a property
- Never to charge customers for any part of the A Quick Sale Service
- To complete the purchase of a property within one month. If this is not achieved the customer will be paid £250 for each week the house sale is delayed. (Subject to the customer using one of A Quick Sale's panel solicitors and the delay not being due to unforeseen structural or legal issues beyond the company's control.)
Terms and conditions apply. A copy is available on request.
A Quick Sale
A Quick Sale is a property investment company launched in October 2003, which offers an open and honest solution to people needing to sell their houses quickly. Having successfully franchised since 2004, A Quick Sale is now the UK's leading property buyer. With offices throughout England, Scotland, Wales and Northern Ireland, A Quick Sales offers tailor-made solutions to buy houses and business premises direct from the vendor offering a 'trade offer' for a person's home or business premises, which usually equates to between 85% and 90% of the net figure achievable through an open market (estate agent) sale, after accounting for the costs of selling by that method.
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