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gruffydd

Vendor Gifted Cashback On Second Hand Home?

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Pontardulais, Swansea

£ 5,000 VENDOR GIFTED CASH BACK. We offer for sale this well presented detached home situated within the village of Pontarddulais within very easy access to all local amenities including shopping centre at Pontarddulais, primary...

HUH!

Edited by gruffydd

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Pontardulais, Swansea

£ 5,000 VENDOR GIFTED CASH BACK. We offer for sale this well presented detached home situated within the village of Pontarddulais within very easy access to all local amenities including shopping centre at Pontarddulais, primary...

HUH!

But why...?

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Signs of distress everywhere down Swansea-Llanelli-Carmarthen - on the same page as above:

Partly built detached 4/5 bedroomed dormer property set on a level plot located on the edge of the rural village of Rhydcymerau

Oakway, Penllergaer

PLEASE NOTE THERE IS NO CHAIN INVOLVED WITH THIS PROPERTY. We offer for sale this well presented three bedroom detached home in the popular ' Parc Penllergaer ' development on the outskirts of Penllergaer.

Saron Close, Penyrheol

PLEASE NOTE THERE IS NO CAHIN INVOLVED WITH THIS PROPERTY. We offer for sale this three bedroom detached family home in Penyrheol. The property benefits from gas central heating system,

And that was from 2 pages on fish4homes!

Edited by gruffydd

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But why...?

To improve the chance of someone being able to get a mortgage on it (and therefore buy it) I guess. Plenty of developers are still doing this so it looks like solicitors/mortgage companies are still happy enough to sign these deals off. Seems pretty dubious to me though.

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But on a second-hand property? Is this a new sales technique? A new way of disguising price falls.

I don't think there's anything in principle different between new and second hand. This issue is that it's harder to get a mortgage without a big deposit now than it used to be so that reduces the pool of potential buyers for each house. If you offer 5K cash back after the deal has completed (or even on the day of completion) rather than 5K off the price of the house it might, in theory, make it easier to find a buyer. It's all quite dodgy since, at some point, someone is going to lie about the true price paid for the house but the mortgage companies have been going along with it for years without apparently caring about it so maybe this lot will get away with it too.

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But on a second-hand property? Is this a new sales technique? A new way of disguising price falls.

There are no lenders accepting vendor gifted deposits to my knowledge.

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Will the lender be informed of this financial jiggery pokery? :unsure:

What sale figure will thr LR show? :angry:

Providing an approved surveyor comes through with the required valuation, then a junior employee at the mortgage company will push to get the deal signed off in order to meet a personal monthly sales target.

The LR figure shows the notional transaction price, not the lower effective price.

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There are no lenders accepting vendor gifted deposits to my knowledge.

A fair few of my friends bought their first places like this back in 92/93. Not quite sure how it swung with the mortagage companies but it must of worked somehow. IIRC the amounts them were pretty big - one guy got a 'gifted deposit' of £5k on a place he bought for £32k - I dont think that was unheard of elsewhere.

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The LR figure shows the notional transaction price, not the lower effective price.

I believe a few solicitors started to question this - for SDLT purposes.

Then there are the CGT implications, where relevant.

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  • 295 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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