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Mr Yogi

Corrupt Dealings Between Developers And Btlers

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I heard an interesting piece on the radio early yesterday morning on the way to work but can't find any reference to it on the BBC website or on here. It was on either Radio 4 or 5.

A bloke from the Portman Building Society was being interviewed about the practice of developers selling flats in bulk to BTL investors at up to a 25% discount. Nothing wrong with this per se, it happens in every other walk of life.

However, the problem is that the selling price is recorded with the Land Registry at the full price, with the discount being paid as a kickback under the counter to the investor. This of course leads to properties being listed on the LR at an inflated price, meaning that all future valuations are based on erroneous figures.

The Portman bloke was understandably worried that he was being asked to lend on false figures, and said that his company's policy was not to lend on new build BTL at all. He asked the pertinant question, though; why should it be up to lenders to police this practice - it should be made illegal.

I am amazed that it is not already illegal! More blatent corruption and market rigging it would be difficult to imagine.

Edited by Mr Yogi

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Just noticed that there is a pinned thread relating to this practice going back 18 months. I can't believe that there has not been a greater fuss made about it.

Genuine FTBers are buying flats in developments based upon previous selling prices which are outright lies!

It's a national scandal!

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Just noticed that there is a pinned thread relating to this practice going back 18 months. I can't believe that there has not been a greater fuss made about it.

Genuine FTBers are buying flats in developments based upon previous selling prices which are outright lies!

It's a national scandal!

Portsmouth city council and developers are involved in MAJOR backhanders - go to www.southcoastdesert.blogspot.com

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