Jump to content
House Price Crash Forum
cashinmattress

Scumlord Gets It In The Neck

Recommended Posts

link

Bank Pulls Plug on Britain’s Worst Landlord

A buy to let mortgage lender called in more than £1 million of loans when a landlord described as one of Britain’s worst slum landlords was arrested for fraud.

The Co-operative Bank ruined the rental business by demanding Joshua Danski repay his borrowings when managers were alerted to his poor business practices.

The bank indicated that his actions contravened their ethical, fair lending policy.

As a result, Dreamport Properties, Danski’s company that once ran 200 buy to let and house in multiple occupation (HMO) properties collapsed.

Meanwhile, Danski was sentenced to a community service order after pleading guilty to conspiracy to defraud at Newcastle Crown Court.

link

Rogue landlord in the dock for benefit scam

A ROGUE landlord whose slum properties were some of the “worst ever seen” claimed thousands of pounds in a benefit con.

Joshua Danski pretended tenants were still in the properties after they moved out, claiming the cash from the public purse.

But he was caught when police launched an investigation into his business, Dreamport Properties.

Danski, 32, admitted conspiracy to defraud between 2007 and 2009 when he appeared at Newcastle Crown Court.

The court heard how the landlord, who once owned more than 200 properties across the region, mainly let to low income tenants who relied on housing benefit.

If they fell into rent arrears, Danski was entitled to apply for the benefit to be paid directly to him.

But in three cases, the father-of-four carried on claiming benefit after the tenants moved.

He claimed a total of £5,497.20 from Newcastle City Council for houses in Pilgrim Gardens, Atkinson Terrace, and Hampstead Road, all in the city’s West End..

Danski’s company also attempted to make a false claim for a house in Clara Street.

The court heard a tenant had moved into the house - but stayed only for three days, because it had no electricity, water or gas.

But weeks later, the council received a fax purporting to be from the tenant saying he had changed his mind and still lived there. They then received a request for benefit from Dreamport Properties.

Defending, Jonathon Goldberg QC said Danski, a devout Orthodox Jew who attends synagogue several times a day, had been a victim of his own success.

“The company had over 200 properties,” he said. “The business had grown too fast and there weren’t proper managerial controls in place.”

He said Danski, formerly of Whitehall Road, Bensham, Gateshead, had not actively lied to the council to claim the benefit, but neglected to tell them the tenants had moved out.

Mr Goldberg added: “His business is now in administration. The mortgages for the properties were with the Co-pperative Bank, at one stage he was borrowing over £1m. When he was arrested he got a lot of bad publicity. The bank came to hear of this and they have a policy of ethical lending. They called in his mortgages in December 2010, and that was the end of the business.

“He has really lost everything in financial terms. He is living on the charity of his father-in-law in Manchester.”

Judge Michael Cartlidge sentenced Danski to 240 hours of unpaid work. He also scheduled a Proceeds of Crime Hearing to see if cash can be reclaimed.

Last year, a closure order was placed on eight of Danski’s flats in Back Street, Winlaton, Gateshead, after police and council investigations revealed tenants were living in slum conditions.

Peter Thompson of Gateshead Council said at the time: “This is one of the worst cases we have seen. We have rarely seen such poor property management and we find it almost unbelievable a landlord can allow his property to deteriorate into such an unsafe condition.”

Danski also featured in a BBC Panorama documentary about rogue landlords

Nobody complained during the bubble years, when banks were falling hand over foot to stuff the pockets of idiots like this with mortgage papers.

There are plenty out there still taking advantage of both poor folk and our dimwitted government. Well, its not really taking advantage of, is it? Its criminal fraud.

People like this do a lot of harm to greater society, but will only get a slap on the wrist.

Strange little country is Blighty.

Share this post


Link to post
Share on other sites

The question the Co-Op have to ask themselves is how ethical is their BTL lending anyway.

Pricing out young first time buyers who will then expect to be farmed for the rest of their lives.

Better question. How could they find themselves lending to an unethical company in the first place. All their literature states their core foundation is ethical lending. An easy claim to make if it simply means 'we don't ask any questions nor check our customers in any reasonable detail, so everyone must be behaving ethically'. So what checks do they do to be able to make such a highfaultin claim to being the bastion of moral standards?

I assume Coop just doesn't lend to drug dealers or gun runners. Simple that one as I am sure no reputable banks would lend to a person who put that on a form.

Share this post


Link to post
Share on other sites

See...that's the little know thing about mortgages...the lenders can:

"mortgage lender called in"

a mortgage.

And when you do...you have to pay or loose the building.

Despite what the banksters tell you...a mortgage is sh**t

Share this post


Link to post
Share on other sites

Does 6 weeks of sweeping up fallen leaves for the council or whatever his community service obligation is count as, "getting it in the neck"?

The articles also don't mention if he has been banned from being a compan director, or is this taken as read following a fraud conviction?

Share this post


Link to post
Share on other sites

The question the Co-Op have to ask themselves is how ethical is their BTL lending anyway.

Pricing out young first time buyers who will then expect to be farmed for the rest of their lives.

Not all BTL is pure evil. I've a friend who manages to prevent his sister and his mother from having to live on a pretty rough council estate by renting out flats to them.

Share this post


Link to post
Share on other sites

See...that's the little know thing about mortgages...the lenders can:

"mortgage lender called in"

a mortgage.

And when you do...you have to pay or loose the building.

Despite what the banksters tell you...a mortgage is sh**t

Commercial loans absolutely. Which includes a BTL portfolio.

Personal / Residential loans cannot be called in. Please correct me if I am wrong.

Share this post


Link to post
Share on other sites

Not all BTL is pure evil. I've a friend who manages to prevent his sister and his mother from having to live on a pretty rough council estate by renting out flats to them.

And who pays the rent? Housing Benefit?

No, actually, the combination of BTL and Housing Benefit is pure evil. This family has enough money to buy investment properties, but they're stiffing the taxpayer to pay their rent for them, and fund the investments, all at the same time.

Edited by RichC

Share this post


Link to post
Share on other sites

Does 6 weeks of sweeping up fallen leaves for the council or whatever his community service obligation is count as, "getting it in the neck"?

The articles also don't mention if he has been banned from being a compan director, or is this taken as read following a fraud conviction?

To quote the article

Co-operative ... demanding Joshua Danski repay his borrowings ...

Maybe I should have said, got his hand cut off, or whatever.

Still, lights out for this creep for a while, as I don't imagine he can flog what he's got and repay the loans in this falling market, and nobody is going to spot him the cash.

Share this post


Link to post
Share on other sites

link

link

Nobody complained during the bubble years, when banks were falling hand over foot to stuff the pockets of idiots like this with mortgage papers.

There are plenty out there still taking advantage of both poor folk and our dimwitted government. Well, its not really taking advantage of, is it? Its criminal fraud.

People like this do a lot of harm to greater society, but will only get a slap on the wrist.

Strange little country is Blighty.

It's why fraud is such an attractive option nowadays. Why bother getting fcked up the **** 50 odd hours a week to be in perpetual debt when you can defraud the state? Chances are if you did it for 40 years and weren't a total muppet you might spend 5 in a low security jail and be swimming in cash for the other 35. Knew a bloke who used to smuggle fags and booze in the country. No violence ust evasion of excise. Got caught every year or so and would spend a couple of months in jail. Used to walk around with a brick of twenties. Apparently he'd make about 50k a week. A freeman.

If the establishment wanted to stop it they could do so.

Share this post


Link to post
Share on other sites

To quote the article

Maybe I should have said, got his hand cut off, or whatever.

Still, lights out for this creep for a while, as I don't imagine he can flog what he's got and repay the loans in this falling market, and nobody is going to spot him the cash.

OIC. Apologies.

Share this post


Link to post
Share on other sites

link

link

Nobody complained during the bubble years, when banks were falling hand over foot to stuff the pockets of idiots like this with mortgage papers.

There are plenty out there still taking advantage of both poor folk and our dimwitted government. Well, its not really taking advantage of, is it? Its criminal fraud.

People like this do a lot of harm to greater society, but will only get a slap on the wrist.

Strange little country is Blighty.

240 hrs of community service is a joke for this level of behaviour.

If ever a case were needed for the regulation of BTL and the rights of tenents this is it. For all this mess to have happened under a 'Labour' government is quite shocking.

What happened to them representing the 'working class'?!

Share this post


Link to post
Share on other sites

Not all pimping is pure evil. I've a friend who manages to prevent his sister and his mother from having to live on a pretty rough council estate by finding good work for them.

Adjusted for you.

Share this post


Link to post
Share on other sites

240 hrs of community service is a joke for this level of behaviour.

If ever a case were needed for the regulation of BTL and the rights of tenents this is it. For all this mess to have happened under a 'Labour' government is quite shocking.

What happened to them representing the 'working class'?!

Labour - bllocks!

240hrs - it's a market though isn't it? If that is the punishment and the rewards are measured in 1000s per annum it stands more should be trying this kind of illegal enterprise.

Or do you honestly think there's a convincing moral argument to sway the unwashed masses? Ha.

Weak state, permissive society, amoral population.

Share this post


Link to post
Share on other sites

Nobody complained during the bubble years, when banks were falling hand over foot to stuff the pockets of idiots like this with mortgage papers.

There are plenty out there still taking advantage of both poor folk and our dimwitted government. Well, its not really taking advantage of, is it? Its criminal fraud.

People like this do a lot of harm to greater society, but will only get a slap on the wrist.

Strange little country is Blighty.

You are SO right.... :rolleyes:

Share this post


Link to post
Share on other sites

Seems pretty easy to sort out.....

http://www.landlordzone.co.uk/forums/showthread.php?34022-Renting-to-a-relative-contrived-tenancy

Given there seem to be several threads on 'Landlordzone' about this, seems it is fairly common.

Its clear from reading those threads that when interest rates return to normal there is going to be some real problems all over the country.

Will housing benefit rise if a LL raises the rent.

I'm sure that this government have no idea what has been going on with HB. If they do know then god help all those involved in this disaster.

It might be interesting to ask the relevant Ministers what the rules are regarding HB and family members and if they have a figure for how many people are renting from a relative.

Share this post


Link to post
Share on other sites

And who pays the rent? Housing Benefit?

No, actually, the combination of BTL and Housing Benefit is pure evil. This family has enough money to buy investment properties, but they're stiffing the taxpayer to pay their rent for them, and fund the investments, all at the same time.

They both work low paid jobs but obviously receive some sort of state aid (doesn't everyone). If it wasn't for the option of BTL they would probably be better off being on the dole full time, on full housing benefit, and renting directly off the local council instead.

Yes there is an issue with housing benefit in the private sector - it's both a poverty trap, puts an artificial floor on rents, and also helps price out FTBs. However my mate came from a poor background, worked hard, earns decent money, and was able to keep his family out of a council estate by buying flats for them with BTL mortgages. I don't see how the BTL part is "pure evil" - the housing benefit part has issues, but not the BTL - he has a right to house his family regardless of whether it's under the same roof or not.

Share this post


Link to post
Share on other sites

They both work low paid jobs but obviously receive some sort of state aid (doesn't everyone). If it wasn't for the option of BTL they would probably be better off being on the dole full time, on full housing benefit, and renting directly off the local council instead.

Yes there is an issue with housing benefit in the private sector - it's both a poverty trap, puts an artificial floor on rents, and also helps price out FTBs. However my mate came from a poor background, worked hard, earns decent money, and was able to keep his family out of a council estate by buying flats for them with BTL mortgages. I don't see how the BTL part is "pure evil" - the housing benefit part has issues, but not the BTL - he has a right to house his family regardless of whether it's under the same roof or not.

I thought that BTL mortgages' Ts&Cs specifically disallow the mortgagor or any close family from staying in the property.

Share this post


Link to post
Share on other sites

Commercial loans absolutely. Which includes a BTL portfolio.

Personal / Residential loans cannot be called in. Please correct me if I am wrong.

I'm just taking out a mortgage, and I don't think they can "call it in" so long as you make your monthly payments.

However, as soon as you miss them, i guess they can repossess.

Share this post


Link to post
Share on other sites

I thought that BTL mortgages' Ts&Cs specifically disallow the mortgagor or any close family from staying in the property.

Yeah I wondered about that - but he said he found finance in the end (probably through a broker who "ticked the wrong box by mistake"). Mind you, we're talking about 10 years ago when they were giving these mortgages away.

Share this post


Link to post
Share on other sites

So Housing Benefit is involved then. Disgusted.

Disgusted with who? The people who receive it or the people who give it out?

If it is an arm's length commercial transaction, why do they just happen to choose a tenancy with a family member.

Obviously it's not an arm's length commercial transaction - his intent was to house his mum and his sister. I doubt if he's made much money from it either - he'd be paying 40% tax on any profit.

Share this post


Link to post
Share on other sites

I'm just taking out a mortgage, and I don't think they can "call it in" so long as you make your monthly payments.

However, as soon as you miss them, i guess they can repossess.

IIRC there used to be a cluse called margin call, not sure if its still there,

and its iff the LTV raises to the original terms of the mortgage during your term, they can call the difference in as a lump sum to being you back to your original LTV

IE you takea 80% LTV mortgage, house prices drop, your LTV works out at 90%, they can ask for that money back or they take your house.

is YOUR responsiblilty to maintain your LTV, regardless of market conditions

Share this post


Link to post
Share on other sites

IIRC there used to be a cluse called margin call, not sure if its still there,

and its iff the LTV raises to the original terms of the mortgage during your term, they can call the difference in as a lump sum to being you back to your original LTV

IE you takea 80% LTV mortgage, house prices drop, your LTV works out at 90%, they can ask for that money back or they take your house.

is YOUR responsiblilty to maintain your LTV, regardless of market conditions

Yeah I remember a buzz about margin calls on this site a few years ago when prices were heading south. Especially re. BTL mortgages. Then all the main BTL lenders got nationalised and told to go easy on people.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.