The Empire Property Group UK

[CaveatEmptor]

This company, based in Surrey, advertise in the property sections of the Sunday papers. They offer a 'low money down' investment in apartments in Manchester and the like. The get a bank valuation for in excess of the asking price, so that your 85% mortgage based on the valuation ends up being more like a 90% mortgage on the price actually paid. I saw that they advertised on Rightmove (the UK's largest online property site) and they arranged for me deal with well known mortgage brokers (like 20Twenty and Savilles) who had dealt with Empire before, so I was happy to proceed. I got them to confirm in an email that my booking deposit would be returned if they could not arrange an 85% mortgage. I was put in touch with four mortgage brokers, all of whom said that, because I was Irish resident, an 80% mortgage would be the max I could get. I told Empire that this was a dealbreaker, and I wanted my deposit back. They said that they had paid the deposit to the builder, and that he was refusing to return it. I told them that that was their problem, and that they should refund it to me immediately. They won't. I have logged a complaint against them with Trading Standards in the UK, and I have sought professional advise from the European Consumer Centre in Dublin - they have an arbitration service which aims to get things sorted before the lawyers get involved!
Has anyone else had any experience with Empire, and any advice for how to chase them for the money (e.g. does the Irish Small Claims court have jurisdiction, or the UK one?). Thanks!

 

[ClubMan]

The get a bank valuation for in excess of the asking price, so that your 85% mortgage based on the valuation ends up being more like a 90% mortgage on the price actually paid.

That sounds a bit suspect/dodgy. How to they manage to get the property valued for more than it's actually being sold for?

I saw that they advertised on Rightmove

Is that the full extent of your research into the company before transacting business with them? Did you have a solicitor advise you on this matter?

(e.g. does the Irish Small Claims court have jurisdiction, or the UK one?).

I would not have thought that the Small Claims Court would deal with property investment issues since they are really business to business transactions (between the property investor and the seller or other relevant agency) and not consumer transactions.