Screw the old lady and the first time buyer with one dodgy transaction

hazyjo

So is the builder selling it now? If he's only actually owned it for 3 weeks, anyone needing a mortgage will probably be stuffed. He'll need to own it for I think at least 6 months (possibly 12) unless he's selling to a cash buyer.

Jx

DRP

hazyjo wrote: »

So is the builder selling it now? If he's only actually owned it for 3 weeks, anyone needing a mortgage will probably be stuffed. He'll need to own it for I think at least 6 months (possibly 12) unless he's selling to a cash buyer.

Jx

I have heard of this previously, but do not know the basis - is this some kind of rule that all mortgage companies will simply refuse to lend - or will they consider individual cases?

Debbie4121

Not much help to the OP, but...

My gran died, leaving her house to my mum. House was very old and in a real state, and needed completely gutting and starting again. Too much for mum to take on, plus she didn't really want to live where it was, so she decided to sell. She got a local agent in, who viewed, went away and a day or so later rang her to say he could sell the house to a local builder for £100k. At this point house was not on market, and mum luckily hadn't signed anything. She was all for accepting as she just wanted to get rid of it - after all, £100k is a lot of money when you don't have any and considering the state the house was in.

We had moved out of the area some 20 years ago so were unsure of the local property prices, but my husband thought this was all a bit odd and he didn't think it was quite enough. To cut a long story short, he got another agent in, someone he had used in the past, the house went on the market properly and she accepted the highest offer and got £145k.

The first agent looked a bit crestfallen when my husband told him exactly where he could stick his offer. Just goes to show you can't trust anyone!!

Dan-Dan

When our Grandma passed , we had three EA`s round to give an estimated sale value ,. two were where we expected , with the same intentiones of last ditch sale price , the third of them quoted at 45% less than them , he must have thought we come down with the last shower , we knew if we held out it would go to a couple with a bit of money and time for a project on their hands , and for a fair price , which it did , not to there mate Bob to knock out 6 months later at 80k more than we could ever have hoped to sell it for

lisyloo

No it's not fraud.
Anyone can sell their personal posessions to someone else at a price agreed between them.
Elderly people who are not fit to make decisions (not saying this is the case here) can get power of attorney set up, but often many are reluctant to do so.
Shall this lady didn't have family to protect her, but I don't think there is anything illegal.
What is it that you think is illegal?

hazyjo

DRP wrote: »

I have heard of this previously, but do not know the basis - is this some kind of rule that all mortgage companies will simply refuse to lend - or will they consider individual cases?

As far as I know, it's a rule that most, if not all, mortgage companies abide by. Never used to be the case. Not sure if it's some sort of law now, but not to my knowledge. Could always ring round a few to check their rules, or try a bit of googling maybe.

Jx

maninthestreet

You say it is over-priced at £230K - what do you think it's actually worth? £175K for a quick cash sale to a builder may not be an unreasonable figure.

isisini

Our house was done up by a builder before we bought it - it is indeed a rule that they have to own it for six months before most banks will lend on it. I guess it's to prevent flipping.

We were about two weeks short of six months when we got to exchange and it caused quite a lot of wrangling although it did not ultimately scupper the sale. The seller had to prove to our lender the value of the work he'd had done - he had to forward all invoices of the work. Although stressful, it's immensely helpful having a complete record of the works.