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Neighbour selling house to child at below market price
3mu
Posts: 7 Forumite
Hi
Long time browser, now need to pick the brains of MSE
I live on a nice cul-de-sac, 3 or 4 bedroom homes, mainly elderly couples. House prices sit around the £250k mark.
One couple have moved away to retire elsewhere and are selling their home to their children. On talking to them we have discovered that they are selling at a price that is shockingly lower than the market price even bearing in mind recent reset of the house price market.
I am concerned that the land registry figures for the road will now show this much lower price, this will be used by a surveyor and therefore the value of other houses and my LTV will change for the worse when I need to remortgage in a year or two. Were I to sell then the potential buyer would use this lower price to negotiate down on a sale.
Should I worry? What can I do to maintain the potential value of my house? Is what they are doing legal?
3mu
Long time browser, now need to pick the brains of MSE
I live on a nice cul-de-sac, 3 or 4 bedroom homes, mainly elderly couples. House prices sit around the £250k mark.
One couple have moved away to retire elsewhere and are selling their home to their children. On talking to them we have discovered that they are selling at a price that is shockingly lower than the market price even bearing in mind recent reset of the house price market.
I am concerned that the land registry figures for the road will now show this much lower price, this will be used by a surveyor and therefore the value of other houses and my LTV will change for the worse when I need to remortgage in a year or two. Were I to sell then the potential buyer would use this lower price to negotiate down on a sale.
Should I worry? What can I do to maintain the potential value of my house? Is what they are doing legal?
3mu
0
Comments
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They can sell to whomever they want, at whatever price they want.
If, when you try to sell your house, someone brings up the price of theirs, you know the story, & can tell them that it was an inter family sale at below market value.
The children may well find they have to pay stamp duty at full market value though.0 -
Surveyors unlikely to look at Land Registry details. They ring up local estate agents to check values.
What neighbours are doing is perfectly legal.
It often happens that apparently "incorrect" figures are shown - e.g. if couple split up and one buys the other out the figure might be very low because it could be simply half of the difference between the mortgage and the present market value.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
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They may have issues if they require a mortgage as they will send their own valuator round.0
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morganedge wrote: »lol, nope.
Why not ..... ?0 -
firstaspect wrote: »They may have issues if they require a mortgage as they will send their own valuator round.
Why? They'll be taking lending of far less than any surveyor's value...0 -
OH NOES!! Think of the house prices!!
They can sell it at whatever price they want. If they have issues at a later date that's their issue (e.g. trying to avoid paying for care home fees).0 -
Pastures new, I have no problem with a lower price sale, I just dont want the building society to say to me that my LTV is now 90% and not 65% so I have to pay many more %'s on my new mortgage.
3mu0 -
Ah, re-mortgage. Didn't spot that bit.Pastures new, I have no problem with a lower price sale, I just dont want the building society to say to me that my LTV is now 90% and not 65% so I have to pay many more %'s on my new mortgage.
3mu
I come from the generation that got a mortgage ..... and didn't keep remortgaging.0
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