Ruined Property Tycoon Goes on Hunger Strike

Gwendo40

Perhaps some of this poor chaps fellow property tycoons on here could start up a Crowdfunding page for him or something?

Personally, I'd quite like to go and sit opposite him wherever he's staging his hunger strike and eat a nice cheeseburger.

https://www.dailymail.co.uk/news/article-6791199/Ruined-property-tycoon-63-goes-hunger-strike-against-bank-10million-mis-sold-loan.html

Hasbeen

Gwendo40 wrote: »

Perhaps some of this poor chaps fellow property tycoons on here could start up a Crowdfunding page for him or something?

Personally, I'd quite like to go and sit opposite him wherever he's staging his hunger strike and eat a nice cheeseburger.

https://www.dailymail.co.uk/news/article-6791199/Ruined-property-tycoon-63-goes-hunger-strike-against-bank-10million-mis-sold-loan.html

Goodluck. If every business that went bust because of the banks did this then you would need a lot of cheeseburgers:rotfl:

Thrugelmir

No other bank would refinance the debt. Suggests that the business had no exit route nor sustainability.

lisyloo

I’m not sympathetic.
Sophisticed investors have a duty to do their own due diligence.
If he secured loans on his own home that was a choice.
Difficult to understand what somoeone did wrong to make a property empire faile in recent times.

Cakeguts

How on earth can you get mis sold £10 million in loans? I am assuming that he didn't get the loan and then look for 150 houses to buy with it?



If the houses were all good investments when sold they should have repaid the loan surely. So much of this doesn't make sense.

emilysexton89

You know you are in trouble when the bank sells your debt to a vulture American debt recovery firm with the same name as a three headed "Hound of Hades" dog from ancient Greece.

The-Joker

His health will improve no end

Fasting is very god for you

Thrugelmir

emilysexton89 wrote: »

You know you are in trouble when the bank sells your debt to a vulture American debt recovery firm with the same name as a three headed "Hound of Hades" dog from ancient Greece.

Unlikely that such a decision was made at short notice. Winding down an operation takes time. Clients would have had more than adequate notice to make alternative arrangements. Or come to an agreeable solution such as realising the portfolio in an orderly fashion.

PasturesNew

While I appreciate that he might've got to the point where nobody would lend .... if he'd said "Enough, stop, consolidate" when he had "enough properties" ... he'd have survived. I bet he relied on prices going up, then using the fake equity as deposit on the next loan.

He "owned" 150 properties.

150 ....

50, or 100, would've been "enough".... then stop and wait 5-10 years while they made themselves "safe".

If each one gives you £100 profit/month, that's £5-10k/month for doing Sweet Fanny Adams. Is that not enough?

James_Green_1982

Am I correct that any mortgage lender has the right to ''call in'' any mortgage loan at any time?
ie the bank can just ask you to pay off all your mortgage tomorrow (or maybe 30 days etc) and if not re-possess your house. Despite the fact that mortgage has 20 years left to 'run' etc?

I understood this rule was in place as some kind of 'safeguard' for mortgage lenders - but is hardly ever used.

phillw

Cakeguts wrote: »

How on earth can you get mis sold £10 million in loans?

There is more information in the mirror article from a couple of days ago, which makes me feel a little more sorry for him (could the daily mail possibly be biased???)

John’s problems began when a Westminster Treasury Committee Report found the type of loans Clydesdale Bank had given to him had been mis-sold.

The loans were then transferred to National Australia Bank and sold off to New York-based Cerebrus in 2014.

In 2015, John’s businesses were put into receivership by Promontoria Chestnut, a debt collecting agency linked to Cerebrus.

He blames the Clydesdale banks for his current woes The properties were sold off for £8million – half their worth.

John said: “The bank told me Cerebrus was ‘a new lender’. It doesn’t even have a licence to provide financial services.”

He is being aided by CYBG Mediation Support Group, which represents 200 affected businesses.

A spokesman for CYBG, said: “While Mr Guidi’s case is a complex one, we are confident we have investigated it thoroughly.”

Thrugelmir wrote: »

Unlikely that such a decision was made at short notice. Winding down an operation takes time. Clients would have had more than adequate notice to make alternative arrangements. Or come to an agreeable solution such as realising the portfolio in an orderly fashion.

Why bother? If you've bought the debt cheap then closing the company down and selling the properties is going to get you the best return. I'd be especially suspicious of who bought the property...