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EmmaRoid

Mortgage Fraud?

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I have been asked by my landlord to sign a new contract so he can remortgage.

However he needs a far higher rent to get the mortgage deal So I have been asked to sign a contract at a high rent for their benefit and a real rental contract at a lower rate (but with uplift from current rent).

In my mind this would constitute mortgage fraud and I have no intention of signing something that might leave me on the hook for more money or more pertinently another 12 months in this shithole.

So it looks like I'm moving in 6 weeks. I'm not looking for advice, I'm not prepared to sign for 12 months which should also ****** up his attempts to remortgage and I bet I'll have to turn the screw on getting my deposit back.

I just wanted to share about the excellent moral standard of btl landlord in this country.

Edited by 7 Year Itch

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Jessus wept. What a creep. It’s definitely mortgage fraud and he wants you to participate, nice. Has the surveyor been around yet? It’s him/her who would determine the rental value as part of the survey.

LL deserves to be caught.

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I have been asked by my landlord to sign a new contract so he can remortgage.

However he needs a far higher rent to get the mortgage deal So I have been asked to sign a contract at a high rent for their benefit and a real rental contract at a lower rate (but with uplift from current rent).

I just wanted to share about the excellent moral standard of btl landlord in this country.

it is fraud. Report him to hmrc as he's probably not doing his taxes properly.

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I did some digging on one of the company information websites a while back and there is a potential financial black mark against the LL but I don't have access to the London Gazette to read the notices or where to look next.

We were looking to move anyway and have missed out on a couple of buys and rentals recently so this is just a shove to help us jump. Will be viewing a rental we rejected 3 years ago because it was a dump, lol.

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Might be an idea to ask him for both copies of the contract, then contact HMRC and his lender /when you've sorted your next rental.

Clearly fraud in which he's explicitly asked you to conspire.

Dirty rotten scoundrel!

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I did some digging on one of the company information websites a while back and there is a potential financial black mark against the LL but I don't have access to the London Gazette to read the notices or where to look next.

We were looking to move anyway and have missed out on a couple of buys and rentals recently so this is just a shove to help us jump. Will be viewing a rental we rejected 3 years ago because it was a dump, lol.

He hasn't really given you any other option but to move - good thing you were planning to.

LG covers insolvency https://www.thegazette.co.uk/

Any other registered bad credit should be here.http://www.trustonline.org.uk/

Been reading a bit today on broker forums about BTL rental vals coming in lower than expected. Only one lender I could find who would accept a substancial uplift in rental val varified by means of an existing tenancy agreement. Even then the surveyor is held responsible for the figure, therefore risking his/her professional reputation & insurance. Your LL may not get his remo. Not that it really matters much to you considering you want to leave anyway. Hope you find somewhere good.

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He hasn't really given you any other option but to move - good thing you were planning to.

LG covers insolvency https://www.thegazette.co.uk/

Any other registered bad credit should be here.http://www.trustonline.org.uk/

Been reading a bit today on broker forums about BTL rental vals coming in lower than expected. Only one lender I could find who would accept a substancial uplift in rental val varified by means of an existing tenancy agreement. Even then the surveyor is held responsible for the figure, therefore risking his/her professional reputation & insurance. Your LL may not get his remo. Not that it really matters much to you considering you want to leave anyway. Hope you find somewhere good.

The LL quoted rent certainly made me raise an eyebrow but I'm not sure quite where the truth lies.

Mortgage is certainly far in excess of late 90s purchase price. Probably multiples of.

What sort of rent cover percentages and deposit requirements do you think the LL might be looking at? I was working on 125%, 75% LTV and BR+4% tracker.

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The LL quoted rent certainly made me raise an eyebrow but I'm not sure quite where the truth lies.

Mortgage is certainly far in excess of late 90s purchase price. Probably multiples of.

What sort of rent cover percentages and deposit requirements do you think the LL might be looking at? I was working on 125%, 75% LTV and BR+4% tracker.

A lower rate probably but the rest sounds about right for regular BTL. You mentioned something about previous or potential 'black mark' against LL. If registered that would affect LTV, & rate. Any idea who the lender is? Sometimes the surveyor will say they are on behalf on 'who ever lender' I could get a better idea of LL's credit status, the rate, the LTV & rental projection needed.

Would you consider going to Shelter or any other housing rights group with this? It's a disgusting example of how LL's can & do manipulate tenants. In order that your home continues to be your home you will help me commit fraud. Incredible arrogance.

http://www.bmsolutions.co.uk/products/buytolet/ Good calculators on this site and product rates for good credit BTL.

http://www.themortgageworks.co.uk/products/buy-to-let-mortgages

http://www.mortgageintroducer.com/mortgage-rates.asp BTL best buy table.

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A lower rate probably but the rest sounds about right for regular BTL. You mentioned something about previous or potential 'black mark' against LL. If registered that would affect LTV, & rate. Any idea who the lender is? Sometimes the surveyor will say they are on behalf on 'who ever lender' I could get a better idea of LL's credit status, the rate, the LTV & rental projection needed.

Would you consider going to Shelter or any other housing rights group with this? It's a disgusting example of how LL's can & do manipulate tenants. In order that your home continues to be your home you will help me commit fraud. Incredible arrogance.

http://www.bmsolutions.co.uk/products/buytolet/ Good calculators on this site and product rates for good credit BTL.

http://www.themortgageworks.co.uk/products/buy-to-let-mortgages

http://www.mortgageintroducer.com/mortgage-rates.asp BTL best buy table.

I mark it up as a possible black mark because I dont have access to the detail. Its not actually a property related company and he is no longer a director so I am unsure of credit worthiness fallout.

A lower rate wouldn't make sense with the numbers I've been told. Nothing else to go on so must assume they are true.

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Can only hope there is some hidden trouble this landlord, and hopefully many other landlords, finds themselves in.

The gall of putting you in that situation - and raising the rent anyway.

Having thought about it, I would not report it to any authority. Just hope the market itself, their debt positions (ect) finds them out.

In the meantime though honest people having to suffer such approaches and scheming.

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I haven't replied yet as I'm more concerned about where I'm going and its leading towards giving notice come next rent day.

I'm going to back away from this 'deal' on the basis that if he were repossessed the lender would expect me to see out any term at the higher rate. I also don't want to try putting a break clause in a contract just so LL has something in place. Too much trouble.

This is a real cluster******, if what I've been fed is true, as the LL is going to have to find new tenants before the remo. To make matters worse I doubt the rent that was stated as being required will be met in its current condition. It needs a years rent spending on improvements before its worth it imho.

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Jessus wept. What a creep. It’s definitely mortgage fraud and he wants you to participate, nice. Has the surveyor been around yet? It’s him/her who would determine the rental value as part of the survey.

LL deserves to be caught.

Definately.

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I have heard nothing since and I am in no rush whatsoever to bring the subject up.

We have been looking for somewhere else but we've lost out on some. I think that we will definitely move in the autumn unless my wife changes her mind again.

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Was thinking about this the other day, came up in conversation with someone who was in a similar situation to you. They moved but ended up paying a higher rent for practically the same house in a different street. Some scummy LL's out there.

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This is why BTL needs to be regulated - to get rid of these pathetic, amateur landlords. Why has he got to drag you into his mess?

I guess your LL is panicing - no one would really want to do this unless they have to.

Hope you come up with a solution that is good for you and in the process expose BTL for what it is.

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Is signing a 12 month contract a regular thing for landlords to request of tenants each time they want to remortgage (legally or otherwise)?

Rather belittles the flexibility of renting privately doesn't it? :rolleyes:

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Is signing a 12 month contract a regular thing for landlords to request of tenants each time they want to remortgage (legally or otherwise)?

Rather belittles the flexibility of renting privately doesn't it? :rolleyes:

I don't know, it's the first time in 3 years that the subject had been brought up by the landlord.

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This is why BTL needs to be regulated - to get rid of these pathetic, amateur landlords. Why has he got to drag you into his mess?

I guess your LL is panicing - no one would really want to do this unless they have to.

Hope you come up with a solution that is good for you and in the process expose BTL for what it is.

I'm not sure he is that 'amatuer'. As mentioned at the start of the thread, I've done a companies search on him (and partner) and he has fingers in a few pies and not particularly property dominated either. And I speaking to the plumber and carpet fitter over the years they have a number of properties they rent out. They've certainly MEWed on this place and must owe 3-4 times the original purchase price of this particular house. So this is probably what passes for professional.

Which is even scarier.

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