Darren

Member
Buyer Beware- Habitation License & Mortgage Scam
The scam is apparently attracting an accellerating number of unsuspecting victims and so I have been asked to report it here.

A UK sales agent sells a property to a UK buyer with advance payment terms and a final payment due on completion, with the promise of an easy mortgage for the buyer.

The buyer makes the payments and is refered to a mortgage company who go through what looks like mormal procedures.

At the last minute the mortgage company tells the buyer they failed to get a PRIME mortgage at 4 or 5% and instead can only get a Subprime mortgage at 10-12%.

The seller then threatens the buyer that they will lose their advance payment deposits unless they pay on a contratcted date.

As a result the buyer is compelled into taking the 10-12% Sub Prime mortgage.

IN REALITY THE REASON WHY THE BUYER CPOULD NOT GET A PRIME MORTGAGE AT 4-5% IS BECAUSE THE CONSTRUCTOR CAN NOT GET A HABITATION LICENSE FOR THE PROPERTIES, AND SO ONLY A SUB PRIME MORTGAGE CAN BE USED FOR THE PROPERTIES. BUT THIS IS HIDDEN FROM THE BUYERS- THE BUYERS ARE TOLD SOME OTHER REASON- ALL SORTS OF STORIES.

So the constuctor ends up selling the property without a habitation certificate and getting all his money.

Often thimes the buyer uses a soliciotor referred by the seller or the agent, and this solicitor obtains a power of attorney from the buyer, and signs the buyer onto a SUB Proime mortgage at 12 % without the buers knowledge in advance. Some times the Turkish builder receives this power of attorney from the duped buyer and does the same.

If the Turkish builder, the sales agent, the soliciitor, and the mortgage broker cannot somehow to get the buyer to pay cash using UK finance, or to get signed onto a sub prime mortgage, then they use a different tactic.

They tell the buyer the advance payments are forfeit and trhen they offer the buyers another property on a diufferent completion site that will be ready next year- and usually at a very high £.m2 price.

In most cases the Turkish construction company is selling one property in this way to two or three differnt buyers thoirugh their sales agents. When the money comes in somehow from one of the buyers, they move the other buyers onto plan B and a differnt site. Once we have some feed back on this I will name names.
 

stan

Member
Buyer Beware- Habitation License & Mortgage Scam
Hi
Why has there been no replies or can i just not find as a friend of mine paid 43k deposit with assurance mortgage had been approved but hadn't luckily managed to get the money back from agent with a lot of hassle and lies
 

Ceni

Ceni
Buyer Beware- Habitation License & Mortgage Scam
Is there anything in Turkey to do with property or law that is honest and works how it should or what you have paid for......
 

Tommie

Sun Worshipper
Buyer Beware- Habitation License & Mortgage Scam
Is there anything in Turkey to do with property or law that is honest and works how it should or what you have paid for......


Sorry, but I have forgotten what honesty means..
 
Buyer Beware- Habitation License & Mortgage Scam
May sound daft, we have a villa in Turkey and have a Tapu , but what is a habitation certificate ??????? please help.
 
Buyer Beware- Habitation License & Mortgage Scam
Hi,
A Habitaion Certificate issued by the local council. It allows you to live legally in your property.
Even with the full Tapu, (marked in the right box) you will still need the Hab Cert to have the electric, water, phone,tv channel providers, etc., in your own name.
Use the search box on the top right hand box to acess loads of info on the Hab Cert.

Mary.
 

botchy123

Member
Buyer Beware- Habitation License & Mortgage Scam
At the last minute the mortgage company tells the buyer they failed to get a PRIME mortgage at 4 or 5% and instead can only get a Subprime mortgage at 10-12%.
QUOTE]

I gather the clue is in the capital letters?
 

newhorizon

"Light Years Away"
Buyer Beware- Habitation License & Mortgage Scam
Useful word of caution in Darren's post...surprised it didn't get many responses at the time, anyway better seen late than never!

Sub-prime mortgages is one of the reasons the housing market in the U.K (& U.S) fell so dramatically!

Especially with all the Buy-to-Let self-cert. mortgages brokers were pushing in 2006 onwards..no wonder the market collapsed and the classic no deposit down payment where brokers would increase the purchase price giving a cashback on completion falsifying the Land Registry records making house prices higher than they actually were....!

Be careful wherever you take a mortgage Turkey (with/out Hab. Cert.) or anywhere, ensure the lowest rate and make sure you can comfortably afford the re-payments even if they doubled or stay away.
 

richelm

Member
Buyer Beware- Habitation License & Mortgage Scam
"PRIME" ... LOL ... I like it botchy123!
 
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