longwait Posted January 15, 2011 Share Posted January 15, 2011 Chatting the other day to someone with inside knowledge of a property development on the South Coast that went tit's up. Basically developer of a large build went bust. The bank sunk the property company and brought the properties back at a high price. Weird I know. The bank now has over 70 properties on it's hands that haven't sold in 18 months, the bank will not even consider offers on dropping the price even though they are 25% overvalued to what similar properties are going for in the same development (private owned). If you multiply this situation across the country, I think we have serious market and supply manipulation going on. The question is, how long can the banks hold out, as surely mark-to-market rules will mean they have to off-load a lotta properties quickly if prices dip. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted January 15, 2011 Share Posted January 15, 2011 (edited) Chatting the other day to someone with inside knowledge of a property development on the South Coast that went tit's up. Basically developer of a large build went bust. The bank sunk the property company and brought the properties back at a high price. Weird I know. The bank now has over 70 properties on it's hands that haven't sold in 18 months, the bank will not even consider offers on dropping the price even though they are 25% overvalued to what similar properties are going for in the same development (private owned). If you multiply this situation across the country, I think we have serious market and supply manipulation going on. The question is, how long can the banks hold out, as surely mark-to-market rules will mean they have to off-load a lotta properties quickly if prices dip. Its a bit like the Wilson not dumping their BTL portfolio in one go. Heavens forbid the whole lot should be marked to market all in one go. Edited January 15, 2011 by Mikhail Liebenstein Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted January 15, 2011 Share Posted January 15, 2011 Chatting the other day to someone with inside knowledge of a property development on the South Coast that went tit's up. Basically developer of a large build went bust. The bank sunk the property company and brought the properties back at a high price. Weird I know. The bank now has over 70 properties on it's hands that haven't sold in 18 months, the bank will not even consider offers on dropping the price even though they are 25% overvalued to what similar properties are going for in the same development (private owned). If you multiply this situation across the country, I think we have serious market and supply manipulation going on. The question is, how long can the banks hold out, as surely mark-to-market rules will mean they have to off-load a lotta properties quickly if prices dip. Another pent-up supply. Quote Link to comment Share on other sites More sharing options...
Landagan Posted January 15, 2011 Share Posted January 15, 2011 (edited) In Spain, a relation of ours, has just closed down his estate agency business. His reason was; He would find a buyer for a property on his books, then the buyer would go to the bank for a mortgage. The banks are then saying, 'We won't give you a mortgage on that, but if you buy this repossession (from us), which is very similar etc.etc., we'll lend you the money to do it. He just can't operate. Edited January 15, 2011 by Landagan Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted January 15, 2011 Share Posted January 15, 2011 In Spain, a relation of ours, has just closed down his estate agency business. His reason was; He would find a buyer for a property on his books, then the buyer would go to the bank for a mortgage. The banks are then saying, 'We won't give you a mortgage on that, but if you buy this repossession (from us), which is very similar etc.etc., we'll lend you the money to do it. He just can't operate. That should be illegal and criminal. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted January 15, 2011 Share Posted January 15, 2011 That should be illegal and criminal. Applies to the situation described in the OP here. If TPTB won't act, shouldn't it be possible for some activist/group to bring a test case privately in the courts? Maybe on a ballpark of anything that's been unoccupied for six months or more while in the ownership of a bank or its off-balance-sheet associates? Quote Link to comment Share on other sites More sharing options...
erranta Posted January 15, 2011 Share Posted January 15, 2011 Chatting the other day to someone with inside knowledge of a property development on the South Coast that went tit's up. Basically developer of a large build went bust. The bank sunk the property company and brought the properties back at a high price. Weird I know. The bank now has over 70 properties on it's hands that haven't sold in 18 months, the bank will not even consider offers on dropping the price even though they are 25% overvalued to what similar properties are going for in the same development (private owned). If you multiply this situation across the country, I think we have serious market and supply manipulation going on. The question is, how long can the banks hold out, as surely mark-to-market rules will mean they have to off-load a lotta properties quickly if prices dip. Amongst us we sussed the banks out! They have covert shell companies that buy up these type of places and have been doing this for at least 3 years. Put that together with them covertly owning vast swathes of estate agent chains (+ with in_house 'finance advisor' in place working for another 'front' company covertly owned by them too.) Having researched it the banks put all this together in the 90's ready for the manipulation by silently buying up various aligned housing services. They All did it! I bet this went on Globally too! It's just too much of a coincidence with their 'lax' lending practices kicking in at exactly the same time in countries around the World. Massive Market Manipulation going on! Big Business at it's worst! Holding us all to ransom (pay top price) for the basic human need of a bit of shelter. (It's part of their witty occult greenery - 'Lincoln Green' in <reverse<) Quote Link to comment Share on other sites More sharing options...
longwait Posted January 16, 2011 Author Share Posted January 16, 2011 (edited) They are going to surely have to sell these properties one day. I worked out that it will be costing them quite abit per year in terms of servicing the development and council tax, but not nearly as much in the short term of taking the hit on their books. Quite sad, it's got like this, as in the long run this approach will cost them more. But then again 'masters of the universe' springs to mind Edited January 16, 2011 by longwait Quote Link to comment Share on other sites More sharing options...
ZeroSumGame Posted January 16, 2011 Share Posted January 16, 2011 Chatting the other day to someone with inside knowledge of a property development on the South Coast that went tit's up. Basically developer of a large build went bust. The bank sunk the property company and brought the properties back at a high price. Weird I know. The bank now has over 70 properties on it's hands that haven't sold in 18 months, the bank will not even consider offers on dropping the price even though they are 25% overvalued to what similar properties are going for in the same development (private owned). If you multiply this situation across the country, I think we have serious market and supply manipulation going on. The question is, how long can the banks hold out, as surely mark-to-market rules will mean they have to off-load a lotta properties quickly if prices dip. Now if someone were to inform the council about private properties lying empty..............and the council obtained an EDMO..................................... http://www.communities.gov.uk/publications/housing/emptydwellingmanagement Then the council may just have to take these 'empty' marked-to-false-market properties into its care. Quote Link to comment Share on other sites More sharing options...
longwait Posted January 17, 2011 Author Share Posted January 17, 2011 Yes, I looked in to that. Doesn't always work. Councils like to see themselves as deleloper friendly. If they come down heavy on developers who hit hard times then they struggle to get investment in the future. Play Ya Cards Right! Quote Link to comment Share on other sites More sharing options...
Vagabond Posted January 17, 2011 Share Posted January 17, 2011 But these are no longer owned by the devolper according to th OP, they're owned soley by the banks. Win-Win. Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted January 17, 2011 Share Posted January 17, 2011 Now if someone were to inform the council about private properties lying empty..............and the council obtained an EDMO..................................... http://www.communities.gov.uk/publications/housing/emptydwellingmanagement Then the council may just have to take these 'empty' marked-to-false-market properties into its care. Which will be why Pickles is increasing the amount of time a property has to be empty from six months to two years. http://www.communities.gov.uk/news/corporate/1812629 It actually says so in the statement. One of the Dept. of Communities' objections is to " homes already on the property market [being] siezed if councils believe the asking price is "unrealistic". Can't have the nasty old councils doing anything to harm the banks. Quote Link to comment Share on other sites More sharing options...
evictee Posted January 17, 2011 Share Posted January 17, 2011 They are going to surely have to sell these properties one day. They'll probably just sell them job lot to a housing association who won't be too bothered how much of other people's money they overpay. Quote Link to comment Share on other sites More sharing options...
Milton Posted January 17, 2011 Share Posted January 17, 2011 Whats to stop the banks setting up shell companies, and becoming the countries largest landlords? Quote Link to comment Share on other sites More sharing options...
erranta Posted January 17, 2011 Share Posted January 17, 2011 That should be illegal and criminal. I always thought that's why criminals went to hide out there - coz it's criminal! Quote Link to comment Share on other sites More sharing options...
erranta Posted January 17, 2011 Share Posted January 17, 2011 Whats to stop the banks setting up shell companies, and becoming the countries largest landlords? The chief of Balfour Beatty is also MD of a company building PFi'd 'charity' houses for the homeless! Stinks of sleaze and a nice sideline for them. Quote Link to comment Share on other sites More sharing options...
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