% change in the past 12-18 months - House price in Midlands/Staffordshire

HARSA

No Worries. I am definitely not one of them (who ever they are), this is a real situation. I initially was going to pay off my half towards the end of this year and buy a bigger property a year or two later using savings + equity

I appreciate it's only 5K difference but the properties that the HA valuer used as a comparison sold anywhere between 12 & 18 months ago. The other properties they took into account are properties that have been on the market for a while and surely that must the reason why they still haven't sold.

Anyway I will try & get them to reduce the £5 if they refuse then I will just pay-off my half and sell it back to someone on their waiting list.

the_flying_pig

HARSA wrote: »

No Worries. I am definitely not one of them (who ever they are), this is a real situation. I initially was going to pay off my half towards the end of this year and buy a bigger property a year or two later using savings + equity

I appreciate it's only 5K difference but the properties that the HA valuer used as a comparison sold anywhere between 12 & 18 months ago. The other properties they took into account are properties that have been on the market for a while and surely that must the reason why they still haven't sold.

Anyway I will try & get them to reduce the £5 if they refuse then I will just pay-off my half and sell it back to someone on their waiting list.

Yeah, £5K is a hefty sum, obviously. You say "only" but it's not really logical to think about price differences in % terms, only absolute... e.g. let's say that a new ford fiesta is usually priced at £9k, if some place was selling them for £4k [more than a 50% cut] there'd be a huge stampede to buy there & people would be prepared to sink endless amounts of time into doing research, travel whatever distance, etc, to get them at that price but the saving of £5k would be just the same.

I suppose I find it a bit odd, with SO having been pushed so heavily for so long, that there isn't some kind of set mechanistic formula for calculating buyout values [e.g. they'll index the price you initially paid by the land refistry index for your area]. Without that I don't see what's to stop unreasonable behaviour by the HA [holding out for a stupidly high price] or you [insisting on only paying a stupidly low price] when SO was presumably conceived as a stepping stone to full ownership, which would tend to favour a deal being done as soon as possible on terms that are fair & transparent to both parties. Apart from anything else it seems wasteful for the HA to be commissioning a valuation [cost a few hundred quid, right? and the negotiation with you must need someone fairly skilled, with a fair bit of authority behind them, to carry out] when you might not accept, & might want to try again in a few years' time, requiring another valuation.

HARSA

the_flying_pig wrote: »

Yeah, £5K is a hefty sum, obviously. You say "only" but it's not really logical to think about price differences in % terms, only absolute... e.g. let's say that a new ford fiesta is usually priced at £9k, if some place was selling them for £4k [more than a 50% cut] there'd be a huge stampede to buy there & people would be prepared to sink endless amounts of time into doing research, travel whatever distance, etc, to get them at that price but the saving of £5k would be just the same.

I suppose I find it a bit odd, with SO having been pushed so heavily for so long, that there isn't some kind of set mechanistic formula for calculating buyout values [e.g. they'll index the price you initially paid by the land refistry index for your area]. Without that I don't see what's to stop unreasonable behaviour by the HA [holding out for a stupidly high price] or you [insisting on only paying a stupidly low price] when SO was presumably conceived as a stepping stone to full ownership, which would tend to favour a deal being done as soon as possible on terms that are fair & transparent to both parties. Apart from anything else it seems wasteful for the HA to be commissioning a valuation [cost a few hundred quid, right? and the negotiation with you must need someone fairly skilled, with a fair bit of authority behind them, to carry out] when you might not accept, & might want to try again in a few years' time, requiring another valuation.

I am no wiser after reading your post if you are suggesting that I find pay the extra 5K or not.

I perfectly agree that £5K is not a small amount but when you consider that I may well be taking on the HA risk on the 5K. Let say I pay extra £5K and couple of years when I come to selling property prices have dropped even further does that not mean that the HA has benifitted? Also take into account the the interest I have to pay on the £5K.

Paying off my share now is just as good - I current overpay by almost £850 p/m. So come couple of years time when I wish to buy a bigger property someone else on their waiting list can buy the property based on the HA valuation - which I know can go either drop or increase.

However which ever way property prices go isn't all relative to the next property I buy?

What is even more annoying is that for doing very little over the last 9/10 years the HA have recieved nearly £20K in rent from me. This coupled with the usual 20% discount they would have bought the property for from the builder gives them a very good return on their investment.

I fail to understand why they can't & wouldn't consider taking a hit on £5k.

Graham_Devon

nollag2006 wrote: »

Graham lampooning poor syntax from others???

Priceless

Erm....what?