Cash buyers only property because its a First time buyer restriction?

nottingham13

Hi

There is a property in the paper today and it is going to go for auction because its a first time buyer property and according to the estate agent no one can get a mortagage on it because it has a 1st time buyer restriction on it.

It was on the market for 170K and kept on having offers accepted on it and then kept on re-appearing in the paper and the price kept on fallling.

Does this sound right?

benood

Sounds like the agent is desperately coming up with a load of old flannel in the hope someone falls for it.

jenny74

have you got a rm link or a link to the papers relevant internet page?

nottingham13

http://www.rightmove.co.uk/property-for-sale/property-25041284.html?locationIdentifier=REGION%5E1384&maxPrice=80000&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E1384%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D80000%26maxDaysSinceAdded%3D%26retirement%3D%26partBuyPartRent%3Dfalse%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse%26x%3D119%26y%3D15

But what confuses me is there are similar properties nearby with 1st time buyer restriction and this is seems to be the only one affected.

carefullycautious

I can understand the restrictions as to local people only being able to buy. But to demand cash only would be out of reach for most folks as the economy is dire in cornwall. Methinks only a buyer with a rich mum and dad would be able to come up with this. It just shows that there is no interest due to it going to auction.

PasturesNew

The details say it's a Locals Only restriction. A local first time buyer would be able to get a mortgage on it ... just probably not at that price.

What's the address? How much did they pay for it?

PasturesNew

Edit: Got it. Here are the previous prices in that road and that one isn't listed as sold since 2000, so they paid a low first time buyer price and now want a high price in an area that has little employment, during a crash, in a recession.

http://www.houseprices.co.uk/e.php?q=PL27+6UT&n=10

PasturesNew

Edit: They paid £37,000 for it in 1995. All they had to do to sell it was drop the price.

Guide price at auction is £60k: http://www.countrywidepropertyauctions.co.uk/property-details.php?pcode=CHL090820&dbtype=&rps=cherpa&pamend=1248336257

I could be tempted at that price. I can easily get round the local restriction ....

Cannon_Fodder

£170k was always insane. They expected to get 4.6 times what they paid for it in Q3 1995 (£37k) ?...even at peak it should have been £130k max according to Nationwide's calculator.

Was on in March for just under £100k, now being £60k is a bargain for some FTB.

I think the cash buyer requirement is to make sure they get the money asap, not related to the Local FTB clause.

PasturesNew

Yeah, any reference to being a cash buyer is most likely because it's in an auction and most FTBs might not be in a position to complete in time.

When you buy at auction, you have X days to complete - or you lose your deposit, which you have to pay right there at the auction. So you'd have to be a "ready to go/all clued up" FTB to have the mortgage ready, the deposit available on the auction day, the solicitor and mortgage company ready/able to complete in time. Also, X days, while usually 28 might even be just 10-14 days to complete.... and for many mortgages they couldn't even get the surveyor out in time.

You'd need somebody else to bankroll it for you, then get a mortgage after it's been bought in order to pay back whoever bankrolled you.

nottingham13

But wadebridge in cornwall is a very popular area. There is a property just down the road which is a lot smaller going for 120K which also has a 1st time buyer restriction.

please see link
http://www.rightmove.co.uk/property-for-sale/property-24667733.html?locationIdentifier=REGION%5E1384&maxPrice=130000&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E1384%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D130000%26maxDaysSinceAdded%3D%26retirement%3D%26partBuyPartRent%3Dfalse%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse%26x%3D118%26y%3D1

property prices in wadebridge has really exploded over the last 10 years. For 130k you would only get a 2 bed flat, if you are lucky.