Buy to let Fraud (British subprime) - More collapse

brit1234

MORRIS PROPERTIES

Greedy buy to let investors who bought homes from MORRIS PROPERTIES are going bankrupt after buying well overvalued properties. Now Simon Morris the director has been arrested for fraud. The repossessed homes are being sold at the fraction of the price bought.

Last year the Treasury select company were told by bankers that their books were full of mass buy to let fraud and mortgage miss payments were fastest rising out of all mortgages.

Investors in Leeds were buying £250,000 flats off Morris. Thats well over 10 times local wages. Now who is to blame, Morris for selling at this price or the investors who bought at this price?

Below is an updated program on the demise of Morris Properties, the fraud and the investors who have lost everything

http://www.bbc.co.uk/iplayer/episode/b00hlfr9/Inside_Out_Yorkshire_and_Lincolnshire_11_02_2009/

Asheron

I love how the BBC white-wash.

Walletwatch

Well, anybody who does not do his or her research before making a big-ticket purchase or investment can only have himself (or herself) to blame. As the woman in the interview rightly points out, she thought that the rental yield guarantee was actually credible, but in hindsight, it was not. What I fail to understand is how can one in the first place, leverage oneself to such an extent to make a high-ticket investment in this kind of property, and if it does have to be done, why does someone not do some basic research on what they are getting into?

brit1234

This is just one of these companies, there are hundreds such as Inside track and the Ajay Ahluga ones.

I'm glad banks now require the likes of rent at 125% of the mortgage costs. The sums, just never really added up the last 3-4 years. People just said it didn't matter it was all about the capital growth, which now is massively negative as prices have fallen to 2004 levels already.

amcluesent

> Simon Morris the director has been arrested for fraud<

He's obviously a well dodgy geezer. Eyes are so close together! Caveat emptor(*)

(*) For those who went to comprehensive schools, that means "buyer beware".

RomansProperties

http://www.rightmove.co.uk/property-for-sale/property-20121724.html
This is one of the properties bought by his investors.
Its been on the market for months at this price.
It was Purchased by Morris properties for £50k and sold on for £180k
Now its back for £59k and no interest

mizzbiz

I just think that if the prices on offer didn't seem reasonable or even logical to me, then everyone who bought in had the chance to assess the "deals" on merit. £250k for an ugly, badly built box-room is not my idea of a bargain. And in the real world, people should have realised that if young professionals have a grand a month upwards in their back pockets for living costs, then they could afford their own mortgage anyway, or at least a nice, three bedroom house in the country with change to spare.

Most of these new builds were built in former slums as part of inner city regeneration packages. Who in their right mind, with enough to pay the rent there, would actually rent one. I still CANNOT undertsand what on earth people were thinking when they signed up for this. It's lilke someone telling me that if I buy a Skoda with Mercedes badges stuck on it that someone will pay me Mercedes prices to buy it off me.

abaxas

For sale..

Skoda Octavia taxi £300,000 with £600pm fare guarantee.

Any takers?

IveSeenTheLight

brit1234 wrote: »

This is just one of these companies, there are hundreds such as Inside track and the Ajay Ahluga ones.

I'm glad banks now require the likes of rent at 125% of the mortgage costs. The sums, just never really added up the last 3-4 years. People just said it didn't matter it was all about the capital growth, which now is massively negative as prices have fallen to 2004 levels already.

Yawn

Yet again a splurg of cliche, stereotyping and UK average splurting which is not the case for all.

The sums, just never really added up the last 3-4 years. People just said it didn't matter it was all about the capital growth

I bought a BTL in 2007, have never considered capital growth as part of my calculation, in fact, I still make a nice healthy profit if the property does not gain in capital appreciation (which I do believe will happen in the long term)

I'm glad banks now require the likes of rent at 125% of the mortgage costs.

When I bought in 2007, it was a requirement then for rent of 125% of the mortgage costs

which now is massively negative as prices have fallen to 2004 levels already

Your reference to UK averages means absolutely nothing when looking at specific properties.
I could show proof that some areas are still at 2007 levels

churchrat

IveSeenTheLight wrote: »

Your reference to UK averages means absolutely nothing when looking at specific properties.
I could show proof that some areas are still at 2007 levels

where are they??? I would like to sell cos we want to move when ds2 leaves school---would be great to think we are in one of your "2007" price places
thankyou
(these places do exist?? dont they??)

PasturesNew

RomansProperties wrote: »

http://www.rightmove.co.uk/property-for-sale/property-20121724.html
This is one of the properties bought by his investors.
Its been on the market for months at this price.
It was Purchased by Morris properties for £50k and sold on for £180k
Now its back for £59k and no interest

Oh dear
http://www.houseprices.co.uk/e.php?q=8+Oban+Terrace%2C+Leeds&n=100