Musings of a London Property Search Agent

Oh the joy of the British legal system!  While on the one hand everyone I know is rejoicing at the judgement published on Friday, ruling that certain terms in Foxtons terms and conditions are unfair, the ensuing press coverage over the weekend implies that arguments over what does and what doesn’t constitute an unfair contract term for the lettings industry, will run and run.

Many consumer landlords have been stung over the years over the following terms in the Foxtons contract:

• requiring landlords to pay further commission after the initial one year period where the tenant stays in the property even if Foxtons have had nothing to do with persuading tenants to stay;
• requiring landlords to pay further commission even if the landlord has sold the property;
• claiming a full estate agents commission if the tenant decides to buy the property. 

The problem is that the Foxtons contract for both sales and lettings is a one page document with the terms and conditions written in tiny print, which the average consumer wouldn’t bother to read.  Looking at the judgement closely, the Judge, Mr Justice Mann makes clear that he wasn’t asked to judge whether renewal clauses of this type are always unfair.  He seems to imply that as long as letting agents have their terms and conditions in a reasonable typeface, they can carry on charging what they like.

Foxtons lost this case because the charges weren’t clear, the charges were excessive and a potential landlord would be ‘astonished’ about the size of the commission due.

ARLA, the Association of Residential Lettings Agents immediately issued a press release on Friday, clarifying that the judgement in no way opens its members to issuing refunds in light of the judgement.

If you would like a property manager who will ensure you are not tied into ridiculous contracts and who will manage your buy-to-let portfolio in a very cost effective way then try Diana Machin of Personal Property Management on 020 7607 1712.

If you want a good buy-to-let which should hold it’s value or appreciate, call us, arguably the best Buy-to-let Property Search Agents in London and Brighton and we may even find you a tenant for free!

Technorati Tags: ARLA, Foxtons, London Property Search Agents, Mr Justice Mann, OFT vs Foxtons [2009], Unfair Contract Terms

Tags: ARLA, Foxtons, London Property Search Agents, Mr Justice Mann, OFT vs Foxtons [2009], Unfair Contract Terms

Musings of a London Property Finder

In 2008 Foxtons lost approximately half their staff but it wasn’t enough and now BC Partners who bought the infamous estate agents at the height of the property market in June 2007, are seeking a debt for equity deal with lenders.  In a piece in The Guardian newspaper yesterday, the value of the debt to be written off is estimated at £60-£90 million. 

Tellingly Andrew Newingly, BC Partners London head admitted for the first time earlier this year that the firm “had got it wrong”, and that the £370 million purchase of Foxtons had been a mistake.

So for those readers who bought at the top of the market in 2007 just think – it could be worse: you could be down £370 million, not just a few hundred thousand.  And at least you have somewhere to lay your head at night!

And for those of you wishing to dispose discretely of prime London property, or to rent your abode to one of our fabulous tenants, we are the favourite London Property Finders of several discrete top end companies and would be delighted to deal directly with you.

Technorati Tags: Estate Agents, Foxtons, London Property Finder, London property finders, london property news

Tags: Estate Agents, Foxtons, London Property Finder, London property finders, london property news

Musings of a London Property Search Agent

The Telegraph reports that private equity group BC Partners who bought Foxtons from founder Jon Hunt last year for a reputed £390 million, are in discussions with Rothschilds to help restructure debt.  Liam Vaughan writes that the group are looking to refinance over £250 million of debt which is currently costing circa £26 million a year in interest payments alone.

The group are not reportedly looking to shed staff or branches but hoping to cut costs through clever refinancing to improve cash flow to see them though the current difficult trading period.  Anecdotally, however London Property Search Agents like us will know that since a high proportion of staff earnings at Foxtons are commission based, many members of staff have already left.

Technorati Tags: Estate Agents News, Foxtons, london property search, London Property Search Agents

Tags: Estate Agents News, Foxtons, london property search, London Property Search Agents