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VacantPossession

Man "purchased House To Live In" Shock

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In a sensational case in Birmingham's crown court today, a Midlands man in his thirties narrowly escaped a jail sentence after admitting that he bought a house in order "to live in it".

Terry Frandhope, a Birmingham teacher, was accused by his building society of attempting to obtain a mortgage by deception. The 32 year old chemistry teacher had applied for a loan on a modest 2 bedroomed terraced house but didn't declare on the forms that his intention all along was to take up residence in the property. The Edgebaston Building Society granted him a loan on the understanding that the property was a "quick-buck Buy to Let-only" self cert mortgage transaction. It was later discovered that Mr Frandhope had no intention of using the property as an investment, but had all along intended to use the house as his home.

The Building Society's solicitor had suggested to the jury that such deception was a bad example to other legitimate investors and had been expecting the judge to give the defendant a custodial sentence in order to deter others from buying property for the purpose of having a roof over their head.

But the judge accepted the defendant's mitigation plea that he had, despite hoodwinking the lender, felt it necessary to actually take up residence in the humble house. In summing up the judge said, "on this occasion I am prepared to waive a prison sentence on the condition that Mr Frandhope gives written assurances that he would never again attempt to apply for a loan for the purposes of living in his own property".

A spokesman for the agent handling the sale, Mr. Rodney Smarm of Fraxtons, said after the case "This gives out all the wrong signals". "Property is there to be invested in and make a large profit....whatever the state of the market". "Houses were never intended to be lived in and we fear this has opened the flood gates to others who may attempt to "buy-to-live" rather than using property for legitimate and morally acceptable purposes of investment".

On Mr Frandhope's side was the increasing suspicion that a few other isolated cases of buying property for shelter reasons had come to light. The judge felt it was unfair to single the defendant out.

The Council of Buy-to-let Lenders issued a statement soon after the case calling for the tightening of lending regulations in order that further "buy-to-live" purchasers would be deterred from breaking the law in future.

(Re-printed from the Edgbaston Property Gazette Issue 499).

VP

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The case makes no sense. In order to be guilty of obtaining by deception there must be an intention to defraud by depriving the lender of their money. Neither seems to have been the case if the borrower intended to live in the property. Breach of contract possibly--but fraud????

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The case makes no sense. In order to be guilty of obtaining by deception there must be an intention to defraud by depriving the lender of their money. Neither seems to have been the case if the borrower intended to live in the property. Breach of contract possibly--but fraud????

Errr it's a spoof.....isn't it? :huh:

A spokesman for the agent handling the sale, Mr. Rodney Smarm of Fraxtons, said after the case "This gives out all the wrong signals". "Property is there to be invested in and make a large profit....whatever the state of the market".

Edited by BTLOptingOut

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Must be--just noticed the name of the EA "Mr. Smarm."

"lie to buy" is being looked at by the government but it seems no one will be in much trouble until the lender loses money.

Edited by Realistbear

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I'm clever 'cos I spotted it, look. I know cos there 'ent any Chemistry teachers anymore only science teachers. And the idea of someone buying a house to LIVE IN......!!! Do you think I'm an idiot??!!! Me?!

I'm off to paint my nails and watch Judge John Deed - "Like Bergerac without the plot"

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The case makes no sense. In order to be guilty of obtaining by deception there must be an intention to defraud by depriving the lender of their money. Neither seems to have been the case if the borrower intended to live in the property. Breach of contract possibly--but fraud????

I didn't think my dose of satire was so subtle that it would actually be believed...not sure whether to be flattered or somewhat alarmed.

VP

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Guest muttley

:lol::lol::lol:

Very funny.

But what does it tell us if a satirical article such as this is published in "The Edgbaston Property Gazette"?

Am I alone in thinking that this is an example of VI gallows humour?

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  • 338 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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