Saturday, Dec 20, 2008
Aw diddums
Times: Buy-to-Let fraud hits millions
Detectives are investigating one of Britain’s biggest buy-to-let schemes in which large numbers of investors have seen their savings wiped out.
The Serious Fraud Office (SFO) is investigating alleged scams that have cost banks such as Northern Rock millions of pounds on loans that should never have been made.
At the centre of one of the biggest investigations is Morris Properties. Morris lured investors with promises of substantial discounts on properties that were overvalued, and rental figures that were widely overestimated. Investors, drawn in by the mirage of ever-increasing house prices, were easy prey. With property prices now falling in some areas by as much as 50%, many of those investors are facing ruin.
Posted by little professor @ 10:20 PM (645 views) Add Comment
7 Comments
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1. crashpad4me said...
While I doubt there will be much sympathy on this site for the punters who lost out, schemes like these have played their part in pushing prices out of reach for many people who just wanted a roof over their heads. If these alleged scams are actual scams, let's hope the SFO gets some results and some compensation for the taxpayer, aka Northern Rock.
2. str 2007 said...
No wait, what happened to ' they always go up in the long run'. or was it I'm in it for the long term. Your tellin' me.
3. Dr Ray said...
I suspect the investors will claim the BS valuation was incorrect and seek compensation from the tax payer who now owns most to the BS in question.
4. Housepriccrashishereyes!!!! said...
Tough sh*t! It serves them right for expecting to make a quick buck at other people's expense - other people that is who couldn't afford to buy a roof over their head cos of people like these BTLers pushing up prices beyond your HOME owners reach!!! Let's hope they are now getting their come uppance at last!
5. Housepriccrashishereyes!!!! said...
Why don't you ever post my posts?
6. jackas said...
Why is the Serious Fraud Office involved?
There's a fine line between being ripped off and being a MUG.
I would understand if the Serious Feckwit Office was investing..
7. beartil2010 said...
I would suggest the majority of these firms are bankrupt and have no money left. Although if there are directors with stashed millions, go get 'em!
Ps jackas, deliberate misvaluing is an offence, hence the SFO. Simple comparisons with comparable properties on the open market would demonsrate the illegality. (Of course, if these investors had done those simple checks themselves, this problem wouldn't be there in the first place!)