Dec/090
Buy to Let Landlords
Former mathematics teachers, Judith and Fergus Wilson are the envy of most buy to let landlords but the hate figures of many a British worker.
Fifteen years ago they were teaching in a South London comprehensive. With a personal wealth estimated at £90million, they even overtook the Beckham’s in The Times 2007Husband and Wives Rich List and own racehorses and a farm in rolling acres thanks to owning 910 two and three-bedroom houses around Ashford and Maidstone in Kent.
Despite being likened to high flying celebrity couples such as the Beckham’s, the Wilson’s are certainly an example of why not to judge a book by it’s cover.
Their home certainly does not look like the stately pile of a millionaire. There is no gold jacuzzi, no personal tanning salon, like Simon Cowell- not even a Rolls-Royce like Del Boy.
The only indication that the owners have a bob or two is a tired-looking Jaguar X-Type parked outside on their gravel drive. Even this is parked next to a battered old Land Rover with wing mirrors attached using sticky tape. It is difficult to believe that this is the home of Judith and Fergus Wilson, proud owners of a million pound Property Empire. In fact, according to Laura Powell at the Daily Mail, their fortune probably peaked at a staggering £250m - although that doesn’t stop property experts labeling them Britain’s first buy-to-let billionaires.
It’s easy to understand how this couple has acquired this fortune as Fergus at least, is surely Del Boy. Fifty years ago, Fergus was already wheeling and dealing. Aged 10, he earned pocket money by pushing wheelbarrows around an Essex building site and as a teenager, he made a bob or two sparring and boxing. He earned £2,000 with a home-made T-shirt printing business when he was a student at Goldsmiths, University of London. Instead of ironing on each of the prints individually, he worked out a way of printing in bulk using a borrowed baker’s oven!
Then, when he married Judith, they rented a four-storey house in Blackheath, South London, and sublet the lower three storeys to other couples at a price that covered the Wilsons’ own rent. ‘I thought that was good business at the time, but I’d never do that now,’ says Fergus. Cheekily, he adds: ‘Now, I’d rent each storey for even more money-I’d live there rent-free and make a profit!’
As humble as this couple may seem with their battered cars and average way of life, they spark a lot of anger amongst those that hear their ‘success’ story.
As the couple now plans to sell off their estate, many people are annoyed at the potential financial reward they could achieve due to their greed and ‘obsession’ with money with comments such as “Greed kept them in the game on the way up but now fear is throwing them out”.
It will be interesting to see how this story unfolds in the upcoming months/ years… we will keep you posted!
Nov/090
Different types of Buy to Let Compensation Claims
Claims against Surveyors
This could be where a valuer has negligently overvalued the property then you may claim the difference between the correct price and the overvalued price at the time of the valuation. Usually a discrepancy of 10% or more will be sufficient to show negligence.
Claims relating to overvaluation or overestimation of rental returns
This has been very common and sometimes estimated rental returns bear no resemblance to the real rents that can be achieved. It is possible to make a claim against a valuer who has prepared the valuation for the mortgage lender rather than you. Valuers have a duty to look at any discounts that have been given as this will often affect the value. For example, if numerous flats have been sold in a block with discounts and the Land Registry is showing the prices paid without discounts it is possible this information will give an inaccurate and inflated picture of the values.
The reasons you or your clients may have a claim are so numerous that is best to give our Solicitor a chance to check the surveyors file.
Claims against Solicitors
This is appropriate when Solicitors have negligently advised on the purchase of the property, including:- 1. Not checking if the property will be used solely for residential, 2. Does what you are buying include all what you believe including car parking spaces etc. 3. etc. 4. etc.
The reasons you or your clients may have a claim are so numerous that is best to give our Solicitor a chance to check the previous solicitors file
Claim Against Developers or their Builders
Several questions arise, what have you bought? is the build acceptable? did you get a guarantee? is the guarantee worth suing on? is the developer worth suing? if they had a separate builder? if the developer is no longer trading? is the builder still trading? Your dissatisfaction needs checking.
You should be aware that any claim against the developer might be hindered if the developer goes out of business. The advantage of a claim against a valuer or a solicitor is that they have insurance.
It is best to give our Solicitors a chance to check all of your papers relating to your purchase and the papers relating to your subsequent problems.
Claim Against a Middleman
It is also possible you might have a claim against various ‘middle men’ including brokers and buying clubs where they have misled you and encouraged you to buy property. Time and time again we hear how buyers are told that they must act quickly as they are buying the ‘last flat’. Often agents will tell the buyer that they are the local experts and that the buyer should leave all the research to them. The buyer then finds that the agent has not told them about local conditions or features which make it difficult to rent out flats or affect the value of the property or rental yields.
It is best to give our Solicitors a chance to check all of your papers relating to your purchase.
Claims against Mortgage Brokers
Are you in a mortgage relationship that is unsuitable for you. Some brokers, certainly not all, placed their own interests above yours.
They may have put you in a “honeytrap” mortgage with a sub prime lender because they made more commission and you eventually lose out twice because not only do you get a dearer deal but when you want more finance you will be discriminated against, a double whammy.
It is best to give our Solicitors a chance to check all of your papers relating to your mortgage.
Jul/091
Estate Agents Pay Buy to Let Landlord Compensation
Large capital-based solicitors, Foxtons, were told by High Court Judge Mr. Justice Mann that many of the charges they imposed on their landlords were unfair. This, after the Office of Fair Trading (OFT) had decided that the charges broke some of the consumer regulations back in 2008. The OFT then asked the High Court to uphold their decision on the basis that the Foxtons small print included clauses which could be considered a “trap”.
The three main clauses that Mr. Justice Mann said were unfair were:
that Foxtons should be paid full commission for selling the property to the tenant, regardless of whether or not it was them who placed the tenant in the property
that Foxtons estate agents could continue to demand “renewal” commission from a landlord if a tenant stayed on past the initial tenancy period whether they were involved in the extended stay or not
that, even when Foxtons had sold a property on behalf of the buy-to-let landlord, they continued to request commission payments from the landlord for the remainder of the agreed period
The Office of Fair Trading, obviously delighted with the decision, exclaimed: “This ruling sends out a clear and unambiguous message that businesses offering services need to ensure unexpected or surprising terms are not hidden away in small print. Contracts need to be written in clear and straightforward language with important provisions, particularly those which may disadvantage consumers as in this case, given prominence and actively brought to people’s attention.”
The complaint made against Foxtons were largely down to a general protest from landlords about the way in which they were being treated by their agents. They recognised that the OFT had powers to act under the 1999 Unfair Terms in Consumer Contract regulations and Foxtons were disciplined.
When ruling, the judge said landlords would be “astonished” to find they had to pay Foxtons commission for the sale of a property, even if the agency had played no part in the deal. It is believed this problem could be a lot more widespread than initially though and could effect hundreds of thousands of buy to let landlords throughout the UK.
If you are reading this and you have any buy to let properties and feel you have been misled or had unfair charges brought to you, you may want to contact Buy to Let Compensation who can help you make a claim.
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