Discount of market value

Star978

Hi! If anyone on here has ever brought a house under DOMV ( discount of market value) or DMS scheme. Could you let me know if the reselling of the house was hard? Or if you have any advice to do with it

daveyjp

Reselling is often hard on the seller who many years aftervthe purchase fails to remember that the discount runs with the property.  They bought that £100k house for £80,000 due to a 20% discount, when they sell at £300,000 they receive £240,000 which means they can no longer afford to move to the property they want.

There may also be other covenants such as it must be sold to a first time buyer, born within the area etc etc. Restricting buyers immediately reduces values.

Avoid if you can.

mills705

Star978 said:

Hi! If anyone on here has ever brought a house under DOMV ( discount of market value) or DMS scheme. Could you let me know if the reselling of the house was hard? Or if you have any advice to do with it

My other half bought hers in 2017/2018 in North East England. 

A 2 bed semi with 1 parking space and a niceish sized garden. 

Her value more or less doubled in the ownership. She put it on the market on a Monday and within 2 hours had about 4 viewings booked in. She had 3 offers the day after for the asking price. 

Only difficulty in selling was the management pack. As the estate was still in complete there was no ongoing charges but her solicitor was adamant on her paying a fee for a pack that did not exist as there was nothing to pay. Took a while but he eventually understood and sailed through. 

Star978

mills705 said:

Star978 said:

Hi! If anyone on here has ever brought a house under DOMV ( discount of market value) or DMS scheme. Could you let me know if the reselling of the house was hard? Or if you have any advice to do with it

My other half bought hers in 2017/2018 in North East England. 

A 2 bed semi with 1 parking space and a niceish sized garden. 

Her value more or less doubled in the ownership. She put it on the market on a Monday and within 2 hours had about 4 viewings booked in. She had 3 offers the day after for the asking price. 

Only difficulty in selling was the management pack. As the estate was still in complete there was no ongoing charges but her solicitor was adamant on her paying a fee for a pack that did not exist as there was nothing to pay. Took a while but he eventually understood and sailed through. 

How long was she in the house for if you don’t mind me asking? Thank you for your response 

mills705

I think about 5 years. 

She sold it using a local estate agent who was quite well versed in the sale of them. They also sold next doors, same DMV about 4 months prior to hers going up for sale. 

Star978

mills705 said:

I think about 5 years. 

She sold it using a local estate agent who was quite well versed in the sale of them. They also sold next doors, same DMV about 4 months prior to hers going up for sale. 

Thank you very much