However they do not emphasise the even greater peril faced by those who sell their homes at a discount and then expect to be granted a life time tenancy.
In many instances, the former owner is offered a six-month tenancy at a subsidised rate, but at the end of that time the new lease offered is usually at such an extortionate figure that the former owner just cannot afford it and has to vacate the property.
The aim of those who buy these properties from distressed homeowners at a discount is simple – they just want to be able to sell the house on a vacant possession basis and pocket the profit as soon as possible.
The other danger, of course, is that most of these properties are bought with a 100 per cent mortgage based on the discounted price – if the new owner fails to maintain the mortgage payments, the property is likely to be repossessed and the former owner – now the tenant – will be evicted, with little prospect of any assistance from Social Security. From home owner to homeless in just a few short months.
Companies offering these sort of schemes need to be controlled and regulated.
Brian Harris
Inter City Finance Limited
I can easily accept change when it is for the better
