There are many landlords who were tempted buy the projected profits of buying off-plan property investments during the 'boom years'. Either as a way of making a quick buck by 'flipping' the property on following practical completion or as a discounted long term property investment to hold.
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The promise of a solid long-term profits and an instant capital gain drew in many investors including sports stars and those from the world of entertainment.
An example of this type of development is the £11m residential scheme in a development called Stella Nova in Bootle, Merseyside. Investors in the residential scheme are thought to include Joe Calzaghe along with four Premier League footballers.
Reports in Property Week indicate that some investors are looking to pull out from the purchase of the £100,000 properties on the basis that they can not raise the necessary buy-to-let mortgage or that the 'discounted' price they paid is less than the current open market value.
However, many buy-to-let investors who put down a deposit and thought they could just walk away from the development and loose only their deposit may have an unpleasant surprise according to latest reports in the Financial Times. Thousands of buy-to-let investors are facing the prospect of being persued by Developers determined to make these potential landlords complete their purchase.
Jeremy Raj, head of residential property at Wedlake Bell, the law firm comments:
"The buyers are legally obliged to complete on the transaction."
It looks like for many buy-to-let investors including Joe Calzaghe, there may be no
way of fighting their way out of this corner, however much they duck and weave.
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