The Property Foundation

Madhouse_3

Hello Everyone

Has anyone of a company called 'The Property Foundation' ?
http://www.thepropertyfoundation.com/

Apparently all you have to do is put down a £4k deposit on a one of their new build appartments up to the value of £250k, and the property is yours!

Apparently they pay:
- solicitors fees
- the remainder of the 10% of the deposit required (as they have saved this money already by bulk buying new build properties off plan - so they pass this saving onto the customer, and pay the rest of the deposit for the customer)
- all other house buying costs
- arrange the mortgage

So for £4k you can then own a property worth £250k!

I can understand how this can work out if you are getting a buy-to-let mortgage, because no-matter how low your income you could prove to the bank that the rental income would pay the mortgage.

But, for a residential mortgage, if like most people the average income is £30k there is no way any bank in their right mind would lend a customer £225k, which is 7.5 times this annual salary (assuming the 10% deposit has been paid by the $4k from customer and the remaining paid by The Property Foundation).

I don't understand
- how this concept is workable?
- how The Property Foundation make their money
- how a customer on low income can get such a high mortgage approved

This just sounds too good to be true. What's the catch?

I would appreciate if any of you out there have any comments on this company?

Thanks

TTMCMschine

"- the remainder of the 10% of the deposit required (as they have saved this money already by bulk buying new build properties off plan - so they pass this saving onto the customer, and pay the rest of the deposit for the customer)"

or alternatively they inflate the price to look like you're getting a discount.

Madhouse_3

But I don't think they do inflate their house prices.

They work by purchasing new build developments off plan in bulk.

So a potential customer can go along to the development, chat to the developer (who is in no way connected to The Property Foundation) and find out the prices for themselves, which are very similar to the prices quoted by the Property Foundation.

I just don't get how all this can work.

It seems too good to be true.

What's the catch?

Please help. Thanks. Madhouse.

Richard_Webster

How much are similar 5 year old houses in the area? May be there aren't any so nothing to compare with - easy for a builder to sell for a higher figure then. How do you know that the properties really are going to be the source of instant profit? How do you kjnow that they WILL achieve the rents predicted if you go for Buy to Let? Do you know the area?

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.