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Mikhail Liebenstein

Desperate Marketing From Haart Estate Agents

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<a href="http://www.haart.co.uk/" target="_blank">http://www.haart.co.uk/ </a>

Just found this offer on the Haart website (2nd folder shaped dialogue box on the left) . I imagine this is the perfect facility for offloading buy to lets. Rich BTLer who has lots of equity, lure in FTB with gifted deposit. Hmmm haven't seen that tried before.

I suggest making a complaint to the Advertising Standards Authority about that:

http://www.asa.org.uk/asa/how_to_complain/complaints_form/

Edited by thecrashingisles

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Surely there is tax implications here? You can't gift more then a certain amount and I would suggest a %5 deposit is way way over that margin.

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I've seen his in the local property pages with Haart, and now a few other EAs have joined in the scam.

And, yes, it's a scam.... One property in particular had a price of £99,950, with "5% deposit paid!" written across it, and then below in the summary particulars, the first line says "deposit paid, first time buyers pay £106,950"

Which means that even after a 5% deposit, a FTBer is paying more than the quoted price, and they're not getting it for £99,950 less the 5%, the vendors are just fudging the figures to achieve the full sale price they want. :angry:

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I've seen his in the local property pages with Haart, and now a few other EAs have joined in the scam.

And, yes, it's a scam.... One property in particular had a price of £99,950, with "5% deposit paid!" written across it, and then below in the summary particulars, the first line says "deposit paid, first time buyers pay £106,950"

Which means that even after a 5% deposit, a FTBer is paying more than the quoted price, and they're not getting it for £99,950 less the 5%, the vendors are just fudging the figures to achieve the full sale price they want. :angry:

But it will still have to be valued by the mortagee(?) and may be found to be overpriced, thus limiting the amount of mortgage available.

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What is the legal position on 'Cashback' offers? My local scum EA has recently ramped up such offers to keep asking prices up. Take a look at this example below.

http://www.remax-scotland.com/PublicListin...1A5985467AC2EED

87,000 with 5,000 cashback....................... we don't want those asking prices to fall

House been on the market for months and with this cashback incentive for a few months. RE MAX Coatbridge has quite a few properties offering such deals. Is this legal?

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What is the legal position on 'Cashback' offers? My local scum EA has recently ramped up such offers to keep asking prices up. Take a look at this example below.

http://www.remax-scotland.com/PublicListin...1A5985467AC2EED

87,000 with 5,000 cashback....................... we don't want those asking prices to fall

House been on the market for months and with this cashback incentive for a few months. RE MAX Coatbridge has quite a few properties offering such deals. Is this legal?

SHAMELESS BUMPPPPPPPPPPPPPPPPPPPPPP!!!!!!!!!!!!!!!

Anyone help me out with the above? A would love some ammunition the next time I am in there arguing about house prices?

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Surely there is tax implications here? You can't gift more then a certain amount and I would suggest a %5 deposit is way way over that margin.

Its about 50K so no problem there. The problem is the fraudulent nature of the valuation.

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The 5% gifted deposit is legal provided both solicitors and the bank lending the money are actually informed. If your solicitor does not declare the scheme to the bank / other solicitor then it is illegal. (fraud actually)

For this to work the valuation has to be agreed at the FULL price by the banks valuer, so if the valuer agrees a house is worth 100k INCLUDING the 5% deposit then there is nothing wrong with this.

It is just a way to help people with little or no deposit buy a house!

If someone adds the 5% to the value in the hope of getting the price they want then this just won't work, the house will be downvalued and the 5% deposit is worthless.

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The 5% gifted deposit is legal provided both solicitors and the bank lending the money are actually informed. If your solicitor does not declare the scheme to the bank / other solicitor then it is illegal. (fraud actually)

For this to work the valuation has to be agreed at the FULL price by the banks valuer, so if the valuer agrees a house is worth 100k INCLUDING the 5% deposit then there is nothing wrong with this.

It is just a way to help people with little or no deposit buy a house!

If someone adds the 5% to the value in the hope of getting the price they want then this just won't work, the house will be downvalued and the 5% deposit is worthless.

As a concerned local person, do you think it would be worthwhile contacting RE MAX and asking just how this cashback incentive they are running is being accounted for by the Valuer, Mortgage Company, land Registry etc... Or would this just be stirring for no reason??

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Its about 50K so no problem there. The problem is the fraudulent nature of the valuation.

Well, I just lodged my issues with the above on the FSA's website. ;)

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The 5% gifted deposit is legal provided both solicitors and the bank lending the money are actually informed. If your solicitor does not declare the scheme to the bank / other solicitor then it is illegal. (fraud actually)

For this to work the valuation has to be agreed at the FULL price by the banks valuer, so if the valuer agrees a house is worth 100k INCLUDING the 5% deposit then there is nothing wrong with this.

It is just a way to help people with little or no deposit buy a house!

If someone adds the 5% to the value in the hope of getting the price they want then this just won't work, the house will be downvalued and the 5% deposit is worthless.

I wonder if whoever buys this mortgage from the bank in the wholesale market is also told about the circumstances? The only reason to do this is so that a 100% LTV mortgage will look like a 95% LTV mortgage, making it easier for a FTB (who would normally not have a very big deposit) to get a mortgage. The FSA's PR department has gone into overdrive in the past couple of weeks to show that they're dealing with mortgage fraud. How do they feel about these deals?

Edited by RichC

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  • 396 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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