BGIS Trading Ltd, tdoing business as Chris and Leon Buy Houses featured an advert on its website which stated: “Need To Sell Your House Fast? Negative equity? … Unlike other companies, we can pay up to 100% market value for your house! … Sell Your House For Cash … Up to 100% of market value … Houses bought for cash”.
However, the ASA found the claim primarily applied to houses bought by Chris and Leon Buy Houses through a delayed completion model. The seller of the property would receive a nominal upfront payment but the sale would be delayed, allowing the property value to recover. In the meantime the mortgage payments, maintenance and costs of the property would be paid by Chris and Leon Buy Houses or one of their partners. The seller would receive the agreed sale price at the end of the delayed completion period.
The ASA said the website advert suggest 100% value would be offered on all house purchases while mentions of selling your house ‘fast’ suggested payment would be received quickly and as a result the firm was banned from using the advert.