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Seem to be seeing a lot of this around now, advertising for cash buyers only - short leases in particular, place needs renovation etc.

Looks like a relatively new phenomenon to the extent I'm seeing it. Anyone else?

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Seem to be seeing a lot of this around now, advertising for cash buyers only - short leases in particular, place needs renovation etc.

Looks like a relatively new phenomenon to the extent I'm seeing it. Anyone else?

I saw this the last time the market started tumbling.

Sellers are looking for the greatest fool (as opposed to the more usual greater fool). They are hoping for cash buyers who will pay over a bank's valuation who will be so stupid that they will not get a valuation done by an independent RICS surveyor.

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I saw this the last time the market started tumbling.

Sellers are looking for the greatest fool (as opposed to the more usual greater fool). They are hoping for cash buyers who will pay over a bank's valuation who will be so stupid that they will not get a valuation done by an independent RICS surveyor.

No, not seeing this myself - just seeing hundreds of properties stubbornly refusing to drop asking price at all.

Oddly, from reading the MSE forum, it appears that sellers will not take a low offer from a cash buyer but will drop the price for a mortgage needer once the bank's surveyor says "You're having a laugh!".

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I saw this the last time the market started tumbling.

Sellers are looking for the greatest fool (as opposed to the more usual greater fool). They are hoping for cash buyers who will pay over a bank's valuation who will be so stupid that they will not get a valuation done by an independent RICS surveyor.

Oddly enough most of the stuff I've noticed has actually been priced at a s significant discount. Then again I'm not a RICS surveyor.

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Oddly enough most of the stuff I've noticed has actually been priced at a s significant discount. Then again I'm not a RICS surveyor.

We could be looking at different market segments.

There are some pre-fab type houses that are not mortgageable (if there is such a word) that can only be bought for cash.

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We could be looking at different market segments.

There are some pre-fab type houses that are not mortgageable (if there is such a word) that can only be bought for cash.

Yes I've seen those too but I don't know how to make head nor tale of them

Mostly I've seen short leases coming in in the London area, where doing a rough sum on the cost to extend added to the asking price is still at a hefty discount from current market value

But I haven't seen the place so there might be other stuff going on who knows.

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Yes I've seen those too but I don't know how to make head nor tale of them

Mostly I've seen short leases coming in in the London area, where doing a rough sum on the cost to extend added to the asking price is still at a hefty discount from current market value

But I haven't seen the place so there might be other stuff going on who knows.

Isn't there a (30?) year minimum on remaining leases required for mortgages to be granted?

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I saw this the last time the market started tumbling.

Sellers are looking for the greatest fool (as opposed to the more usual greater fool). They are hoping for cash buyers who will pay over a bank's valuation who will be so stupid that they will not get a valuation done by an independent RICS surveyor.

That's why I like this site. I LEARN from it.

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I saw this the last time the market started tumbling.

Sellers are looking for the greatest fool (as opposed to the more usual greater fool). They are hoping for cash buyers who will pay over a bank's valuation who will be so stupid that they will not get a valuation done by an independent RICS surveyor.

A RICS surveyor only says what it's worth now,they don't do crystal ball gazing,but banks do that's why they are insisting on larger deposits they know where it's going.

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No, not seeing this myself - just seeing hundreds of properties stubbornly refusing to drop asking price at all.

That's exactly what I'm seeing too. Houses I fancy on the market since January and either no drop at all, or a very small drop like £5k off.

The fact is, most people just don't have to sell.

Im also seeing an awful lot of property with no upward chain. These aren't dropping in price either.

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Yes I've seen those too but I don't know how to make head nor tale of them

Mostly I've seen short leases coming in in the London area, where doing a rough sum on the cost to extend added to the asking price is still at a hefty discount from current market value

But I haven't seen the place so there might be other stuff going on who knows.

Anecdotally, I had a cash (prospective) purchaser contact me this week. He was looking to buy a leasehold flat with a 50 year lease for £260K. The flat's not even in London for crying out loud!

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That's exactly what I'm seeing too. Houses I fancy on the market since January and either no drop at all, or a very small drop like £5k off.

The fact is, most people just don't have to sell.

Im also seeing an awful lot of property with no upward chain. These aren't dropping in price either.

Ditto. Noticed many disappearing from market now - not sold, just being taken off the market for Christmas/Winter.

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Yes I've seen those too but I don't know how to make head nor tale of them

Mostly I've seen short leases coming in in the London area, where doing a rough sum on the cost to extend added to the asking price is still at a hefty discount from current market value

But I haven't seen the place so there might be other stuff going on who knows.

I think it's a catch 22: only the leaseholder can apply to extend the lease, so you can't do it until you've bought the place, but to buy it you need a mortgage, but the bank won't give a mortgage if remaining lease is under 'x' years (50 by the end of the mortgage term or so?), so you're stuck unless you have the cash up-front.

Of course the current occupier could pay for the lease extension and then sell normally, but in this market would you want to throw £thousands into it with a risk of never getting it back?

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A RICS surveyor only says what it's worth now,they don't do crystal ball gazing,but banks do that's why they are insisting on larger deposits they know where it's going.

Neither of these have any particular competency as witnessed by the last few years :D

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Isn't there a (30?) year minimum on remaining leases required for mortgages to be granted?

No idea, the leases of the properties are in the region of 40-50 years

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I think it's a catch 22: only the leaseholder can apply to extend the lease, so you can't do it until you've bought the place, but to buy it you need a mortgage, but the bank won't give a mortgage if remaining lease is under 'x' years (50 by the end of the mortgage term or so?), so you're stuck unless you have the cash up-front.

Of course the current occupier could pay for the lease extension and then sell normally, but in this market would you want to throw £thousands into it with a risk of never getting it back?

That seems to make sense, you have to wait a couple of years before you can enforce the extension as well, at which point the cost has come up. You can of course ask the seller to enforce the extension as part of the condition of sale but this requires the seller to play ball.

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This is my favourite 'cash buyer' property out there at the moment - check out this beauty!

It kind of make you wonder who used to live there - surely even crack crazed squatters with spectacularly bad personal cleanliness would leave it in a lot better state than this?

Check out the quality of decor and the beautiful garden. All for a mere 14 times average income!

But odds on that no mortgage company would touch this.

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I think it's a catch 22: only the leaseholder can apply to extend the lease, so you can't do it until you've bought the place, but to buy it you need a mortgage, but the bank won't give a mortgage if remaining lease is under 'x' years (50 by the end of the mortgage term or so?), so you're stuck unless you have the cash up-front.

Of course the current occupier could pay for the lease extension and then sell normally, but in this market would you want to throw £thousands into it with a risk of never getting it back?

For a property with less than 50 years lease the costs of the exrtension should be much less than the increase in value. ISTM that you'd be nuts to sell on a property with such a short lease, in any market.

(People only try it because they hope to get the "full" value of the property with a long lease when it only has a short one. Usually it doesn't work)

tim

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We've had a rash of cash buyer only adverts for the building I'm renting in.

I suspect mostly due to them being reposessions and they want a quick sale.

Possibly also due to some funny stuff that happened with the management company.

Many of the flats for sale are on at little over half what the Land Registry figures say they originally sold for in 2005/2006.

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I think it's a catch 22: only the leaseholder can apply to extend the lease, so you can't do it until you've bought the place, but to buy it you need a mortgage, but the bank won't give a mortgage if remaining lease is under 'x' years (50 by the end of the mortgage term or so?), so you're stuck unless you have the cash up-front.

Of course the current occupier could pay for the lease extension and then sell normally, but in this market would you want to throw £thousands into it with a risk of never getting it back?

A friend of mine who is a conveyancing solicitor enlightened me with something I did not know about buying a house with a leasehold.

I told him how frustrating it was to see a house listed as freehold and that the EAs appeared to have no knowledge of what the leasehold cost was per annum. He jumped in and told me the lease on his house was 999 years at £4.50 every six months but that some leases were many thousands of pounds per year. I later heard of one which is 17K per annum on a tiny 2 up 2 down terrace.

But what my solicitor friend told me that surprised me was that because most deeds are held by the bank who owns the mortgage the reality for most buyers is that they will not find out the cost of the lease until they have invested quite a bit of cash in buying the house - i.e. got a solicitor in to do searches, got the bank to show them the deeds.

Of course, the sellers know what the lease annual costs are but if they are reluctant to tell you then be careful.

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We've had a rash of cash buyer only adverts for the building I'm renting in.

I suspect mostly due to them being reposessions and they want a quick sale.

Possibly also due to some funny stuff that happened with the management company.

Many of the flats for sale are on at little over half what the Land Registry figures say they originally sold for in 2005/2006.

Yes, absent freeholder issues are a bit of a nightmare, have to sort out some form of indemnity insurance etc. but I suspect that mortgage lenders at the moment are just glancing at these things and giving a quick thumbs down, whereas a few years ago it was the other way around.

Edited by wealthy

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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