BMV/Below Market Value Purchases

luckyfool

Any brokers also getting spammed from companies plugging lists of Below Market Value properties which can be bought at 75% of their RICS valuation figures (and explicitly saying that you could use the discount as a deposit).

Any ideas as to how these guys place this type of case without committing fraud or using a dodgy solicitor. I don't know of any lender who would look at this type of deal and lend on the valuation without a deposit coming from the buyer unless it was a concessionary purchase from a family member/landlord (apart from Halifax maybe), and certainly no lenders that would do it on a buy to let. Am I being obtuse or is the only way to do these deals without putting money down to either commit fraud, or bridge on some ridiculous rate of interest for 6 months and hope that you can remortgage out of it at that point.

Would be interested to hear other brokers/knowledgable parties thoughts on these scenarios.

happybroker

BM were cool with it, but I haven't spoken to them recently on the subject. C&G also said that they were happy providing a deposit actually changed hands.

I think the firm you may be referring to act for the vendor in finding a buyer and then pay the deposit of 25%. On completion they bill the vendor for 30% which covers costs and referral fees etc. You have to use their solicitors and they also liase with the surveyor so it does all smack of being somewhat fudged.

I know what you mean though, "if it seems too good to be true it generally is" and all that.