Property Post International article written By Safaraz Ali

Have you claimed your endowment compensation?

TIME is running out to claim compensation if you were mis-sold a mortgage, states Sajid Hussain, of Birmingham based Endowment Claims UK in an exclusive interview with the Property Post International.

Millions of mortgage borrowers face shortfalls on their home loans at maturity if they miss the looming deadlines for seeking redress. Mostly all the endowment companies have introduced deadlines after which mis-selling complaints will be outlawed.

Nationwide Building Society became the latest major institution to come clean over endowments when it recently admitted that policyholders who bought contracts via their branches are being timebarred.
Along with Legal & General and the Prudential it had consistently pledged not to impose timebars. Recently L&G reconsidered its position and has decided to begin outlawing complaints from September.

Elsewhere, Friends Provident and the companies acquired by Resolution Life, including Britannic Assurance, Royal & Sun Alliance, Alba Life and Swiss Life began timebarring as long ago as 2003. Guardian began to introduce timebars in 2004.

However, the big tidal wave of timebars, which is expected to trigger an enormous surge of complaints via endowment specialist companies such as Endowment Complaints UK begins this May, when the first Standard Life deadlines loom, followed rapidly by timebars at Norwich Union and Legal & General.

Some 155,000 Norwich Union customers, 13% of mortgage endowment holders, will lose the right to claim compensation this year, with 55,000 (just over half) of CIS similarly outlawed by the end of the year.

But the biggest group of time-barred customers will be the 428,000 Standard Life policyholders who will lose the right to complain by December 31.

Almost all companies give six months notice of their intention to timebar complaints three years after the customer is sent a so-called red letter, notifying them of the possibility of a serious shortfall.

Companies facing the largest number of customers with shortfalls include Standard Life, Friends Provident, Abbey National Life, and Alba Life where nine out of 10 contracts are facing big shortfalls.

The clock's ticking: there is a deadline on endowment mis-selling complaints

The issue of time-barring is controversial. Endowment Complaints UK argue the time limits are "grossly unfair" on policyholders and that widespread consumer ignorance could leave millions missing out.

Sajid Hussain is concerned that homebuyers will not understand the implications of warning letters, and will miss the chance for ever to make good their mortgage shortfalls. "Companies are not being fair to customers and in many cases are giving very misleading information."
"Consumers are losing valuable rights to claim compensation on the basis of letters which are legally unsafe," Sajid says. "In any other situation, if someone is losing a legal right to claim compensation then that notice must be served on them in person. All these institutions have to be able to prove is that the letters were posted."

The Financial Services Authority has laid down rigid guidelines which require firms to ensure that policyholders must receive a warning at least six months before the date of the time-bar, and that the warnings are clear and prominent. A number of firms have already been fined following their mishandling of endowment customers.

Sajid Hussain of Endowment Complaints UK, says: "The FSA wants companies to resolve any disputes as quickly as possible. This is where Endowment Complaints can make the whole process of complaining easy, stress free and in the best interest of the customers."

Endowment complaints UK can assist in cases where even the endowmnt has been surrendered or is no longer being used for mortgage purposes. They can in many cases assist in obtaining up to 35% more than the surrender value offered by the endowment provider.

How to complain Endowment Compensation UK are a based specialist Financial Services Claims Company who have claimed more than £650,000 worth of compensation for their clients on an No Win No Fee Basis and they can be contacted on 0121 523 9699 7 days a week 9.00am to 9.00pm.

10 Things You Must Ask Before Buying Your Overseas Property-

Considering a property purchase overseas?

A quick quide for you to read before you sign or commit to anything- Please make sure you have confirmed:

1) Who actually owns the property. Please, please don't take for granted that the person trying to sell you the piece of real estate...actually owns the piece of real estate. Verify title using your own (not the property developer's) attorney. I would also strongly suggest you invest in title insurance. It's not expensive.

2) The developer's background and experience. Ask what else he's done. Go to see his other projects if possible.

3) The development timeframe. What is the schedule for planned infrastructure and improvements? Does it fit in with yourown time scales

4) The developer's capital adequacy. Does the developer have the resources and financial resources to do what he's promising? This is more important if no infrastructure is yet in place.

5) The plan for basic utilities - electricity and water. If these services are not in place...when will they be...and where will they come from

6) The distance from an improved major road.

7) Plans for the homeowners\' association...and the related costs to you.

8) Any build requirements and other owners covenants. A build requirement isn't a bad thing...but you don't want to commit to building a house in 12 or 24 months without realising it.

9.) All associated carrying costs (property taxes, other fees, etc.).

10.) If your physical presence is required for closing. If it is, you may want to prepare a power of attorney so someone can stand in for you.

Property Post International Article - Changes to Home Information Packs

The news story was published by Property Post who contacted me tor my comments on the changes to the Home Information Pack. Please see the full article below:

No more Home Information Packs?

In June 2007 it will become compulsory for anyone in England and Wales who decides to sell a house or flat to put together a home information pack, which will be given to prospective buyers. Since first announcing the packs, the government has made major changes to the rules about what they will contain. One of the most controversial elements, the home condition report, has been dropped, while energy ratings for the property have been introduced.

Commenting on the government’s change of policy on home information packs (HIPs), Paul Marsh, Law Society deputy vice president and spokesman on HIPs, says:
”This is a welcome decision. The Law Society has consistently opposed compulsory home condition reports (HCRs), on the grounds that they would disrupt the house buying process because buyers could not sensibly rely on a survey commissioned and paid for by the seller.

”The revised form of HIP without the mandatory HCR could bring real benefits for consumers. The Society has long advocated sellers preparing as much information as they can at an early stage so that the transaction can move quickly once a buyer is found. The revised form of HIP will build on the work the Society has done.

”The Law Society will continue to work constructively with the government in the lead up to the launch of HIPs and to help shape the scheme to ensure that it will operate in the interests of the public.”

Safaraz Ali, head of Birmingham based - easy4life loans and mortgages, said that the change had caused the Government to lose face, though he stressed that he always said that there would be a shortage of qualified inspectors to meet the initial deadline. He also added that there was “little benefit in transferring the expense of the legal searches from the buyer to the seller.” The

Association of Home Information Pack Providers (AHIPP) said that there would be consumer demand for the HCR since inspectors would still be needed to carry out compulsory energy performance checks.

The new changes will decrease the financial burden on homeowners who would have likely dished out anywhere between £600 to £1000 for HIPs under the previous plan. Without the inclusion of HCRs, the cost will be around £200-£300.

You will, however, still have to put together title deeds and local authority searches, in addition to the standard questions your potential buyers may have. You will also be required to provide Energy Performance Certificates (EPCs), which will need to be conducted by a Home Inspector, so you may want to consider including an HCR.

By providing such information upfront, you may save yourself valuable time. However, it is possible that potential buyers may want a second opinion to double check what you’ve done.

If fewer people are selling because of the change in the system, house prices could go up and you could make a tidy profit.

If you’re looking to purchase a home, HIP law may work to your benefit. Buyers will be required to provide you with certain documentation upfront, saving you time and money. Mandatory Energy Performance Certificates (EPCs) will let you know how energy efficient the home is and how any problems can be improved upon.

The Energy Saving Trust estimates that following the advice on an EPC could save the average homeowner up to £300 a year on fuel bills – a hefty packet and it’s good for the environment!

Unfortunately, with the change in law, you’ll still be stuck with the costs for HCRs, which could add up if you are looking at multiple properties. But remember that any sensible buyer will want to perform extra checks of their own anyway.

In addition, changes in property law and too few qualified Home Inspectors means that less people will be willing to sell, or could be waiting in line to get a certified person to provide an EPC. Fewer houses on the market may mean that house prices could go up.

The good news is that once people get used to the changes, market prices should stabilise and you’ll get more information from the seller upfront without having to hunt for it yourself.