Advice on possible mortgage fraud

Kynthia

There's so many potential issues here and you can't deal with them without knowing more. Is the mortgage a BTL or residential, if residential is there consent to let, is it being paid, who is the landlord named on the AST, is anyone paying tax on the rental income and in who's name, are landlord regulations/laws being complied with like the annual gas safety check, was there a deposit used to buy the property and who supplied it, is there any formal agreement like a Deed of Trust, was your step-son able to get this mortgage with his income or were any falsehoods committed with he information given to the mortgage lender, did your step-son sign anything legal that was untrue, etc?


Is he able to get any documentation and tell you more of what the situation is, as you'll need a lot more info just to get advice on the situation?

FBaby

This is very worrying indeed. If he is the named landlord on the AST (which he should be as he is the owner), then if anything happened as a result of not falling the right rules, then he would be liable. This needs to be sorte asap for his own sake.

Errata

It sounds like it's time his dad needs to step in and get to grips with his son's mother for his son's sake - whom presumable he has some affection for.

Bemzil1

oh don't worry he's very much sorting it . His son will be living with us while we support him to get this mess sorted out x

gazter

neas wrote: »

I'm not sure this is as bad as you make it out though. This is your view (which will most likely be biased because of the whole step mon/step father split business).

WHat we have here is a lad who parent guided him to buy a buy to let property, and whose parent + step parent are managing for him on a day to day basis. in 10 years he will still be on the land registry and mortgage but the house will have appreciated thousands of pounds.

Unless they forced him to gift back the earned cash, he would stll be financially better off.

She takes all money, because they probably gifted him 5-10% of the house value in deposit (he doesn't sound like he has the means to save the deposit).

From my perspective it looks like a well meaned attempt at increasing your stepsons wealth and position for when he is 30 years old and starting a faimily. If all goes well he will have a tidy deposit for his own family house.

You know what I mean? In 10 years when the equity is worth £30k, he could sell it and has got £30k for nothing. Sure it affects his housing benefit but I can't believe its as bad as you are portraying .

Maybe you could help him get a 2nd house and then you would be even with them?

Its worse, he wont get any housing benefit, and his JSA entitlement will be restricted to contributions based, which he clearly will not have met the criteria to be eligible.

You are right that he has an asset which will only enrich him in the years to come. But right now he needs to get back into work.