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TheCountOfNowhere

Estate Agent False Advertising

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I am quite surprised at the house prices in Tamworth. I wonder what average earnings are there?

What the £350K or the £280K ? :lol::lol::lol:

Asking prices and selling prices...two different things.

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Complaint submitted for false advertising.

That makes 2..another 98 and we'll make the local news in tamworth...not much else happens up that way :P

Edited by TheCountOfNowhere

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To be fair its not a shed, its said it was originally part of a small bakery so a proper building, quirky? maybe! but its no different to a barn conversion in the countryside or one of grand designs small factory unit conversions in cities.

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I had a courteous reply from the EA! Not sure if I'm allowed to quote it!

Sounds like the EAs are all a bit cocky at the moment.

I sincerely hope this renewed optimism falls flat on it's face.

They might not be so cocky when trading standards turn up at their door step. I've complained about something before and they usually take it quite seriously.

This sort of false advertising should not be allowed.

Edited by TheCountOfNowhere

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why ever not?

It gets worse. In the EAs email response, it gives details of the equity held and htb loan outstanding 'assuming the property doubles in value'! No mention that the property is more likely to fall in value than rise. Will post the full mail later when I'm not using my phone.

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why ever not?

It gets worse. In the EAs email response, it gives details of the equity held and htb loan outstanding 'assuming the property doubles in value'! No mention that the property is more likely to fall in value than rise. Will post the full mail later when I'm not using my phone.

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It gets worse. In the EAs email response, it gives details of the equity held and htb loan outstanding 'assuming the property doubles in value'! No mention that the property is more likely to fall in value than rise. Will post the full mail later when I'm not using my phone.

'Assume' indeed, except it's my damn money these idiots are gambling with - and they're betting AGAINST me with it! :angry:

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I've got to confess that I don't actually understand how HTB1 works!!

I know in the 6th year there's a fee of 1.75% - and then the fee rises annually by RPI + 1% - that's the bit I'm not clear on.

If RPI in year 7 is say 5%, does the fee increase by 6% (RPI + 1%) i.e. from 1.75% to 7.75% - or would it only be an increase of 6% of 1.75% i.e. to 1.855%?

Edited by oldsport

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I've got to confess that I don't actually understand how HTB1 works!!

I know in the 6th year there's a fee of 1.75% - and then the fee rises annually by RPI + 1% - that's the bit I'm not clear on.

If RPI in year 7 is say 5%, does the fee increase by 6% (RPI + 1%) i.e. from 1.75% to 7.75% - or would it only be an increase of 6% of 1.75% i.e. to 1.855%?

I'm curious about that too. I'm assuming it's the latter. if it's the former then some people will be in for a shock.

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I've got to confess that I don't actually understand how HTB1 works!!

I know in the 6th year there's a fee of 1.75% - and then the fee rises annually by RPI + 1% - that's the bit I'm not clear on.

If RPI in year 7 is say 5%, does the fee increase by 6% (RPI + 1%) i.e. from 1.75% to 7.75% - or would it only be an increase of 6% of 1.75% i.e. to 1.855%?

The way I read it is in bold ,but what`s not that clear is whether it`s an annual fee or is it compounded like IR`s on a loan i.e monthly

Edited by long time lurking

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It looks more like a garage to me. I'm guessing the original garage was converted into the bakery and now the bakery has been converted into a beautiful house with no garden! 360,000, what a joke!

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I've got to confess that I don't actually understand how HTB1 works!!

I know in the 6th year there's a fee of 1.75% - and then the fee rises annually by RPI + 1% - that's the bit I'm not clear on.

If RPI in year 7 is say 5%, does the fee increase by 6% (RPI + 1%) i.e. from 1.75% to 7.75% - or would it only be an increase of 6% of 1.75% i.e. to 1.855%?

The fee goes to 1.855% in your example, the other way is not consistent with a 6% fee increase- it more than quadruples!

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The fee goes to 1.855% in your example, the other way is not consistent with a 6% fee increase- it more than quadruples!

Thanks. Makes sense.

So that's a really low fee, even with RPI at 5%?

I'd got the impression from some other posts that the fees were going to be really high once RPI kicked in. But that seems really low to me.

Edited by oldsport

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Thanks. Makes sense.

So that's a really low fee, even with RPI at 5%?

I'd got the impression from some other posts that the fees were going to be really high once RPI kicked in. But that seems really low to me.

Remember, HTB only flies by handing people money cheaper than they can get it presently.

Osborne must be thinking about the general election in 2020 :-)

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It gets worse. In the EAs email response, it gives details of the equity held and htb loan outstanding 'assuming the property doubles in value'! No mention that the property is more likely to fall in value than rise. Will post the full mail later when I'm not using my phone.

It will double in value but are you willing to wait 50 years?!

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I had a courteous reply from the EA! Not sure if I'm allowed to quote it!

Here was the email response that I intiailly received from the agent:

Dear Sir or Madam,

Thank you very much for your e-mail regarding the Help To Buy scheme.

Under the new build Help To Buy scheme, the purchaser contributes 5% to the deposit to purchase the property, borrowing 75% from the lender. The government contributes a loan of 20% towards making the deposit 25%. This loan is interest free for the first five years and then there after the purchaser will pay interest only for the remainder of the term. The loan is repayable upon selling the property.

For example;

The property in question is on the market for £350,000.

The purchaser is required to contribute 5% at £17,500.

The government contributes a loan of 20% at £70,000.

The lender will lend 75% at £262,500.

Therefore the customer is purchasing £280,000 of the house under the Help To Buy scheme. The full sale price is £350,000 which is why the property is marketed at this price with the Help To Buy scheme advertised within.

Furthermore, assuming the property was to double in value to £700,000 come the time of selling and assuming the mortgage is fully paid off, the owner will be entitled to 80% of the sale price £560,000 and therefore paying the government back 20% which would be £140,000.

I trust this clears up the matter and should you wish to further your interest in this property with a viewing please do not hesitate to contact me on the details below.

Kindest regards,

I've since had a personal exhange of emails with the agent in question and I put forward my view that they were being purposely misleading in their actions. The agent confirmed however that:

I am happy to confirm that, following a conversation with my line manager, the Help To Buy price is to be removed from all marketing on this property due to the number of complaints we have received from this particular advert today. Our property portal uploads usually take place overnight so please give until tomorrow morning for any alterations to show.

Will check tomorrow to make sure they are true to their word. A small victory in grand scheme of things, but a victory nonetheless.

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