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Real House Prices - Vendor Deposits

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Is there anyway of finding out what the real price of a property was allowing for vendor deposits??

The reason I say this is that we just sold our house in West Yorkshire for £215,000 but gave the purchasers a £30,000 vendor gifted deposit (all above board - mortgage company knew all about it). That means that really the house sold for £185,000 but all the reports will show it selling at £215,000.

Is there anyway of finding out where else this is happening so we can see what a house is really selling for?

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Is there anyway of finding out what the real price of a property was allowing for vendor deposits??

The reason I say this is that we just sold our house in West Yorkshire for £215,000 but gave the purchasers a £30,000 vendor gifted deposit (all above board - mortgage company knew all about it). That means that really the house sold for £185,000 but all the reports will show it selling at £215,000.

Is there anyway of finding out where else this is happening so we can see what a house is really selling for?

IS the lender a subrprime lender or northern rock by any chance?

IT obviously means that you are willing to sell at 185k and he/she only willing to buy at 185k and so if the bank lends 185k,

it is lending at 100% LTV.

There is no way to tell, other than asking the question in the property questionable and ask to see the relevant mortgage offer/application..

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IS the lender a subrprime lender or northern rock by any chance?

IT obviously means that you are willing to sell at 185k and he/she only willing to buy at 185k and so if the bank lends 185k,

it is lending at 100% LTV.

There is no way to tell, other than asking the question in the property questionable and ask to see the relevant mortgage offer/application..

I suspect we will see more of this as things tighten up. A friend of mine is living in rented and is being booted out so the landlord can sell - he did however offer them the flat first with a GD.

Does that landlord get any benefit from doing this, or is it just that they are more likely to get a sale?

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Is there anyway of finding out what the real price of a property was allowing for vendor deposits??

The reason I say this is that we just sold our house in West Yorkshire for £215,000 but gave the purchasers a £30,000 vendor gifted deposit (all above board - mortgage company knew all about it). That means that really the house sold for £185,000 but all the reports will show it selling at £215,000.

Is there anyway of finding out where else this is happening so we can see what a house is really selling for?

So you, your buyer and their lender have colluded to pretend that the house is worth £215k and that the buyers have a 15% deposit, and now you want to find out what other properties have pulled a similar scam?

Sorry, but as far as I am aware there is no central register of mortgage fraud, especially when the lender was aware of the lie.

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Is there anyway of finding out what the real price of a property was allowing for vendor deposits??

The reason I say this is that we just sold our house in West Yorkshire for £215,000 but gave the purchasers a £30,000 vendor gifted deposit (all above board - mortgage company knew all about it). That means that really the house sold for £185,000 but all the reports will show it selling at £215,000.

Is there anyway of finding out where else this is happening so we can see what a house is really selling for?

How do you know the mortgage company knew all about it - took the purchasers word for it that they'd told them?

I appreciate that you think that this is above board - but even if it is surely it shouldn't be - how is it anything other than fraud?

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Is there anyway of finding out what the real price of a property was allowing for vendor deposits??

The reason I say this is that we just sold our house in West Yorkshire for £215,000 but gave the purchasers a £30,000 vendor gifted deposit (all above board - mortgage company knew all about it). That means that really the house sold for £185,000 but all the reports will show it selling at £215,000.

Is there anyway of finding out where else this is happening so we can see what a house is really selling for?

Is this a wind up?

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Is there anyway of finding out what the real price of a property was allowing for vendor deposits??

The reason I say this is that we just sold our house in West Yorkshire for £215,000 but gave the purchasers a £30,000 vendor gifted deposit (all above board - mortgage company knew all about it). That means that really the house sold for £185,000 but all the reports will show it selling at £215,000.

Is there anyway of finding out where else this is happening so we can see what a house is really selling for?

May I ask what what the motivation for such an arrangement was? It's not clear if/how you benefited from it.

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May I ask what what the motivation for such an arrangement was? It's not clear if/how you benefited from it.

They benefitted from it by selling their house for £185 grand.

If the buyer had to put up a deposit, I imagine the price would have been a lot less.

The loser is the mug who is financing this much riskier mortgage, and the borrower, who is going to be lumbered with a debt that will be higher than they should be lumbered with, given that £185 grand is a lot of debt for someone that cant save £30 grand.

So, who is putting up the funds that are being lent here? Taxpayer via deposit insurance via NR by any chance?

A vendor deposit is not a deposit, it is a price reduction. Pretending it is a deposit is fraud to someone somewhere. As I said, that likely mug is going to be the taxpayer who will have to make good on the losses of the bank, which will inevitably follow, if it is allowed to get away with these 100% mortgages.

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My point of the post is that I wonder how much this is really happening in that it's obviously showing houses as selling more than they are really selling for and so will be suggesting houses are selling for more than they really are...

It was all legitimate, solicitors, mortgage company (not NR!) all knew about it, it was documented in everything. Surveyor valued house at £220k, buyers also put down a deposit. Personally I was suprised at the value as we couldn't sell it at that!

As for why we did it - we were desperate to sell having relocated to another part of the country for work (and to rent) 18 months ago.

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My point of the post is that I wonder how much this is really happening in that it's obviously showing houses as selling more than they are really selling for and so will be suggesting houses are selling for more than they really are...

It was all legitimate, solicitors, mortgage company (not NR!) all knew about it, it was documented in everything. Surveyor valued house at £220k, buyers also put down a deposit. Personally I was suprised at the value as we couldn't sell it at that!

As for why we did it - we were desperate to sell having relocated to another part of the country for work (and to rent) 18 months ago.

The point is what we want it to mean, stop trying to keep us on message.

You say it was legit? Then how come solicitors and mortgage providers and surveyors were involved, couldnt you find anyone honest?

As you rightly point out, the house is worth what someone will pay. The ridiculousness of a surveyor saying that a house was worth £220, when you were selling it for £185. I mean if he had believed himself, he could have made 10% there and then by buying it himself.

As for how much of this is going on up and down the country, I dont know, but it wouldnt surprise me. If it is going on, then the moral hazard of not letting bust banks fail and letting crooked bankers free with other peoples money, is coming home to roost.

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I could never understand why these types of arrangements are anything other than fraud.

Where do we draw the line? What next, £900k gifted deposits on £1m houses?

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The point is what we want it to mean, stop trying to keep us on message.

You say it was legit? Then how come solicitors and mortgage providers and surveyors were involved, couldnt you find anyone honest?

As you rightly point out, the house is worth what someone will pay. The ridiculousness of a surveyor saying that a house was worth £220, when you were selling it for £185. I mean if he had believed himself, he could have made 10% there and then by buying it himself.

As for how much of this is going on up and down the country, I dont know, but it wouldnt surprise me. If it is going on, then the moral hazard of not letting bust banks fail and letting crooked bankers free with other peoples money, is coming home to roost.

Why did you not just sell for 185K?

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We would have sold for virtually anything - they were the only people who offered and that was the deal they needed/wanted.

hmm, interesting. Thanks for being open about it.

Would I be correct in saying that the £30k gifted deposit came from the buyer's mortgage company via yourself? (ie did you have to give the £30 out of existing resourses and wait for it to be returned, or was it all taken care of in the paperwork?)

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We would have sold for virtually anything - they were the only people who offered and that was the deal they needed/wanted.

Why did you not advertise your house for, say, £150k (will consider lower offers) or just auction the damn thing?

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All taken care of in the paperwork. We just got what was left at the end (£185k less mortgage, EA fees etc) We didn't physically pay the buyers anything.

interesting, thanks for your frankness.

I suppose this practise (if commonplace) undermines any advantage in being a cash buyer. Makes you wonder how much to believe valuations.

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All taken care of in the paperwork. We just got what was left at the end (£185k less mortgage, EA fees etc) We didn't physically pay the buyers anything.

How curious, did the recipients of the gift also have to pay income tax on the gift portion, as well as stamp duty on the tax on the gift?

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I very much doubt the buyers mortgage company knew. The buyers probably just lied on the application as to where the deposit came from. Otherwise it would be nearly a 100% mortgage.

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I heard something similar on a BBC Radio 4 broadcast from Manchester shortly after the credit crunch. Property developers of flats there were giving buyers 'cashback' and recording a higher sold figure in order to sustain prices. This was considered fraudulent at the time, could well be a criminal offence, and no-one knew how widespread the practice was. I wondered if anyone else had heard this programme.

The potential benefits to property developers are obvious, maybe less so to private sellers. I can't imagine a lender being that easily taken in - surely they don't want to lend more than a property is worth. Or maybe they do. The taxpayer will pick up the tab if it all goes wrong again.

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That said, I was exploring the possibilities of 'bmv' with a few lenders, and there appears to be a split.

Some appear to lend on the price as long as it is under the assessed value while others are happy to accept the difference in price paid and assessed value as deposit.

Interesting either way.

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  • 285 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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