Mis sold a student let

ookthelibrarian

Has anyone else purchased a Student Let property investment where you are promised massive interest and growth.
We purchased a number of Student Let's in blocks in the North East. Hight yield  promised and ever increasing value. 
For the first 3 years we did get high return then the charges began rolling in. 
The management company proved inept at best. But at least the units were let.
However when we have looked into selling our units, all purchased at around £65k each the value has dropped to under £40k each.
This is a huge scam across the country, not only in student blocks but in residential blocks as well.
Does anyone know of "no win no fee" solicitor who is willing to take this up on our behalf. There are many of us and the returns should be good.
Added to our woes we were almost scammed by a known fraudster. This has been in the news and on the BBC. but for the hard work of a few of us in exposing him Now I fear we may be being scammed by the landlord.

Tabieth

Im sorry you’ve had a bad time if it. But I’m not entirely sure I understand. What exactly is the scam? I get that they promised guaranteed high yields and ever increasing value haven’t happened, but that falls into the “too good to be true” category. 

user1977

ookthelibrarian said:

Does anyone know of "no win no fee" solicitor who is willing to take this up on our behalf. 

Take it up on what basis? It's not as if there are any consumer rights here, you're a business and deemed capable of doing your due diligence (including seeing through any unrealistic forecasts about future returns etc). Presumably you employed your own solicitors, surveyors etc?

lincroft1710

No one can "guarantee" the value of a property will increase, nor that there will be a constant "high yield". Even the most incompetent NWNF solicitor won't touch this with a bargepole unless they can see a way of screwing money out of you

ReadySteadyPop

ookthelibrarian said:

Has anyone else purchased a Student Let property investment where you are promised massive interest and growth.
We purchased a number of Student Let's in blocks in the North East. Hight yield  promised and ever increasing value. 
For the first 3 years we did get high return then the charges began rolling in. 
The management company proved inept at best. But at least the units were let.
However when we have looked into selling our units, all purchased at around £65k each the value has dropped to under £40k each.
This is a huge scam across the country, not only in student blocks but in residential blocks as well.
Does anyone know of "no win no fee" solicitor who is willing to take this up on our behalf. There are many of us and the returns should be good.
Added to our woes we were almost scammed by a known fraudster. This has been in the news and on the BBC. but for the hard work of a few of us in exposing him Now I fear we may be being scammed by the landlord.

Property investment can be risky, property values go down as well as up, the whole property lending/investment market is based on "your property will increase in value", the management company can`t sell their product so well by saying "your capital could be at risk and you may get back less than you invested" as their main pitch ( you can be sure it is in the small print though and there is no hope of a successful case, unless you can prove they lied about previous returns maybe?)

MeteredOut

If anyone ever promises something, ask for that in writing, ideally in the contract. You'll soon find out the reality of the situation.

I'm not sure many lawyers would agree "the returns should be good" should they take on a no-win-no-fee deal. I suspect very few will think you have a chance of winning, unless the seller was an idiot and somehow did guarantee, in a form you can evidence, a high yield and ever increasing value.

Stubod

..often things that appear too good to be true usually turn out that way....... particularly with financial products as they prey on peoples greed...

theartfullodger

ookthelibrarian said:

Has anyone else purchased a Student Let property investment where you are promised massive interest and growth...

Sorry to read your story.

EXACTLY how were you promised this massive growth?? In writing on companies' letterhead or e.g. in the pub verbally or somehow in a presentation?? Did presentation include a warning overhead pointing out e.g. prices go down as well as up??

How is the organisation that sold this deal to you related to the management company please??

Did either break any terms of their formal agreements with you (what form did agreements take also please)??

Is this your first BTL investment?? Member of any landlord association e.g. nrla? Presumably England?

Done any training in being a landlord please??

What legal action have you taken and against whom or what, please>>

Think this is sadly an example of Proudhon's saying "Property is theft".. see
https://en.wikipedia.org/wiki/Pierre-Joseph_Proudhon

Good luck

Artful: Landlord since 2000

ReadySteadyPop

Stubod said:

..often things that appear too good to be true usually turn out that way....... particularly with financial products as they prey on peoples greed...

"Easy Money" off the backs of students already struggling with fees and student loans was never really going to end well?

eddddy

ookthelibrarian said:

However when we have looked into selling our units, all purchased at around £65k each the value has dropped to under £40k each.

I don't want to sound too negative, but on what basis are you valuing the units at £40k?

If you're really able to sell them for £40k - you've been luckier than some people.


Some people have signed 120 year leases - but then the service charges have got so high, that the units have become uneconomic and unsaleable.

So they are faced with making a loss on their units for the next 120 years, with no way out.

horsewithnoname

Did you look into what you were taking on, or, if you’re honest with yourself, were you just overtaken by greed? It is wrong to mislead people, but that is why you need to check things that sound too good to be true. If you have the promised yield in writing, then you may find a solicitor who would take it on. Do you have legal cover with your house insurance? Maybe talk to them.