Tenant getting a mortgage - dodgey??

Pimpslider

Cheers Giggles!

Annie1960

Pimpslider wrote: »

Thanks people. Some interesting and helpful comments here.:T

I did have it independently valued and the £250k was a mid to top value.

The part that confuses me is that the FA is saying I have to sign something prior to anything going ahead saying I pay them £50k on completion. So the tenant's Solicitor is passing over the full £300k, then my Solicitor has to bounce back £50k, like its a bill I have to pay (such as imaginary renovations to the property during their time there). She (the FA) definitely said I had to sign something with them.

You are completely foolish if you are even thinking about going ahead with something like this, especially as you do not understand it and the so-called FA may not even be genuine.

Don't rely on advice from a forum on this. You seem to be saying you could leave yourself open to a bill for £50,000 from a FA. This sounds ridiculous to me.

Please get yourself an experienced conveyancing solicitor and talk to them about it, or you could find you sign something you later regret.

Pimpslider

Thanks Annie. When I was originally explained this by the FA I contacted a mate who is an FA (as I didn't really understand) and he immediately said it sounded like potential Mortgage Fraud. I guess I just needed a 2nd, 3rd, 4th...opinion.

I'd obviously like it to be all above board but I don't want to convince myself it's ok just for the sake of an easy sale. It sounds odd so probably is.

dannim12345

When I was looking for a solicitor for my flat purchase, I came across a solicitor who had done something similar to this - a property was valued higher in order to pay a builder for works (not sure on the exact details).

The reason I know this... She was taken to the Solicitors Disciplinary Tribunal and ordered to pay £9k. Its all over the net if you Google her name so I do not know why any solicitor would want to risk anything like this.

I don't know were your based but its a sellers market at the moment. I don't think you need to start getting into dodgy deals like this for a sale.

Pimpslider

dannim12345 wrote: »

She was taken to the Solicitors Disciplinary Tribunal and ordered to pay £9k. Its all over the net if you Google her name

Can you give some more Googling details please Danni?

dannim12345

I have sent you a PM

Pimpslider

:beer: Super-Cheers Danni...! :beer:

Pimpslider

Well, I've spoken to the FA and she was fine and relaxed about me not wanting to sell it in that way. She added (when I stated I didn't want to sign any additional agreements) that it was the same type of Agreement that I would sign if selling with an Estate Agents ensuring they got their fee at the end.

It does seem to me that the tenants do not have sufficient funds for a deposit so may be borrowing from somewhere and then paying it back straight away when I return some of it.

That said, the Section 21 has already been served so now it's just a waiting game.

mrginge

Pimpslider wrote: »

...She added (when I stated I didn't want to sign any additional agreements) that it was the same type of Agreement that I would sign if selling with an Estate Agents ensuring they got their fee at the end.

Erm not really.....

In fact not in any way, shape or form.

This sounds more like term 'FA' you refer to is actually a description of that person's level of knowledge rather than a description of their job title.

Pimpslider

That's kinda what I thought MrGinge.