Seeming bargain? £5k to buy a mortage?

mizzbiz

What's the catch? Is this a new selling model i've not come accross before?

http://www.rightmove.co.uk/viewdetails-7993713.rsp?pa_n=1&tr_t=buy

There's loads of them around the north East area, simlar type houses, all started at £16k, now all down to £5k.

Any ideas what this is about?

Is it similar to the 'Rich Dad, Poor dad' idea?

tomstickland

I just phoned them up. £5K to buy a mortgage.
They're sending me the details. Duncan is the man.

mizzbiz

Let me know how you get on and what the details are :-)

hethmar

Can you explain please?

Max_Headroom_3

I've spotted it. Five thousand pounds may seem cheap for a new build, but watch the video very carefully and you'll see why.

If you look closely, you'll see that some of the walls are in fact not painted magnolia. :eek:

No wonder £5K is all they're asking, frankly they'll be lucky to get that.

PasturesNew

It's a failed BTL landlord trying to offload his pricey mortgage on a bigger fool.

tomstickland

Thank you for enquiring about our unique way of buying a property. I have attached a spreadsheet showing the properties for sale.

Advantages to you:

[SIZE=+1]Fixed purchase price for 3 years.
[SIZE=+1]Low deposit mostly less than 5%[/SIZE]
[SIZE=+1]Pay a monthly fee.[/SIZE]
[SIZE=+1]Cash flow positive.[/SIZE]
[SIZE=+0]Any increase in value you get to keep.[/SIZE]
[SIZE=+0][SIZE=+0][SIZE=+0]No expensive arrangement fees.[/SIZE]
[SIZE=+0]No valuation fees.[/SIZE]
[SIZE=+0]No forms to fill in.[/SIZE]
[SIZE=+0]No credit checks.[/SIZE]
[SIZE=+0]Anyone can take advantage providing you have deposit.[/SIZE][/SIZE][/SIZE]

I will call you in a day or two to see how you can take advantage of this fantastic offer.

Best Regards

Duncan Belton
Director

P.S.In some circumstances you can move into one of these properties yourself. Please call for further details.[/SIZE]

http://www.snailhomes.co.uk/

From the spreadsheet it looks like you pay a deposit and then make monthly payments to cover the mortgage, but the claimed rental income is higher than that.
The purchase price is much higher than the deposit.

Max_Headroom_3

I still don't get it, no credit checks so it's obviously not a mortgage, so who does the property belong to?

Are you basically buying the right to pay someone elses mortgage for them?

What advantage is there in it for you? it says you get to keep any future property gains, well that's hardly an incentive at the moment. And if you don't own the place, how do you know you'd get that money even if it were to go up?

If the rental income is higher than your payment why don't they just use that as the income, why would they prefer to get a lower income from you?

Don't get this at all, can anyone explain it to me?

Ian_Griffiths_Halifax

Is it something like Share Options?

amcluesent

IMHO to be filed along with the Nigerian 419 'opportunities'

tomstickland

Max_Headroom wrote: »

Are you basically buying the right to pay someone elses mortgage for them?

I think so. It looks very odd to me.