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teddyboy

£150-175k House For £100k? F------ck Offffff!

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Had a cracking discussion/debate with a colleague in work yesterday.

He lives in a street in Bromborough which consists of 3 bed semi's with garden. There is one up for sale with SSTC for £150k (been like this for 4 months or more - so could be BS!), and another for £175K. When looking at sold prices the SOLD PRICE for the area PEAKED at £150K.

The one for £150k SSTC need a lot of work doing to it. I would be very surprised if that sold above the £120K threshold, but lets say it went for £130?

The one for £175 has a garden like a dairylea Triangle!!! Its right in the centre of a bend in the road. Apart from that I am lead to believe its a good house. I think that a house that is £25K Above the best achieved price for the area HAS TO BE PERFECT to achieve anywhere near that. So if they were being reasonable I would say that it would sell for £140-150K.

These estimates are based on similar houses that have sold in the past 2 years. As we know, they have dropped for the last 14 months or so, so I think it would be fair to knock 5% off my quoted prices in todays market?

BUT, number 9 shows up on the LR figures as sold 27/7/05 for £100,000.

I simply pointed out to the guy that a house in his road sold for £100K. His response? - get the f*** outta here! There is no way a £175K house would sell for £100K! I agree, but as I pointed out it was his ASSUMPTION that the houses are worth £175K. When I showed him the LR figures for the area he agreed that £150K was a peak and actually said that he thinks the true value is about £130K. Very honest of him I thought :)

So wher it all went wrong was when I suggested that ASKING PRICES are grossly overpriced, but the average Joe sees the house UP for £175K sees that its sold and PRESUMES that someone paid that price - therefore the houses are worth £175K!!!!!

When I proved that the £175K asking price was 25K over valued. If I was to buy the house for £140K its only a 10K discount or 7%. Not a so called LOSS of 35K! I did eventually get through to him, but being the devils-advocate that I am. I agreed that it looks a bit strange that it had sold for £100K?

He said - it wasnt even up for sale? Well we know EA's dont put boards up anymore coz we would see how many properties they have on their books and the valuations can contridict another property in that street. We have 3 up fo sale in our street £165K, £200K and £225K. 60k difference in 1 street!! KNOBS!!!

I DID AGREE with him that £100k was a small figure. We argued and I said that in the OPEN MARKET it would achieve more. Apparently its extended, conservatory etc and a good solid house. But it was not sold on the open market. So it got us thinking????? Has he sold it to his missus and got divorced?

Well if they went 50/50 it means he thinks its worth 200K?

Possible but would be a complete knob if he thought that!

Has he RENTED the property for the past 4 years and decided to buy it?

Can't see it as he must have paid for the house upgrades?

The only rational explanation was a MEW> So here's the question.

When you MEW do you physically RE-BUY your property at an inflated price above what you bought for. And more importantly, is this registered as a purchase?

Answers on a post card, please?>

Edited by teddyboy

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Guest Charlie The Tramp
When you MEW do you physically RE-BUY your property at an inflated price above what you bought for. And more importantly, is this registered as a purchase?

Simple answer No.

A charge put on the deeds by the lender does not state the amount borrowed or any additional amounts borrowed.

The solicitor dealing with the future sale of the property has the duty to ensure the lender is repaid in full on the final amount owing on completion of the sale.

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Simple answer No.

A charge put on the deeds by the lender does not state the amount borrowed or any additional amounts borrowed.

The solicitor dealing with the future sale of the property has the duty to ensure the lender is repaid in full on the final amount owing on completion of the sale.

Thanks for your response CTT. Can I conclude then, that this purchase was made where there is now a new owner? I.E. This house HAS sold for £100K in a market that would normaly dictate 30K more?

The thing is, the new owner is, lets say, a bit dodgy.

We cannot understand why it has sold for UMV. We think there is something a bit fishy as it never wnet onto the market. Could he have sold it to his missus because his house was secured on a business thats not doing too well? I thought this would not be the case because surely if you are securing a loan a property it is NOT yours to sell?

Im confuzzed :blink:

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Answers on a post card, please?>

There are lots of possibilities. You can't use a single transaction as proof of anything.

An example. Back in the sixties, my grandfather bought a house and rented it to one of my aunts. When he died twenty years later, his will gave her the option to buy it from his estate for the price he'd originally paid for it -- which was probably only around 10% of its current market value. There are many reasons for a property to sell at a price other than the open market price.

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A local guy living with girlfriend who had five children bought her house when she died . £300k house for £250k as he needed , per the will , to give the kids £50k each . That's the rumour .

I don't know how they get out of underpayment of stamp duty though or IHT . Maybe they just slip the Treasury a cheque for the tax .

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A local guy living with girlfriend who had five children bought her house when she died . £300k house for £250k as he needed , per the will , to give the kids £50k each . That's the rumour .

Very weird though. Just cause the will states 50K each doesn't mean they will get that unless the estate has it. Imagine scenario where house prices dropped so that the house was worth 100K. The will can't dictate the assets, it can only direct the assets available toward the recipients.

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Very weird though. Just cause the will states 50K each doesn't mean they will get that unless the estate has it. Imagine scenario where house prices dropped so that the house was worth 100K. The will can't dictate the assets, it can only direct the assets available toward the recipients.

Jeez , you can tell I don't get out much :(

Sorry ,

The scenario is :

House market value £300k .

Inherited by 5 adult offspring plus bloke .

Bloke buys house for £250k (per LR) and gives £50k each to kids.

Pays taxes .

Hence property appears to be sold for much less than the perceived market value of £300k ie sold for £250k

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Simple answer No.

A charge put on the deeds by the lender does not state the amount borrowed or any additional amounts borrowed.

The solicitor dealing with the future sale of the property has the duty to ensure the lender is repaid in full on the final amount owing on completion of the sale.

Actually, there are two types of MEW in the third age - equity release where the capital and interest are paid back by sale of proerty on your death and reversion where you actually sell the property to a lender/insurance company etc I'm not sure of the details nor if they go on LR - I wouldn't touch it with an extremely large barge pole.

Also, our current landlord bought the house for £90k in 2002 but he recently told me it was for 50% of the property from his relative. Yet £90k is what's on LR / ourproperty.co.uk

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  • 301 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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