Sometimes a concept just doesn’t ‘feel’ right.
There doesn’t seem to be anything beyond the rules about a company I received a flyer from ‘propertycashbuyer.co.uk’ – but that doesn’t mean the rules are right.
Putting leaflets around a relatively poor area of Cardiff offering to help people in problematic financial situations by buying their home from them at a substantially reduced price may be (at least in my opinion) immoral, but it is not illegal.
The company says that it can give people a cash offer from their property within twenty four hours, with an aim to have completed the sale within twenty eight days. They make no claim to be able to offer the best value, stating that they will offer up to 75% of the market price. They also offer a service whereby the owner can become a tenant.
I suppose what concerns me above anything is their website. It’s a bit…..well….crap. A company operating on this basis must have a considerable amount of capital behind it. So surely they can afford a better website? I don’t just mean I don’t like it from a design point of view, but the amount of information it contains is minimal.
And this is what I see as the problem. Deciding to sell your home for less than the market price to avoid repossession and then possibly becoming a tenant is a big decision that should never be taken lightly. No-one should ever consider such a step without having spoken to free housing and financial advice services such as those provided by Shelter Cymru or the Citizens Advice Bureau. To claim, as they do on their website, that they “can give you the best possible solution to your needs” is not something they should be allowed to do, at least not without the caveat of “this is a big decision, think carefully and seek independent advice”.
Don’t get me wrong, there is nothing to say that this company would not do this over the phone, but seeing as it is aimed at people who want to complete as quickly as possible, there is little room for thinking time.
To go from an owner to a tenant is a big step. The company must be up-front about what conditions there will be on the tenancy. Does it expire after six months? Does the company have the power to evict you and sell your property anyway at the end of the tenancy? Or can you keep living there for as long as you see fit?
What any company offering these services should be doing, is making people aware that it is an option for them. But they must be honest, it isn’t the only option. It should only ever be a last resort. When there is a Government Mortgage Rescue Scheme in operation, you would hope it wasn’t a resort that had to be used often.
Is the whole existence of this company a signal of the failure of the Plaid/Labour Government?
Maybe.
Can Property Cash Buyer really help people facing repossession or other financial problems?
Maybe.
Is this the only option available to some people? No.
There are services out there to help people, but these are the services that cannot afford to make people aware of them. Until they have that ability, companies like this one will be the ones who can make themselves heard first.
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Not only is the website illegal in my opinion – it does not cntain information on the company’s registration with Companies’ House, but also in my understanding from reading the FSA registration requirements for a similar but much fairer solution, anyone offering what is called a “house reversion scheme” (sale and rent/lease back, with or without a future buy back possibility) has to be FSA approved and there is certainly no mention of such credentials on their website.