Some buy-to-let investors "preyed upon"

Posted: 12 Oct 2009 12:28:49 GMT

A number of buy-to-let investors were "preyed upon" by some property groups between 2005 and 2007, according to the editor of Property Investor News magazine.

Richard Bowser claimed that during the peak time of the property investment boom, some of those who put their money into bricks and mortar were taken advantage of by "mainly now defunct property groups".

"We are hearing quite a lot from various legal firms about the difficulties [of] a lot of investors - particularly the more naive, amateur investors," he explained.

Mr Bowser's comments come after the BBC aired an interview with Jeremy Raj from law firm Wedlake Bell on Friday October 9th, where it was suggested that some buy-to-let investors are not aware they are legally obliged to buy property when contracts have been exchanged.

He stated that many investors think they can withdraw from a purchase after signing contracts and just risk their deposits - but this is not the case.


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