Ok- is this a good idea?.......

Cannon_Fodder

Scam, scam, scam!!!!!

G_M

Sound like you're bullishly going to go for it anyway, despite the warnings of respected, well experienced posters on this board

tabskitten wrote: »

THAT IS VERY RUDE

No, not in the least bit rude. He said "sounds like..." based on your responses to "respected, well experienced posters"

You did, indeed, give the impression that you were being somewhat blinkered. Determined to see the potential in this...er...scam... and find ways to convince yourself that the warnings being given you could be counter-argued.

Most people who fall for scams do this. Search the forum for 'scam' and you will find many examples of people who have been drawn into scams, very different from this one, but who had the same responses as you.

Radiantsoul

Is this the same Benjamin Leppier?

http://www.benjaminleppier.com

Both of them live in Bristol. If so not only is he a property expert, but he
- improves your golf
- cures fears of flying
- does a Gok Wan
- helps you lose weight
- and any number of other psychological trickery

Probably a bit of a bullsh1tter...

tabskitten

WOW!!:eek::rotfl:

tabskitten

G_M wrote: »

No, not in the least bit rude. He said "sounds like..." based on your responses to "respected, well experienced posters"

You did, indeed, give the impression that you were being somewhat blinkered. Determined to see the potential in this...er...scam... and find ways to convince yourself that the warnings being given you could be counter-argued.

Most people who fall for scams do this. Search the forum for 'scam' and you will find many examples of people who have been drawn into scams, very different from this one, but who had the same responses as you.

Erm.....i do believe that the majority of my responses were 'thank you very much' and 'have taken this on board' and 'i am going to take heed'....

I have no objection to people trying to help by warning and the majority of the responses i got were just what i wanted- playing devils avocate and questioning........that is why i post on forums- anothers POV is often very enlightening.

In this situation the responses I have had have stopped me making what could have been a drastic mistake made not out of clear thinking but out of short term financial panic........

however, non of the other posters managed to make me sound and feel ignorant, ungrateful and ''bullish''.

ViolaLass

So if they promise to buy the flat once its value equals the amount you owe, what happens if the market doesn't go up enough, are you allowed to sell the flat to someone else?

tabskitten

ViolaLass wrote: »

So if they promise to buy the flat once its value equals the amount you owe, what happens if the market doesn't go up enough, are you allowed to sell the flat to someone else?

i think we are tied to them for 8 years and they guarantee rent for that period, then i think they get first option to buy....

CloudCuckooLand

tabskitten wrote: »

Our proposal
We guarantee to pay your mortgage for 5-8 years whilst the property increases in value.
We pay you £130,000 (£5,000 more than you paid)
We pay the mortgage regardless of whether the property is tenanted.
We pay the management company that maintains the communal areas of the flats.
We take full responsibility for maintaining the property.
We charge you no fee for the management or maintenance of the property.

Previously I had suggested 5-7 years, I have increased this to 5-8 years because of the level of negative equity. Our intention is to buy the property as soon as it has increased in value enough to enable us to finance the purchase.

I read that as "tied in" for 5 years.

It has to increase in value enough to "enable us to finance the purchase".

Not, "until it hits £130k".

So, in 5 or 6 years, should House Price inflation continue as per the last 6 months, the price will roughly double from £95k to £190k, they give you £130k and walk away with the £60k profit you would have had for yourself, if you rode out the painful period.

And who knows what they'll do, such as put a second charge on the property to "protect their interests".

Dodgy, dodgy, dodgy.

tabskitten

CloudCuckooLand wrote: »

I read that as "tied in" for 5 years.

It has to increase in value enough to "enable us to finance the purchase".

Not, "until it hits £130k".

So, in 5 or 6 years, should House Price inflation continue as per the last 6 months, the price will roughly double from £95k to £190k, they give you £130k and walk away with the £60k profit you would have had for yourself, if you rode out the painful period.

And who knows what they'll do, such as put a second charge on the property to "protect their interests".

Dodgy, dodgy, dodgy.

yes- i see that But in a way that put my mind at ease a bit as could see what their motivation is.......
So if i were looking to make much profit it would be a no go,
but at the moment i would sell immediately if i could break even just to rid myself of the stress........so am not too concerned with profit if it means I get rid of this black cloud over my head which to me being a LL in this recession is.....

Not saying i think it is anything but dodgy- just explaining the attraction to me.......

CloudCuckooLand

Except you are responsible to the Lender if they fail to live up to their promises.

Not them. Your credit record will be shot, before you can find whichever stone they've hidden under.

Just go and see a regular Letting Agent, and see what they think of putting your property on their books. If they cannot match guaranteeing the rent, at the level you need to meet the mortgage, then you know these people are bullsh_tters.