Friday, May 12, 2017

RTB-er milking the system

Telegraph: Woman raffling her London home for £3.75m bought it three years ago through right-to-buy – for just £360k

A homeowner who tried to raise £3.75m by raffling her home online bought the property three years ago using the controversial right-to-buy scheme, and paid just £360,000.
The owner, who is believed to have lived there since 2002, bought the property under the Government’s right-to-buy scheme three years ago, according to documents lodged with the Land Registry.
It is understood that at the time it was valued at £460,000. Land Registry records confirm, however, that the price paid was £360,000, indicating the buyers benefited from a £100,000 right-to-buy discount.
The raffle was halted for breaking gambling laws , but he five-bedroom flat is still on the market, listed Rightmove for £1.25m.

Posted by little professor @ 11:07 PM (4706 views) Add Comment

5 Comments

1. icarus said...

There have always been laws and rules regarding operating raffles. Surely she would have sought legal advice before doing this. The gambler Barney Curley famously nearly landed in hot water for raffling his mansion in Ireland in the 80s. (I believe that in Ireland the promoter of a raffle can keep up to 45% of the entry fees to cover admin and marketing. How much did she spend on admin and marketing given that she struggled to pay her mortgage?)

"Ms Qadri said on the website she had tried to sell her home on the open market, but had battled to find a buyer." I'm sure that many on this site will have an answer to that one.

Saturday, May 13, 2017 09:13AM Report Comment
 

2. reticent said...

Given the effect of the stamp duty reforms on the £800k+ market, Brexit and just general stagnation over the last 2-3 years, during which HTB and FLS and the post-MMR price war had largely run their course, a near-tripling from £460k to £1.25m seems reasonable, Icarus.

Not really sure what you're referring to.

Saturday, May 13, 2017 07:25PM Report Comment
 

3. icarus said...

reticent - seems it's reasonable to sellers and agents but not to buyers.

Saturday, May 13, 2017 07:51PM Report Comment
 

4. mombers said...

Right to Buy - what a c0ckup. 2 million homes sold, current value at average price of £200k = £400bn - BILLION - lost from the public balance sheet. Sold for a pittance and now of course the banks and landlords are raking in money from assets that could instead be housing people at cost and freeing up money to spend in the productive economy...

Monday, May 15, 2017 09:29AM Report Comment
 

5. icarus said...

mombers - that story is repeated across countries and across public-private schemes. Look at the Public Finance Initiative and at Trump's public-private infrastructure 'plan' in the US. https://systemicdisorder.wordpress.com/2017/02/22/public-private-partnerships/

Monday, May 15, 2017 08:03PM Report Comment
 

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