BMV Warning - Look after your Tenants !!
Mar
12
Written by:
3/12/2010 2:25 PM
If you have purchased a property BMV (Below Market Value) or Sell and Rent Back then you really have to make sure that the person from whom you purchased the property from does not go bankrupt!!
Here is an extract of an e-mail that I recently received:-
"........12 properties have what's called a Tomlin Order over them. This is because some tenants of mine whom I provided a sell and rent back solution to, went bankrupt and left me with having to agree to paying their debt + legal costs totalling £62,000. This was a Transaction Under Value so the law says I'm liable to pay their debt, and even though I tried to fight it legally I had no chance at all."
Another expample of what happens if an SRB tenant goes bankrupt is here Singing Pig forum.
So if you are this type of landlord, then you really have to look after your tenants!! There are other solutions that will give you and your tenant greater protection.
Johnny Debt
07870 252921