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Help with interpreting land registry entry please

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  • Mojisola
    Mojisola Posts: 35,559 Forumite
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    I thought that the value was the last price that the property was sold for??

    When we did a voluntary first registration last year after owning the house for some years, the value of the house had to be its current value, not what we paid for it.
  • Eliza_2
    Eliza_2 Posts: 1,323 Forumite
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    Mojisola wrote: »
    When we did a voluntary first registration last year after owning the house for some years, the value of the house had to be its current value, not what we paid for it.

    Who determined that value? Did you have to get an independent valuer to do so or were you able to give an estimate yourself?
  • PersianCatLady
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    Mojisola wrote: »
    When we did a voluntary first registration last year after owning the house for some years, the value of the house had to be its current value, not what we paid for it.

    The OP said that the property was registered when the ownership was transferred from mother to daughter.

    In this situation, the price would have been the purchase price.

    May I ask a genuine question out of interest - why did you register your house voluntarily last year, was there a reason?
  • Tiglet2
    Tiglet2 Posts: 2,480 Forumite
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    I'm wondering whether the old lady had added the daughter on the title initially as a transfer of equity and then at a later date took herself off the title. Sometimes these transfer of equities are done as a "Transfer at under value" between family members. If you wanted to buy the property, you would have to pay what it's worth on the open market.
  • Mojisola
    Mojisola Posts: 35,559 Forumite
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    Eliza wrote: »
    Who determined that value? Did you have to get an independent valuer to do so or were you able to give an estimate yourself?

    There were a couple of similar houses nearby which had sold at the same time and we gave an approximate value for our house.
    The OP said that the property was registered when the ownership was transferred from mother to daughter.

    In this situation, the price would have been the purchase price.

    That's not what we understood from the forms - the price you pay for registering is based on the value of the property, not an undervalue sale price.

    May I ask a genuine question out of interest - why did you register your house voluntarily last year, was there a reason?

    The house would have needed to be registered at some point. It was easier (and cheaper) for us to do it now while we are capable of doing it.

    As it was, the process raised a couple of issues that we were able to sort out easily because we knew the background to the property and the boundaries so we were pleased we did it and didn't leave a problem for, possibly, our kids to deal with.
  • PersianCatLady
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    Mojisola wrote: »
    There were a couple of similar houses nearby which had sold at the same time and we gave an approximate value for our house.



    The house would have needed to be registered at some point. It was easier (and cheaper) for us to do it now while we are capable of doing it.

    As it was, the process raised a couple of issues that we were able to sort out easily because we knew the background to the property and the boundaries so we were pleased we did it and didn't leave a problem for, possibly, our kids to deal with.

    Thanks for answering that Mojisola.

    With regards the stated price on the Land Registry title register.

    If the property was actually sold from the mother to the daughter for a sum of money, then that is the figure that would be entered on the register, ie £80,000.

    Although this seems odd that the mother would sell to the daughter for £80,000 (less than market value) it does make sense if the mother was getting her affairs in order.

    As HM Land Registry is under a statutory obligation to enter price paid whenever practicable, so if there has been a sale for a sum of money.

    In cases where no payment is made or the price cannot be calculated we will make a value stated entry. If the actual value is not known, an entry may be made on the basis of the information given to HM Land Registry for assessing the fees. (I copied this paragraph from
    HM Land Registry)

    Here is a link to the full practice guide -
    https://www.gov.uk/government/publications/price-paid-or-value-information-registration-procedures/practice-guide-7-entry-of-price-paid-or-value-stated-data-in-the-register#when-the-price-paid-should-be-entered
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