Venger Posted February 4, 2017 Share Posted February 4, 2017 2 hours ago, Digsby said: So he bought the place in 2011 for £435k. House prices in Lancashire are 10% higher than they were in 2011, putting the unimproved value at somewhere around £480k. He's spent £150k on it. Does that mean it's worth £620k? If nobody will buy it at £500k then clearly not. It is patently NOT worth £845k (the T&Cs state this valuation is an "estimation by owners"). Quote Conformity: If the neighbourhood consists of 2,000 square feet, three-bedroom home, improving a property above that standard may not be profitable. Converting a home by adding 500 square feet and changing the internal layout to four bedrooms and three baths could be money poorly spent, based on the principle of conformity. Contribution: This principle acknowledges additional market value one may expect from improving a property is not equal to cost, but to the contribution those changes make to actual market value. Thus, in a low-demand market, an improvement may add only £2,000 to market value even though the actual cost was £5,000. Substitution: This principle is, "A property's greatest potential market value is limited by the market value of other, similar properties." Thus is would not be realistic to judge market value in a vacuum. Without considering the market value of similar properties located in a similar area, we cannot accurately analyze market value of any property. This theory is easily observed. When two similar properties are for sale, the lower-priced one will tend to sell first and, as a result, the market value of the remaining property may be lowered. Quote Link to comment Share on other sites More sharing options...
Digsby Posted February 4, 2017 Share Posted February 4, 2017 Precisely, V - so he's spent £150k under the impression that every £1k he spends is increasing it's "value" by £2k. Dumb. Look at the images of it when he bought it - there was nothing wrong with it, a redecoration in expensive materials, not a renovation. Quote Link to comment Share on other sites More sharing options...
Venger Posted February 4, 2017 Share Posted February 4, 2017 (edited) 11 minutes ago, Digsby said: Precisely, V - so he's spent £150k under the impression that every £1k he spends is increasing it's "value" by £2k. Dumb. Look at the images of it when he bought it - there was nothing wrong with it, a redecoration in expensive materials, not a renovation. I read you Digsby! Even the description in the 2011 listing - seemingly for this property - suggests it had been through improvements by the then owner. Quote The property forms part of the former Melling Hall a magnificent residence and former hotel which dates back to the Georgian era. The property has recently been updated, improved and modernised whilst retaining many of the original features; including fine fireplaces, panel doors, cornices, deep skirting boards and architraves, sash windows and well proportioned rooms. A well presented family home with the conveniences of modern day living such as a gas fired central heating system, contemporary fitted kitchen with some integrated appliances, en-suite facilities to six of the seven bedrooms, three reception rooms, cloaks and utility room. ..more from 2011 listing (asking price £435,000) + pics http://www.rightmove.co.uk/property-for-sale/property-30473863.html Although I don't have my 'eye' in today, to look at the Daily Mail photos to try and work out what the current owner has done vs the 2011 pics we've got. Edited February 4, 2017 by Venger Quote Link to comment Share on other sites More sharing options...
Bear Hug Posted February 4, 2017 Share Posted February 4, 2017 6 hours ago, Digsby said: Precisely, V - so he's spent £150k under the impression that every £1k he spends is increasing it's "value" by £2k. Dumb. Look at the images of it when he bought it - there was nothing wrong with it, a redecoration in expensive materials, not a renovation. It did look just fine in 2011. What would it take for DailyMail to do a before and after article analysing the poor performance of this renovation investment? I know they can do it! They have done it here: http://www.dailymail.co.uk/news/article-3237153/Even-changing-rooms-wasn-t-No-one-wants-buy-Laurence-Llewelyn-Bowen-s-1-6million-mansion-swapped-garish-decor-neutral-tones.html Quote Link to comment Share on other sites More sharing options...
juvenal Posted February 4, 2017 Share Posted February 4, 2017 These house raffle schemes always end in failure. The promoters always think they are the first one to think of it. Quote Link to comment Share on other sites More sharing options...
spunko2010 Posted February 5, 2017 Share Posted February 5, 2017 1 hour ago, Bear Hug said: It did look just fine in 2011. What would it take for DailyMail to do a before and after article analysing the poor performance of this renovation investment? I know they can do it! They have done it here: http://www.dailymail.co.uk/news/article-3237153/Even-changing-rooms-wasn-t-No-one-wants-buy-Laurence-Llewelyn-Bowen-s-1-6million-mansion-swapped-garish-decor-neutral-tones.html ripped out the solid wood kitchen and replaced it with an Essex-style white gloss carbuncle for one. Quote Link to comment Share on other sites More sharing options...
AvoidDebt Posted April 27, 2017 Share Posted April 27, 2017 (edited) Low hopes to sell 500,000 tickets to raise money equivalent to the value of the home to avoid repossession. He has had 340,000 entries to date. “I knew that people had done this before but had problems, and I needed to make sure everything was above board and legal, so you can enter for free if you wish to,” he said. https://www.theguardian.com/uk-news/2017/apr/26/raffle-ticket-lord-lady-melling-manor At no point does the journo ask the obvious question, well how many of the 340k entries are the free option? Publicity could be double edged on this one. Surely if anyone is stupid enough to buy this they may cotton onto the fact well how are you ever going to sell it? Last vendor had to run an international raffle with global media coverage, good luck rerunning that. Edited April 27, 2017 by AvoidDebt Quote Link to comment Share on other sites More sharing options...
spacedin Posted April 27, 2017 Share Posted April 27, 2017 (edited) 2 hours ago, AvoidDebt said: At no point does the journo ask the obvious question, well how many of the 340k entries are the free option? Not many. Unless he has an army of people opening envelopes. Edited April 27, 2017 by spacedin Quote Link to comment Share on other sites More sharing options...
EnglishinWales Posted April 27, 2017 Share Posted April 27, 2017 He says he is doing this to give young people a chance?? Well I am a young person and I find it highly offensive. We need affordable housing not games. Quote Link to comment Share on other sites More sharing options...
Sandwiches33 Posted April 27, 2017 Share Posted April 27, 2017 There is no way he can heat and light that big ******* on a web designers salary even if he had no mortgage. The garden alone looks like a fulltime job. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 27, 2017 Share Posted April 27, 2017 3 hours ago, AvoidDebt said: Low hopes to sell 500,000 tickets to raise money equivalent to the value of the home to avoid repossession. He has had 340,000 entries to date. “I knew that people had done this before but had problems, and I needed to make sure everything was above board and legal, so you can enter for free if you wish to,” he said. https://www.theguardian.com/uk-news/2017/apr/26/raffle-ticket-lord-lady-melling-manor At no point does the journo ask the obvious question, well how many of the 340k entries are the free option? Publicity could be double edged on this one. Surely if anyone is stupid enough to buy this they may cotton onto the fact well how are you ever going to sell it? Last vendor had to run an international raffle with global media coverage, good luck rerunning that. This sort of thing was happening in 2007 as people got desperate. Given wages have gone no where and prices are even more insane I think we can safely safe peak mania is here Quote Link to comment Share on other sites More sharing options...
Digsby Posted August 16, 2017 Share Posted August 16, 2017 It finally went: https://www.theguardian.com/uk-news/2017/aug/15/woman-wins-800000-lancashire-country-manor-in-raffle Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 16, 2017 Share Posted August 16, 2017 20 minutes ago, Digsby said: It finally went: https://www.theguardian.com/uk-news/2017/aug/15/woman-wins-800000-lancashire-country-manor-in-raffle So they sold a £400K house for £900K via a raffle. The mind boggles !!!! Everyone should be doing this. I wonder if the lucky winner can afford the upkeep and who she'll sell to. Even if she charges £4 she'll double her money. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted August 17, 2017 Share Posted August 17, 2017 On 16/08/2017 at 7:25 AM, TheCountOfNowhere said: So they sold a £400K house for £900K via a raffle. The mind boggles !!!! Everyone should be doing this. I wonder if the lucky winner can afford the upkeep and who she'll sell to. Even if she charges £4 she'll double her money. I think the article mentions he is or going to run other raffles. To include the title is an interesting selling point. I wonder if they always planned to raffle it off? Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted August 17, 2017 Share Posted August 17, 2017 It looks to me like these competitions are skating on thin ice and could be considered an illegal lottery, which would be taxable. Under the Gambling Act 2005, a competition will not be a lottery if it satisfies the "skill" test or if no payment is required to enter. I don't think an easy multiple choice question with only 3 options is very "skillful" If a competition does not satisfy the skill requirement, it will be a lottery unless either no payment is required to participate in the competition (whether this is to enter the competition, or to find out if you have won, or to collect a prize) or there is an alternative free entry route. It is irrelevant whether the payment benefits the person running the competition or someone else, e.g. a telecoms company providing the premium-rate telephone number used to participate in the competition. https://www.out-law.com/page-6780 To enter this competition for free involves paying for a first class stamp - so not free The Gambling Commission has said that it expects to monitor the boundaries between lotteries, betting and gaming on the one hand, and skill competitions and prize draws on the other, and that it will act where schemes are organised which the Commission considers amount to unlicensed and therefore illegal lotteries. http://www.gamblingcommission.gov.uk/for-the-public/For-the-public.aspx Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted August 17, 2017 Share Posted August 17, 2017 Something else that seems suspicious, they sold 500,000 tickets and then We picked our winner by random number generator and then actually managed to contact the winner within around 15 minutes! How exactly did they do that? it seems like a lot of tickets to wade through. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted August 17, 2017 Share Posted August 17, 2017 The BBc feature shows tubs of what appear to be raffle tickets http://www.bbc.co.uk/news/av/uk-england-40950357/the-845000-mansion-sold-for-just-2 Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 17, 2017 Share Posted August 17, 2017 18 minutes ago, Ash4781 said: The BBc feature shows tubs of what appear to be raffle tickets http://www.bbc.co.uk/news/av/uk-england-40950357/the-845000-mansion-sold-for-just-2 BBC takign great delight in saying the property was worth £800K+ Whereas in reality they couldnt f**king sell it and was probably worth 400. Someone ought to complain about this nonsense. Quote Link to comment Share on other sites More sharing options...
Princekie Posted August 17, 2017 Share Posted August 17, 2017 Melling is actually very near to where I live, and in fact I very nearly bought a house in the village when house prices were at a reasonable level. The village itself is the pits, unless you enjoy a village with zero facilities and an average age somewhere in the 60s. There's no local pub (nearest one around two miles away), patchy bus service that's in the pipeline to get axed (like the one over the river did...cutbacks), and....well bugger all else. Hmmm not many sights there unless one can count the large TV mast that overlooks the village. On the flip side, it's situated in a rural location, close to the North Yorkshire border. Not a lot to recommend it for really, unless you enjoy solitude. Quote Link to comment Share on other sites More sharing options...
Monkey Posted August 17, 2017 Share Posted August 17, 2017 On 03/02/2017 at 8:40 PM, Patient London FTB said: Saw one of the 'couple throw in sports car to help sell their house' stories the other day as well Been waiting for these types of things to come into play..... Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted August 17, 2017 Share Posted August 17, 2017 Will it be listed on the Land registry as sold for £2 ? Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted August 17, 2017 Share Posted August 17, 2017 1 hour ago, Ash4781 said: The BBc feature shows tubs of what appear to be raffle tickets http://www.bbc.co.uk/news/av/uk-england-40950357/the-845000-mansion-sold-for-just-2 That looks like 9 small baskets filled with tickets, doesnt look like more than a couple of thousand. They were selling £2 tickets via paypal in blocks of 1, 5, 10 and 20 so if most people were gambling £40 they would only need 2500 sales. If this is legal they pulled it off pretty well Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted August 17, 2017 Share Posted August 17, 2017 street view https://goo.gl/maps/uZsnCcVueLQ2 Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted August 17, 2017 Share Posted August 17, 2017 1 hour ago, Habeas Domus said: Will it be listed on the Land registry as sold for £2 ? End of terrace, for 800k in Lancs. No wonder they couldnt shift it. Only worth £2 anyway. She sold it for its true value. Quote Link to comment Share on other sites More sharing options...
Guest Posted August 17, 2017 Share Posted August 17, 2017 25 minutes ago, GreenDevil said: End of terrace, for 800k in Lancs. No wonder they couldnt shift it. Only worth £2 anyway. She sold it for its true value. When new owner comes to sell it on... Will that mean a massive CGT bill?! Quote Link to comment Share on other sites More sharing options...
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