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Tycoon money back battle
INVESTORS are locked in a legal battle with Leeds property tycoon Simon Morris.
Dozens of people who bought buy-to-let properties from his firm, Morris Properties Ltd, claim they paid too much for the houses and flats across the city.
Many say they had properties repossessed after failing to cover monthly mortgage repayments.
Attempts to cut losses by selling showed properties had depreciated by up to 100,000.
One group of 50 investors, represented by Max Gold Partnership, is seeking a cash settlement.
Mr Morris, 30, a former director of Leeds United, says that external economic factors, such as the credit crunch and interest rate rises, are to blame. He has offered 700,000 in a goodwill gesture, which was rejected by the group.
"Many (investors] have been unreasonable about what has happened," Mr Morris told the YEP.
"People bought at the height of the market. The market's changed and they want someone to blame. They see me on the rich list and they hate me and want to make my life a misery and unfortunately that's what they are doing." Mr Morris is reportedly worth 69m, eighth on The Times Young Persons' Rich List 2007 – up from 22nd in 2006.
Breach of contract and misrepresentation actions will now be taken to the civil courts, said Max Gold's head of civil litigation Hammad Ahmad. A without prejudice counter offer to accept 1m has so far been ignored.
A spokesman for Mr Morris and his company, said about the 700,000 offer: "This isn't a settlement, it's an offer of assistance for people who have found themselves in difficulties. We are offering good customer care."
Mr Ahmad said: "I am not saying that 1m is good enough. I am not saying that that is the minimum we would accept.
"If they come back with something which is going to put the ball back into play then fine. As far as I am concerned there's nothing for us to do at present except crack on with legal action."
The investment properties sold by Morris's firm in Leeds were mainly in the student areas of Burley, Woodhouse and Hyde Park. Morris Properties – also trading as Intellectual Property – is now based at Brewery Wharf in the city centre.
An advert taken out in a national newspaper in January promised to "more than double" investments within five years.
Nurse Sarah Adams was living in Devon at the time she bought four houses – three in Burley, Leeds and one in Nottingham – from Morris Properties in January 2006 for 1,050,000.
Each house has since been repossessed. She claims that each was overvalued from the start.
The 57-year-old has left a permanent job and taken up agency work to concentrate on sorting out her finances. She has lost her own home, and lives in rented accommodation in Chippenham, Wiltshire.
"If they could come up with some money it would make my life a bit better," said the mum-of-two.
"I am down to my last 1,000 which I am keeping in case I end up on the streets at any minute."
Avtar Singh Rahl, who lives in Wolverhampton, bought a property in Woodhouse, Leeds, for 325,000 in early 2005.
After he found it difficult to rent out every room in the seven-bed property. He decided to sell at the end of 2006, but found the property only worth around 200,000.
A year later the pricetag had grown to 250,000.
"It's cost me most of my savings," said the 56-year-old electronics engineer."I had to remortgage. It's really hurting me and my family financially."
The firm has a low number of customer complaints said Mr Morris.
"Sometimes you have to wonder what people's agendas are. We have always talked to customers, but we get some incredibly greedy people who spoil it for everyone else."
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Saturday 11 February 2012
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