I found the article I was reading;
The main danger with rent-back schemes is that tenants only have security of tenure for a limited period of time due to providers’ use of assured shorthold tenancy agreements.
These tenancy agreements were introduced with the Housing Act 1988, with changes being made in 1996 that become effective on February 28th 1997.
These changes granted landlords the right to regain possession of their properties six months after the start of their tenancies, provided tenants are given two months notice.
Effectively, this means landlords can evict tenants after six months – a pitfall most providers’ advertisements fail to divulge.
Such concerns have prompted CAB to issue a warning urging borrowers in trouble to approach rent-back schemes with caution.
“This is a growing problem and one we would like the government to look at” says a CAB spokeswoman.
Read from the Monthly publication ‘Mortgagestrategy’
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