£3000 for a two-bed flat in Bournemouth? How does that work?

jimc_2

I've just been told about this offer of a two-bed flat in Bournemouth for £3000. How does it work? (and is it legal?)

It seems to be a scheme to transfer the deeds for a fee and the buyer takes over the mortgage. I'd love to hear people's comments. It seems to cut out all sort of fees and charges. I wonder if this counts as marketing and needing a HIP?

GDB2222

It's all fine. He's really selling for £148k if you allow for the mortgage you have to take over. Wait a bit longer and he'll be offering you £3k to take it off his hands! It certainly does need all the paperwork that goes with an ordinary sale, so i guess an HIP is need.

SquatNow

You can't "transfer" a mortgage over to someone else... it's doesn' work like that. The buyer would need to get a mortgage for £153,000.

I can't tell what the places value is, but anything less than £200k and you'de struggle to get a mortgage unless you had cash for a big despoit.

Mozette

It won't cut out stamp duty, whatever the vendor may think.

Stuball_2

Its under the new stamp duty threshold

Woby_Tide

a 2 bed new build in Pokesdown. That's going to hold it's value in the current Bournemouth 2 bed market *cough*

meester

what a nutcase:

being rented out for £675 a month furnished
The mortgage is just under £730pcm, there is £200 ground rent per year and £275 service charge twice yearly.

I am simply looking for £3000

eh?

He wants to be PAID to take this moneypit off his hands, which is most likely already in negative equity, and is being subsidised to the tune of hundreds per month?

gauly

In the same postcode there is a two bed flat for sale for £127K and he wants someone to buy this one for over £148K!!! Doesn't look like much of a bargain to me. Plus this one is being sold with tenants in which should devalue it (well, unless you want to rent it out so you can lose money too).

Fortunately this scam of his/hers isn't going to work anyway, even if he/she finds a victim who really believes they are buying a flat for £3000. You can't just "transfer" a mortgage. The new buyer would have to get a new buy-to-let mortgage out and you can't get one in the current market unless the rent more than the monthly payments.

jimc_2

I agree with the comments so far. I wasn't promoting the scheme. (I'm NOT the landlord and this isn't spam!) I was wondering about his(her?) comment that:

"The mortgage company I am with will have to approve you to be able to manage the mortgage. If you are self employed or an investor this should be fine"

This as squatnow comments just ain't so from what I've always been told. Is there some sort of way of allocating the mortgage payments to another person. (I mean paying another persons existing mortgage whilst legally hanging onto the deeds?)

Just interested to see if this is a scheme that could be made to work.

lynzpower

"The mortgage company I am with will have to approve you to be able to manage the mortgage. If you are self employed or an investor this should be fine"

basically it sounds like you would join up to his mortgage ( as a co-mortgageee) then he would bow out.

At the end of the day this is a private sale and he is trying to do his best to get shot. Totally take your point woby about the Bournemouth market- cough cough cough, plenty on sale there.

chewmylegoff

jimc wrote: »

I've just been told about this offer of a two-bed flat in Bournemouth for £3000. How does it work? (and is it legal?)

It seems to be a scheme to transfer the deeds for a fee and the buyer takes over the mortgage. I'd love to hear people's comments. It seems to cut out all sort of fees and charges. I wonder if this counts as marketing and needing a HIP?

in summary the seller is in negative equity with a BTL property that is losing money. he is pretending he has equity in the property but his valuation does not meet with current market values.

he can't sell the flat on the open market because the sale price would not cover the mortgage, therefore he's trying to find some mug to take his liabilities off his hands.

as for cutting out fees and charges - it certainly doesn't cut out any fees and charges for the buyer. you'd be stupid to do it without a solicitor and a survey. you have to pay him £3k so negating any saving on mortgage arrangement / broking / valuation fee.