Tuesday, Feb 19, 2008
Perhaps Sale and Rent back is actually the real price
BBC News: Sale and rent back rip-off claim
Interesting article calling for tighter regulation of sale and rent back schemes.
Shock, horror, in some case people entering such schemes only get paid 50% of what a valuer may say the property is worth.
But given what we all know perhaps that is actually the fair price!
I'd like to know if these StRB figures get included in the land registry? We all saw Panorama and how the land registry figures got fiddled, is this another fiddle to keep the index high?
Posted by mikelivingstone @ 08:36 AM (313 views) Add Comment
5 Comments
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1. paul said...
It's astonishing isn't it?
With everyone up the chain from estate agents colluding with lending arms, solicitors and surveyors colluding to overvalue properties, developers reporting inflated figures to the Land Registry, lenders reporting heavily doctored figures to the media and allowing high-risk borrowers 10 times their salaries, the MPs backhanding themselves second properties at the taxpayers' expense, and the BBC decides that rather than focus on any of these crimes (technically speaking), that after a decade of mortgage fraud on an industrial-political scale with the BBC actively encouraging and turning a blind eye, that now and only now they expose the indecency of people's houses being taken back by reckless lenders.
Talk about selective reporting. This is outright deception.
2. Sold My Soul To The Never Never Never said...
I do not think that the Government would want to regulate these sell & rent back schemes as eventually these properties would probably get repossessed anyway and it wouldn't look good for statistical purposes. Keeping this scam going manages to keep some potential repos off the books!
3. inbreda said...
Paul - your comment sums everything up alarmingly well. It should be billboarded all over teh country.
4. crash bandicoot said...
I'm not sure exactly how much of this is a rip-off and how much is just regular business practice. The only thing that I can see to be worried about is if people have been told that they have a certain length of tennancy and then are evicted with no reason. If they are evicted for not paying their rent then that is a different proposition and quite correct as long as the due legal process is followed. Equally I have some reservations about the "paying 50% of the market value" headline. We all know that your house is only worth what someone will pay you for it. If you need to sell your house you have the option of putting it on the market yourself, or selecting from an increasing number of StRB companies. If you can only get 50% of what you think your house is worth after all this it is probably time to review your expectations. If you are taking the StRB route you are probably a distressed seller which usually suggests a poor credit history. You would expect a buyer to charge a premium to be renting a property back to subprime borrower.
5. Fed Up said...
Sell back and rent is what many NR mortgagees will be doing, only they'll be having the government as the landlord, allowing to them to live in a council house.