Confused over property price on houseprice sites

tlc678910

Hi,
Your sister only needed to pay £250K for a £300k house as 50k of the house already belonged to her from the will.

Imagine if I inherited half a 300k house and my sister the other half. I could buy my sisters half (and own the whole house) for £150k. That could be, for example, a 50k deposit and 100k mortgage. The sale would be recorded as the 150k transaction. I wouldn't need to pay anything for the part I own from the inheritance.

Tlc

chunkytfg

babyblade41 wrote: »

yes but OP said her sister share (50K) went into the purchase of the property as well so it's 6 x50

But I suppose OP's sister was not obliged to put her 50k into it if she didn't want to..still a bit odd though

6 siblings getting 50k each of a 300k house.

100k from mortgage + 100k from sister savings plus 50k gift from OP = 250k

The 200k is distributed between the other 4 siblings as OP has gifted 50k of estate to sister buying. The remaining 50k in the house the sister already owns as she inherited it so it doesn't need to be 'paid for' hence price shows as 250k.

I could be wrong but it seems like the likely way that it was done to show the price as 250k

gocat

Bossypants wrote: »

Have you asked your sister about it? Any chance the extra might have gone to stamp duty, if she already owns a property?

sister that purchased property is as clueless as me to where the other £50K has gone. It is her first purchase so didnt have to pay SD.

babyblade41

Bossypants wrote: »

True, I should have worded my post differently, I just meant stamp as an example of broader costs. I'm in the process of buying a probate property at the moment, and I was only willing to come up to £30k below the top of my budget for it, because once purchase fees are factored in and the fact that it needs *everything* doing in order to be comfortable, it would be costing me £30k more than the sale price.

If that is the case, it would be strange that the sibling who gifted sister £50k wasn't told, though.

That's what is confusing me... why did sister gift the extra 50k if it wasn't necessary ..in that case then she would need to give the 50k back ..or am I confusing things totally

gocat

chunkytfg wrote: »

6 siblings getting 50k each of a 300k house.

100k from mortgage + 100k from sister savings plus 50k gift from OP = 250k

The 200k is distributed between the other 4 siblings as OP has gifted 50k of estate to sister buying. The remaining 50k in the house the sister already owns as she inherited it so it doesn't need to be 'paid for' hence price shows as 250k.

I could be wrong but it seems like the likely way that it was done to show the price as 250k

This makes sense but annoys me that solicitor tells Land registry that property was sold for £250K , when it was sold for £300K, because if sister was to sell the property in say 10 years time it would look strange that property was sold for £250K in 2018 when it was worth £300K. And could reflect on property prices near sisters.

chunkytfg

gocat wrote: »

This makes sense but annoys me that solicitor tells Land registry that property was sold for £250K , when it was sold for £300K, because if sister was to sell the property in say 10 years time it would look strange that property was sold for £250K in 2018 when it was worth £300K. And could reflect on property prices near sisters.

It will take more than 1 house selling cheap for it to affect prices. all around the country houses 'sell' for half the value when couples split up!

tlc678910

gocat wrote: »

This makes sense but annoys me that solicitor tells Land registry that property was sold for £250K , when it was sold for £300K, because if sister was to sell the property in say 10 years time it would look strange that property was sold for £250K in 2018 when it was worth £300K. And could reflect on property prices near sisters.

Hi,
Your sister would just mention it was bought under value due to inheritance, but the price she paid isn't relevant to the value at the time. For example sometimes houses have doubled in value over just a few years so the starting value doesn't decide the future value.

gocat

chunkytfg wrote: »

It will take more than 1 house feeling cheap for it to affect prices. all around the country houses 'sell' for half the value when couples split up!

So that makes the Land registry, and the likes of zoopla, rightmove unreliable then. Guess thats an whole new thread lol.

Thanks for all the replies. Has sort of answered where the "missing" £50K has probably gone.

davidmcn

gocat wrote: »

This makes sense but annoys me that solicitor tells Land registry that property was sold for £250K , when it was sold for £300K, because if sister was to sell the property in say 10 years time it would look strange that property was sold for £250K in 2018 when it was worth £300K.

It's easy enough for her to explain the circumstances, and entirely proper of the solicitors to narrate the price for the 5/6ths of the property she bought as being £250k. Not all property transactions are arm's-length sales of 100% of the property, and any valuers etc looking at the records know this. I wouldn't worry about it.

chunkytfg

gocat wrote: »

So that makes the Land registry, and the likes of zoopla, rightmove unreliable then. Guess thats an whole new thread lol.

Thanks for all the replies. Has sort of answered where the "missing" £50K has probably gone.

LR only tell you what a house actually sold for and Zoopla is a guess at best! and yes it does need it's own thread. IT has it's own sub forum!!:rotfl::beer: