thedebtisreal Posted September 26, 2007 Share Posted September 26, 2007 The collapse of the new build BTL. Posted by Soul Reaver initially, but I felt deserved it's own thread. http://www.dailymail.co.uk/pages/dmstandar..._id=56&ct=5 A life of financial freedom, travel, and a luxurious holiday home in a sunny country from which to manage a property portfolio worth millions. These are the dreams conjured up by the countless property investment clubs, developers and other middlemen that have profited in recent years from the boom in buy-to-let. But for a growing number, the dream is now a nightmare of repossession and ruin. Anne, not her real name, has been a taxi driver for most of her life. 'Driving day after day is long, hard work,' she says. So in January 2002, in a brave attempt to escape the daily grind, she parted with £6,000 of her precious savings to attend a three-day property investment seminar in London. It promised to change her life - and it has. Organised by one of a myriad of shady property clubs that have long since disappeared, the seminar was nothing but a hard sell. 'They said there was no cash needed,' she says. 'The warning bells should have rung then.' But they didn't and instead Anne, 52, who lives near Glasgow, was introduced to an array of mortgage brokers, developers' agents, solicitors and property valuers. Over the next three years she was persuaded to buy four flats in three Glasgow developments. The flats were all bought before they were complete, with little or no down payments. The developers' agents, and all the other middlemen, took a commission. Most of the individuals and companies involved in these transactions have since vanished into the murky and unregulated world of property promotion and development. Their names, phone numbers and employees have disappeared. But the flats, and the massive mortgage debts attached to them, have not. Tenants were hard to find. No flat ever achieved the rents promised by the valuers. And struggling to cover mortgage repayments, Anne racked up more debt on credit cards and loans. Even though the flats were new and their values questionable, she had no trouble finding mortgage lenders. Glasgow nightmare: One of the blocks where Anne bought a flat. Over the years, mortgages came from numerous banks, including big names such as GMAC and Bank of Scotland. By this year, though, Anne had moved the mortgages to one lender, Mortgage Express, part of Bradford & Bingley. Earlier this year, Mortgage Express started repossession. All four flats are now in the hands of the lender, with three on the market at prices far lower than their original valuations - and lower than the mortgages secured on them. Anne is distraught. 'I've worked so hard all my life,' she says. 'Nothing has come easily for me. I went on that property investment course and I came back full of promises, bowled over with what could be achieved. I was told I could make £100,000 on these properties. I didn't know that hundreds of people were trying to do the same thing. Maybe I was naive, but I've done nothing wrong.' Mortgage Express told Financial Mail it had not yet launched bankruptcy proceedings to take possession of Anne's own home, but would not rule out doing so. 'We always maintain that buy-to-let is not without risk,' a spokesman said. For Anne, the loss of her own home would be the final straw. 'I can work till I drop, but I'll never own a home,' she says. 'I'm too old to get on the property ladder again. People might look at me and say I was greedy, but I wouldn't say so. I didn't want to be really wealthy. What I most wanted was simply financial security.' Quote Link to comment Share on other sites More sharing options...
Dr Doom Posted September 26, 2007 Share Posted September 26, 2007 A lot of these BTL victims will probably end up topping themselves. Quote Link to comment Share on other sites More sharing options...
Dr Doom Posted September 26, 2007 Share Posted September 26, 2007 ....and then it will be time to stop laughing. Quote Link to comment Share on other sites More sharing options...
muggle Posted September 26, 2007 Share Posted September 26, 2007 For Anne, the loss of her own home would be the final straw. 'I can work till I drop, but I'll never own a home,' she says. 'I'm too old to get on the property ladder... Oh, the irony. Quote Link to comment Share on other sites More sharing options...
thedebtisreal Posted September 26, 2007 Author Share Posted September 26, 2007 Oh, the irony. I genuinely can't work out whether it is tragedy or comedy. Quote Link to comment Share on other sites More sharing options...
dogbox Posted September 26, 2007 Share Posted September 26, 2007 No sympathy from me, infact I take some sick pleasure in thier demise. The reason - they are sooo ruddy thick and sheep like, not to mention smug. A guy at my gym always replies 'but houses only go up, I'll just draw out some money every 2 years" . He is that certain of himself, and thinks he's really intelligent when in fact he is just a hear follower. But I'm not bitter you understand Quote Link to comment Share on other sites More sharing options...
The Colour Posted September 26, 2007 Share Posted September 26, 2007 No sympathy from me, infact I take some sick pleasure in thier demise. Not sick, normal. As for me, I LOLLED!!! Quote Link to comment Share on other sites More sharing options...
poddy Posted September 26, 2007 Share Posted September 26, 2007 Isn't part of the reason for the so-called housing shortage that most of these flats (especially new-build) are empty as they've been bought by speculators who are/were simply looking to profit on the capital increase rather than have the fuss of pesky tennants? They therefore are'nt willing to sell as they think they'll just hang on as prices will never fall will they! I work in Liverpool and the amount of empty new-build here is terrible and they're still building! And anyway, how many people really want to live in flats, whether or not they've been designed by Conran or whichever other so called designer is being paid a fortune to have their name promoting the flats. They are right for some but not that many people. I don't feel sorry at all for these speculators, did they/do they feel sorry for all the people they've effectively priced out of housing or for those who've had to pay over the odds to buy a house that will shortly be worth a lot less than their mortgage, I think not. I'm one of the lucky ones by the way as I'm lucky enough to own my own home having bought it in 93 but I think what's happened to this generation of would-be homeowners is absolutely disgusting. These speculators took a risk, just like buying shares-tough luck! Homes shouldn't be treated as an investment, they are what they say-a home. Sorry, rant over now. Quote Link to comment Share on other sites More sharing options...
Umaguma Posted September 26, 2007 Share Posted September 26, 2007 couldn't agree more poddy Quote Link to comment Share on other sites More sharing options...
Badger Posted September 26, 2007 Share Posted September 26, 2007 Isn't part of the reason for the so-called housing shortage that most of these flats (especially new-build) are empty as they've been bought by speculators who are/were simply looking to profit on the capital increase rather than have the fuss of pesky tennants? They therefore are'nt willing to sell as they think they'll just hang on as prices will never fall will they!I work in Liverpool and the amount of empty new-build here is terrible and they're still building! Sorry, rant over now. Makes sense - don't sell them, don't rent them out, keep up the 'shortage' and demand = prices rising Quote Link to comment Share on other sites More sharing options...
Deny Posted September 26, 2007 Share Posted September 26, 2007 Well there's precious little else to laugh at in this godforsaken sh1thouse of a society the NuLabia junta preside over, so hahahaha, you were taken in, you gambled, you lost, and you'll find 'sympathy' in the dictionary between 'sh1t' and 'syphilis'. You can't have a get rich quick scheme where everyone gets rich quick. 'Success' in a capitalist market depends on the 'failure' of others. Quote Link to comment Share on other sites More sharing options...
muggle Posted September 26, 2007 Share Posted September 26, 2007 ... hahahaha, you were taken in, you gambled, you lost, and you'll find 'sympathy' in the dictionary between 'sh1t' and 'syphilis'. I nominate that as the quote of the day Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 26, 2007 Share Posted September 26, 2007 Makes sense - don't sell them, don't rent them out, keep up the 'shortage' and demand = prices rising But how much will it be worth when the pound tanks? as our economy is in danger because of these BTL people. Quote Link to comment Share on other sites More sharing options...
Badger Posted September 26, 2007 Share Posted September 26, 2007 I vote we make like the monks in Burma, some lessons to be learnt there Quote Link to comment Share on other sites More sharing options...
Timm Posted September 26, 2007 Share Posted September 26, 2007 A lot of these BTL victims will probably end up topping themselves. Which is no laughing matter. However, their estates will need to be disposed of... Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted September 26, 2007 Share Posted September 26, 2007 "People might look at me and say I was greedy, but I wouldn't say so. I didn't want to be really wealthy. What I most wanted was simply financial security" erm.... Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted September 26, 2007 Share Posted September 26, 2007 Well there's precious little else to laugh at in this godforsaken sh1thouse of a society the NuLabia junta preside over, so hahahaha, you were taken in, you gambled, you lost, and you'll find 'sympathy' in the dictionary between 'sh1t' and 'syphilis'. You can't have a get rich quick scheme where everyone gets rich quick. 'Success' in a capitalist market depends on the 'failure' of others. Brilliant, although I think sycophant comes between sh1t and sympathy. Quote Link to comment Share on other sites More sharing options...
godless Posted September 26, 2007 Share Posted September 26, 2007 I nominate that as the quote of the day Seconded, a cracker! Quote Link to comment Share on other sites More sharing options...
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