Explanation for super cheap house on street

HouseHunter223

Looking to buy in a cetain area. What's going on here:
https://www.rightmove.co.uk/house-prices/ls16/alnwick-view.html

The latest sold property is £100k less than everything else.

Would this bring down prices/value of the other properties in the area or is it obvious that it's some kind of gift or similar?

MaryNB

There doesn't appear to be a listing on zoopla or rightmove so looks like a private sale, possibly, as you suspect, at a discount to someone.  Maybe a family member. If there was something wrong I would expect to see a listing with an auction mentioned on it. 

The sold prices of other properties in the area seem pretty consistent so I wouldn't expect a single outlier to affect the prices in general. 

ccbrowning

Had this happen on the cul-de-sac where I live. Basically an older gentleman had bought a huge house and it was too much for him and he just did all he could to sell it ASAP and move into a retirement community. You never know.

Didn't hurt my price at all.

Cinders:

Our neighbours house keeps depleting in sale price every 5 years - even though the house hasn't changed hands.  There sale price history is to do with the type of mortage on it - they are a muslim family and have a special halal mortgage on the property.  Sorry, I don't know exactly how it works, but seems to be similar to shared ownership and the reducing sale price reflects the amount owned by the mortgage company.

nicknameless

Cinders: said:

Our neighbours house keeps depleting in sale price every 5 years - even though the house hasn't changed hands.  There sale price history is to do with the type of mortage on it - they are a muslim family and have a special halal mortgage on the property.  Sorry, I don't know exactly how it works, but seems to be similar to shared ownership and the reducing sale price reflects the amount owned by the mortgage company.

If you don't know how it works perhaps you could delete the irrelevance in the middle of your post?

JGB1955

Perhaps it forms part of a divorce settlement.  Years ago, one of our neighbouring houses 'sold' for £100k - well below market value. The owner remained the same, just that she was now divorced.

user1977

The house price data is meant to filter out "off market" transactions, but it doesn't always work (and also sometimes fails to include normal deals). If it's obviously "wrong" then I wouldn't expect surveyors etc to use it as a comparable.

Sandtree

Cinders: said:

Our neighbours house keeps depleting in sale price every 5 years - even though the house hasn't changed hands.  There sale price history is to do with the type of mortage on it - they are a muslim family and have a special halal mortgage on the property.  Sorry, I don't know exactly how it works, but seems to be similar to shared ownership and the reducing sale price reflects the amount owned by the mortgage company.

There is more than one type of islamic mortgage available in the UK and the most immediate difference (beyond the lack of interest) is that the bank owns the property either entirely or partially at the outset.

If you are interested then Practice guide 69: Islamic financing - GOV.UK (www.gov.uk)

Slinky

We have had this one in our street recently. The house went up for sale and sold for about £500K and the new people have moved in, but only within the last month so their purchase isn't showing up yet. There's something gone on with the people who were selling, it wasn't a divorce.

Crashy_Time

"Overall, sold prices in Alnwick View over the last year were 32% down on the previous year and 54% down on the 2006 peak of £499,000." ?

Slinky

Crashy_Time said:

"Overall, sold prices in Alnwick View over the last year were 32% down on the previous year and 54% down on the 2006 peak of £499,000." ?

Easily explained that 2016 saw two 5 bedroom detached houses sold for over £500K which don't compare with more recent property type sales.