North East Property Buyers tenants hear fate after Christmas

Dec 24 2009 by Neil Preston, The Journal

“This time last year we thought we had a home for life and now we are just in limbo. It has definitely been one of the worst year’s of my life. I had thought it would all be sorted out by now but it has just dragged on and on. The grandkids keep asking why we haven’t put the tree up but it just doesn’t seem right this year.”

North East Property Buyers and Newcastle Home Loans became the subject of a major fraud probe earlier this year after police were alerted by the Financial Services Authority. Homes and offices connected to the Gateshead-based companies were searched in March.

It is alleged the two firms, which offered people suffering financial difficulties the chance to stay in their own homes by buying the properties and then renting them back to their former owners, defaulted on mortgages.

Tenants living in some of the 2,000 homes in the company’s portfolio have already been evicted after mortgage lenders repossessed properties. And a total of 14 people have now been arrested and questioned by police in connection with the investigation.

The Journal understands these include Grace and David Purdie, of Darras Hall, who are directors of one of the companies, Grace Purdie’s business partner, Michael Foster, of Houghton-le-Spring, and several of their employees and solicitors who worked for the companies.

A judge at Newcastle County Court has agreed to shelve all proceedings connected to the company, and instead just hear a handful of test cases to determine the outcome for all other tenants. This trial is due to take place in July.

Solicitor, Sue Grebby, who is handling the cases said: “It has been agreed that 10 test cases will go to trial. This has given all of the tenants a reprieve until the summer, and it means they can stay in their properties past Christmas.”