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Wilsons - The buy-to-let gurus' empire crumbles
brit1234
Posts: 5,385 Forumite
The buy-to-let gurus' empire crumble
By Richard Dyson
Last updated at 9:58 PM on 13th February 2010
They were the undisputed king and queen of buy-to-let whose property empire, at the peak of the market, was worth almost a quarter of a billion pounds. Thanks to their smart property speculating, Judith and Fergus Wilson had an estimated personal wealth of almost £100 million. And the two former maths teachers have been in constant demand to impart advice to other would-be housing tycoons, with regular appearances in the Press and on TV.
Now it seems that the Wilsons - who still own 700 properties clustered around Ashford and Maidstone in Kent - got their sums wrong. :eek:
And worse, as the cracks in their property empire start to widen, a number of tenants are emerging with claims they have been mistreated by the Wilsons. Saying they had been too afraid to come forward before, tenants now complain they have been ignored when they ask for vital repairs to heating or plumbing.
Fergus Wilson, 62, has even been dubbed the 'van Hoogstraten of Kent', after the notorious landlord Nicholas van Hoogstraten, who built a huge portfolio of properties in Brighton and Hove, East Sussex.Such a comparison is at odds with the image that Fergus and Judith, 59, present in interviews and photographs. He appears affable and approachable. And nothing could be further from the stereotype of a grasping Rachman-type landlord than Judith, with her charming smile and mumsy clothes.
Whispers of trouble began last September when the Wilsons announced that they were selling their properties so they could retire. Getting shot of the entire portfolio at once would be more convenient for all concerned, including tenants, it was argued.
Despite the publicity surrounding their decision to sell they have not found a buyer. And, although they deny it, their problems look acute.
Financial Mail has learnt that at least one property has been put into receivership by a major lender. The couple also face action from a number of local authorities that are owed council tax on un-let houses. Last week, from their modest-looking home in Boughton Monchelsea, near Maidstone, Fergus Wilson insisted there were no cash-flow problems. He knew about a property being taken into receivership, he said, but blamed an 'administrative error' by the lender, Bank of Ireland.
And Kent's local authorities were also wrong in their demands, he said, claiming that the common name of Wilson meant 'we get mail for every Wilson in the county'.
Both the Bank of Ireland and Ashford Borough Council, where most properties are situated, said data protection rules meant they could not comment. But tellingly, Wilson told Financial Mail the properties were being clustered together in 'management arrangements', formed with the agreement of lenders, or even managed by lenders. Some of these deals were being finalised last week. :rotfl:
Wilson insists these arrangements are being entered into ' voluntarily' and 'with no compulsion' from lenders. He says that only 15 per cent of the properties do not yield enough rent to cover their mortgage bills. 'We have looked at the most sensible way forward,' he said.
'We have spoken to all our lenders, and we have decided to enter management agreements. It is the only way for us to be able to retire. I don't want to be rung up every day by someone complaining about a dripping tap.'
Wilson denies that properties have not been looked after or maintained. He said: 'We don't get many complaints from tenants.'
His version of events may not give the whole picture. It is likely that lenders have 'encouraged' the couple towards a solution that avoids repossession or wholesale receivership.
'How else would you manage a situation where two out of three homes in an estate were repossessed?’ asked one lettings agent. This view is supported by the fact that at least one lender - the failed Bradford & Bingley, now supported by taxpayers - has renegotiated the Wilsons' mortgage terms.
In April 2009, B&B, to whom the couple paid a staggering £350,000 in monthly mortgage interest, allowed them to swap a fixed mortgage rate of 5.24 per cent, maturing in 2012, for a variable rate of 2.25 per cent. Ordinary borrowers in difficulty could only dream of similar assistance.
Such action is 'unheard of', according to Lee Grandin, a mortgage broker for landlords and an authority on mortgage lending to the private rented sector. 'If there is no problem with cash flow, it is hard to see why landlords would want to enter into management arrangements,' he says.
'In cases like this, you would expect lenders to want to work closely with landlords, as it would be difficult to shift so many properties in a small area.'
So how will the new arrangements affect the Wilsons' net worth? It is hard to say, but Fergus claims he and Judith 'will have more taxable income this year than ever before'.
So Fergus may yet be able to afford expensive hobbies, which include owning racehorses and which, he has said, may in future involve running a stud or breeding cattle.
Last updated at 9:58 PM on 13th February 2010
They were the undisputed king and queen of buy-to-let whose property empire, at the peak of the market, was worth almost a quarter of a billion pounds. Thanks to their smart property speculating, Judith and Fergus Wilson had an estimated personal wealth of almost £100 million. And the two former maths teachers have been in constant demand to impart advice to other would-be housing tycoons, with regular appearances in the Press and on TV.
Now it seems that the Wilsons - who still own 700 properties clustered around Ashford and Maidstone in Kent - got their sums wrong. :eek:
And worse, as the cracks in their property empire start to widen, a number of tenants are emerging with claims they have been mistreated by the Wilsons. Saying they had been too afraid to come forward before, tenants now complain they have been ignored when they ask for vital repairs to heating or plumbing.
Fergus Wilson, 62, has even been dubbed the 'van Hoogstraten of Kent', after the notorious landlord Nicholas van Hoogstraten, who built a huge portfolio of properties in Brighton and Hove, East Sussex.Such a comparison is at odds with the image that Fergus and Judith, 59, present in interviews and photographs. He appears affable and approachable. And nothing could be further from the stereotype of a grasping Rachman-type landlord than Judith, with her charming smile and mumsy clothes.
Whispers of trouble began last September when the Wilsons announced that they were selling their properties so they could retire. Getting shot of the entire portfolio at once would be more convenient for all concerned, including tenants, it was argued.
Despite the publicity surrounding their decision to sell they have not found a buyer. And, although they deny it, their problems look acute.
Financial Mail has learnt that at least one property has been put into receivership by a major lender. The couple also face action from a number of local authorities that are owed council tax on un-let houses. Last week, from their modest-looking home in Boughton Monchelsea, near Maidstone, Fergus Wilson insisted there were no cash-flow problems. He knew about a property being taken into receivership, he said, but blamed an 'administrative error' by the lender, Bank of Ireland.
And Kent's local authorities were also wrong in their demands, he said, claiming that the common name of Wilson meant 'we get mail for every Wilson in the county'.
Both the Bank of Ireland and Ashford Borough Council, where most properties are situated, said data protection rules meant they could not comment. But tellingly, Wilson told Financial Mail the properties were being clustered together in 'management arrangements', formed with the agreement of lenders, or even managed by lenders. Some of these deals were being finalised last week. :rotfl:
Wilson insists these arrangements are being entered into ' voluntarily' and 'with no compulsion' from lenders. He says that only 15 per cent of the properties do not yield enough rent to cover their mortgage bills. 'We have looked at the most sensible way forward,' he said.
'We have spoken to all our lenders, and we have decided to enter management agreements. It is the only way for us to be able to retire. I don't want to be rung up every day by someone complaining about a dripping tap.'
Wilson denies that properties have not been looked after or maintained. He said: 'We don't get many complaints from tenants.'
His version of events may not give the whole picture. It is likely that lenders have 'encouraged' the couple towards a solution that avoids repossession or wholesale receivership.
'How else would you manage a situation where two out of three homes in an estate were repossessed?’ asked one lettings agent. This view is supported by the fact that at least one lender - the failed Bradford & Bingley, now supported by taxpayers - has renegotiated the Wilsons' mortgage terms.
In April 2009, B&B, to whom the couple paid a staggering £350,000 in monthly mortgage interest, allowed them to swap a fixed mortgage rate of 5.24 per cent, maturing in 2012, for a variable rate of 2.25 per cent. Ordinary borrowers in difficulty could only dream of similar assistance.
Such action is 'unheard of', according to Lee Grandin, a mortgage broker for landlords and an authority on mortgage lending to the private rented sector. 'If there is no problem with cash flow, it is hard to see why landlords would want to enter into management arrangements,' he says.
'In cases like this, you would expect lenders to want to work closely with landlords, as it would be difficult to shift so many properties in a small area.'
So how will the new arrangements affect the Wilsons' net worth? It is hard to say, but Fergus claims he and Judith 'will have more taxable income this year than ever before'.
So Fergus may yet be able to afford expensive hobbies, which include owning racehorses and which, he has said, may in future involve running a stud or breeding cattle.
:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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It is likely that lenders have 'encouraged' the couple towards a solution that avoids repossession or wholesale receivership.'How else would you manage a situation where two out of three homes in an estate were repossessed?’ asked one lettings agent. This view is supported by the fact that at least one lender - the failed Bradford & Bingley, now supported by taxpayers - has renegotiated the Wilsons' mortgage terms.In April 2009, B&B, to whom the couple paid a staggering £350,000 in monthly mortgage interest, allowed them to swap a fixed mortgage rate of 5.24 per cent, maturing in 2012, for a variable rate of 2.25 per cent. Ordinary borrowers in difficulty could only dream of similar assistance.Such action is 'unheard of', according to Lee Grandin, a mortgage broker for landlords and an authority on mortgage lending to the private rented sector. 'If there is no problem with cash flow, it is hard to see why landlords would want to enter into management arrangements,' he says.'In cases like this, you would expect lenders to want to work closely with landlords, as it would be difficult to shift so many properties in a small area.'So how will the new arrangements affect the Wilsons' net worth? It is hard to say, but Fergus claims he and Judith 'will have more taxable income this year than ever before'.So Fergus may yet be able to afford expensive hobbies, which include owning racehorses and which, he has said, may in future involve running a stud or breeding cattle.:j:j:j:j
:rotfl: :rotfl: :rotfl: :rotfl:
The Wilsons...... "too big to fail".
This is going to drive the bears absolutely mental!
Banks cutting their interest rates in half to prevent them failing!!!!!!!!!!!
Absolutely Priceless.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It seems one by one the big buy to let landlords are going down.
Hopefully the area will be flooded with cheap property for ftb as they get repossessed. :j:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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Hopefully the area will be flooded with cheap property for ftb as they get repossessed. :j
You didn't bother reading your own article, did you......:D
Their banks have cut a deal to avoid reposession.;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Deleted that as I was wrong!0
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The poster boy and girl for a generation of BTL wannabees. Take a good look. And be thankful for what you have.0
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Graham_Devon wrote: »The Wilsons are on fixed rate mortgages.
Not any more......In April 2009, B&B, to whom the couple paid a staggering £350,000 in monthly mortgage interest, allowed them to swap a fixed mortgage rate of 5.24 per cent, maturing in 2012, for a variable rate of 2.25 per cent. Ordinary borrowers in difficulty could only dream of similar assistance.
Graham, top tip.....:money:
Debate is always more satisfying when you bother to read the article.;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Nice idea.They'll probably declare themselves bankrupt and then get a multi-million pound book deal. It seems to be the way these things work.
"I Am A Guru" by F. Wilson
Day 1 - bought some houses.
Day 2 - borrowed and bought some more.
Day 3 - borrowed and bought some more.
...
Day 1298 - borrowed and bought some more.
Told newspapers I was rich. They believed it - lol.
Day 1299 - have run out of Rich Tea biscuits. Judith says we don't have the immediate cash available for another packet. Bother.
Epilogue.
Dear Reader, if you want to know how the story ends, please subscribe to my new magazine - the Wilsons and Why they are so Great - available via online susbcription only.0 -
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Or this, Chav tastic number:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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boomerangs wrote: »Nobody with money would buy clobber like this. So they must be skint. :rotfl:
No.. his gear is expensive from a few sources I've read in the past. We might dislike the cut and style of it, but doesn't mean it comes cheap.
http://www.dailymail.co.uk/news/article-431224/How-maths-teachers-clocked-707-houses-240m-fortune.htmlIn his brick-red blazer and candy-striped shirt - custom-made by Turnbull & Asser for his 22in neck - former rugby prop-forward Fergus Wilson is a ruddy-cheeked, refrigerator-proportioned figure, with a blustering manner and a booming voice.0
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