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About sharing image captionExperts warn that unregulated residential lease option contracts could become a "major scandal" With house repossessions predicted to rise over the next year, financial experts are warning financially vulnerable homeowners to be cautious of risky lease option agreements which could put their property in jeopardy.
Mr Angliss and his wife Trudy have fallen victim to the rapidly growing business of residential lease option contracts, which experts are warning could lead many other homeowners into financial difficulties. The couple had simply outgrown their two bedroom terrace in the East Mt4 indicators for binary options and, as they planned to have a fourth child, were desperate to move to a larger place.
Missed mortgage payments Their house had been up for sale on-and-off for five years, but with the market stagnant, like many would-be sellers, they were trapped.
The company promised to pay the Angliss's mortgage and maintain the property while renting it out to new tenants. The couple, option deals this had no financial problems, were not looking to profit from the move. They just wanted to make a fresh start in a larger house, in a better area.
Mr Angliss, an NHS administrator, and Mrs Angliss, a medical student, realised something was going wrong six months after moving out. Nor could they simply move back to their old house because the tenants signed by Phil Martin - who were not paying rent - were still living in the property. In theory, investors take over the running of a homeowner's property and pay the mortgage for a specified period.
When this period is up, the lease company has the option of buying the property and selling at a profit - if house prices have risen - or return it to the original owner if house prices have gone down. The problem is, there is virtually no legislation in this area, thus opening the way for unregulated investors who cannot always deliver on their promises.
Mr Martin did not respond to the BBC's request for an interview. Ray Boulger of mortgage brokers, John Charcol, says: "There is a serious risk of lease options becoming a major scandal if potential vendors are not warned about the major risks involved. Although lease option deals are common in the commercial property market they have not, until recently, been seen in the residential sector. Now though, there is a burgeoning option deals this in seminars and workshops organised by self-proclaimed "property gurus" who are attracting investors with the prospect of rich-pickings from distressed homeowners.
Property expert and TV presenter, Kirstie Allsopp, says she is horrified that this kind of deal is being applied to residential properties. Their advice has come too late for Martin Angliss who hopes others will learn from his fate. Email the programme: goldberg bbc.