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peter_2008

Buying Sold To Rent Back Properties At Auction

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Found some (about 10) interesting properties in an auction catalogue. Would really appreciate some thoughts/advices.

I checked the legal documents. They have all the hall marks of those sold to rent back scams.

They are all repos from one single property company (looks like an amateur BTL), which is actually registered as an Asian takeaway business. All properties bought around 2008 after the credit crunch. The price paid was around 2004 price. The agreed monthly rent is also about 50% of going market rate.

All tenants are in at least 6 month rent arrears. All rent agreement got at least 6 months remaining on the contract. Judging by their names, all tenants are female foreigners. There is a said “Mr John Smith”, but I am not sure if that is true.

Ok, I am not buying, because they look like nightmares.

But I wonder if I bought them, obviously, I will have difficulty to get the tenants out before the end of the agreed time. It’s also bizarre that neither the landlord nor the bank (Lloyds TSB) could evict the tenants. The tenants must have fought tooth and nail. So who would buy these properties knowing that they won't be able to take possession?

I guess these properties are really marketed for people who have their “way” of getting rid of the tenants without the costly and lengthy legal process (e.g. sending dogs in).

Any comments?

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Found some (about 10) interesting properties in an auction catalogue. Would really appreciate some thoughts/advices.

I checked the legal documents. They have all the hall marks of those sold to rent back scams.

They are all repos from one single property company (looks like an amateur BTL), which is actually registered as an Asian takeaway business. All properties bought around 2008 after the credit crunch. The price paid was around 2004 price. The agreed monthly rent is also about 50% of going market rate.

All tenants are in at least 6 month rent arrears. All rent agreement got at least 6 months remaining on the contract. Judging by their names, all tenants are female foreigners. There is a said “Mr John Smith”, but I am not sure if that is true.

Ok, I am not buying, because they look like nightmares.

But I wonder if I bought them, obviously, I will have difficulty to get the tenants out before the end of the agreed time. It’s also bizarre that neither the landlord nor the bank (Lloyds TSB) could evict the tenants. The tenants must have fought tooth and nail. So who would buy these properties knowing that they won't be able to take possession?

I guess these properties are really marketed for people who have their “way” of getting rid of the tenants without the costly and lengthy legal process (e.g. sending dogs in).

Any comments?

For a tenant 6 months in arrears it should be easy to get rid of them.

I would guess that neither the LL or the bank has tried.

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  • 316 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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