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Two Held As Huge Losses Investigated By Police

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Losses of millions of pounds in the Leeds buy-to-let market are being investigated by the Serious Fraud Office.

Today West Yorkshire Police said two men, both from Leeds, had been arrested and bailed yesterday pending further inquiries.

The investigation of the market in which investors buy up property to rent at a profit, focuses on the roles of property valuers, surveyors and lawyers involved in the deals.

The YEP has discovered that many investors ended up having properties repossessed because they had been overvalued and investors could not charge enough rent to meet mortgage repayments.

The investigation is being led by the government Serious Fraud Office, backed by West Yorkshire Police economic crime unit, the successor to the force's fraud squad.

Neither would name the company and property dealer at the centre of the allegations or comment on the investigation today.

Johnette Motler, 62, lost £1.7m after taking out mortgages on six properties, including two 'luxury' en-suite apartments in the Hyde Park area of Leeds.

Ms Motler was sold each property on the understanding that it was a complete package. As an "armchair investor" she was told each address would receive a luxury makeover, be already tenanted and be managed for a 10 per cent fee.

When tenants started to withhold rents due to the poor condition of the properties she looked into re-selling, only to discover she had lost around £100,000 on each investment.

"I was to be an armchair investor. But in reality the properties were in a terrible condition, tenants started to withhold rent and not pay

bills.

"I couldn't resell the houses and apartments as once revalued they were worth a lot less than I had paid.

Sued

"Today all my houses have been repossessed, I am being sued and I owe at least £70,000 to loan companies. My home is at risk and I will be filing for bankruptcy."

Many of the houses bought are at the lower end of the property market.

Most were advertised nationally, attracting investors particularly from the south.

Some investors are known to have complained to police that they have suffered huge losses because the properties did not reach their anticipated potential. :blink:

http://www.yorkshireeveningpost.co.uk/news...sses.3364876.jp

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Armchair investor? Seems like they actually took pride in letting somebody else manage their finances and they wanted big profits at full arms length with no responsibility, no interaction, no pain.

Bloody hell, well they are feeling the pain now.

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Guest Shedfish

bloody hell - millions of us can't afford one house to live in, because of numpties like this making BAD INVESTMENT DECISIONS. can we call in the police? the army? i thought not.

jesus. i too run a small business. if i go bust can i call the police?

no, i just get taxed to death to bail idiots like this out, while paying more of my hard earned towards someone elses mortgage.

****

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Guest DissipatedYouthIsValuable
bloody hell - millions of us can't afford one house to live in, because of numpties like this making BAD INVESTMENT DECISIONS. can we call in the police? the army? i thought not.

jesus. i too run a small business. if i go bust can i call the police?

no, i just get taxed to death to bail idiots like this out, while paying more of my hard earned towards someone elses mortgage.

****

'Machete-A-BTL Day'

You know it makes sense.

It's this kind of rage which makes me want to take up fox hunting.

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Johnette Motler, 62, lost £1.7m after taking out mortgages on six properties, including two 'luxury' en-suite apartments in the Hyde Park area of Leeds.

As an "armchair investor" a 10 per cent fee.

At 62 still greedy,and an armchair dealing :lol:

I have been doing armchair dealing on NRK bought and sold 4 times,today done very well :)

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Armchair investor? Seems like they actually took pride in letting somebody else manage their finances and they wanted big profits at full arms length with no responsibility, no interaction, no pain.

Bloody hell, well they are feeling the pain now.

Why do people not realise that high rewrd equals either risk or a dodgy deal. If something is such a good investment why would someone else cut you in?

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Ms Motler was sold each property on the understanding that it was a complete package.

Otherwise known in the trade as "a bunch of c0ck".

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Armchair investor? Seems like they actually took pride in letting somebody else manage their finances and they wanted big profits at full arms length with no responsibility, no interaction, no pain.

Bloody hell, well they are feeling the pain now.

Seems like the armchair is morphing into an electric chair :o

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oh dear - what a shame - never mind

where do you start - we have said before that there are far to many flats in Leeds - needless to say the bulls denied this - maybe one of the bulls if someone who has lost lots of money on this and would like to identify themselves

the words 'overvalued by surveyor' suggests that the buyer has an implict right to only make a profit i.e. if it doesn't go up then it must have been overvalued

i suggest that anyone who has bought a 2 bed flat in or near a city centre in the last 5 years is looking at at least a 40% loss

even if those people who have complained actually have a valid complant (and I don't for a minute think they have), one things for sure, they aren't getting any money back

p.s. well done to the YEP for great investigative journalism :lol::lol::lol: absolute genius

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premierdeckchair.jpg

"I'm almost finished Ms Motler"

surely more like...

Clockwork%20Eyes%20Cropped.jpg

?

"BTL is good... profits are guaranteed... no risk at all... let us do the work..."

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oh dear - what a shame - never mind

where do you start - we have said before that there are far to many flats in Leeds - needless to say the bulls denied this - maybe one of the bulls if someone who has lost lots of money on this and would like to identify themselves

the words 'overvalued by surveyor' suggests that the buyer has an implict right to only make a profit i.e. if it doesn't go up then it must have been overvalued

i suggest that anyone who has bought a 2 bed flat in or near a city centre in the last 5 years is looking at at least a 40% loss

even if those people who have complained actually have a valid complant (and I don't for a minute think they have), one things for sure, they aren't getting any money back

p.s. well done to the YEP for great investigative journalism :lol::lol::lol: absolute genius

I say the two arrested were the clever ones- they new there was no market for BTL, so they used other peoples money- wheres the fraud- we need to see the contract before judging

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surely more like...

Clockwork%20Eyes%20Cropped.jpg

?

"BTL is good... profits are guaranteed... no risk at all... let us do the work..."

No, not nearly victimising enough. You're looking more for...

wagatcotwr16.jpg

"We were sucked into it!"

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Is this why the country is awash is empty new build BTL apartments?

If so Mew Labour need to build more prisons fast.

They are still advertising these scams in London, guaranteed returns, tenants etc..

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Guest Bart of Darkness
Armchair investor? Seems like they actually took pride in letting somebody else manage their finances and they wanted big profits at full arms length with no responsibility, no interaction, no pain.

No pain, no gain. ;)

Errm......

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Depends what she was promised in writing.

Fraud is fraud whether someone is stupid/naive or not. If it were a Unit Trust company that was knowingly selling its funds with fraudulent valuations on the underlying shares and not collecting dividends or mis-representing the assets then it would be exactly the same. Not sure how property is de facto different.

How can she have bought 6 "lower end" properties in Leeds and somehow lost £1.7m though. That is some going.

Clearly there has been a huge level of fraud in this market from many participants which is yet to be uncovered.

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