House deposits?

[Col]

Don I added to that post to kinda clarify the idea

[Snowy]

[quote author=Col link=1313401076/40#40 date=1313607022]No Don that is absolutely NOT legal in anyway as Star would confirm as that is mortgage fraud

That's right col - 11 years as a solicitor so maybe my advice should be followed ? [/quote]


Star....at last. Some sense coming lads. ;D ;D

[Ducatista]

The term "gifted deposit" is a way of making the same saving a different way by having the market value inflated above the sale price.

The surveyor cannot inflate the price above market value. If they do it's mortgage fraud.

It can however be sold at less than market value.
Provided you are not evading tax or deliberately depriving yourself of assets to get state benefits, then you can sell your house for as low a price as you like.

Normally genuine opportunities do not come to ordinary people because anyone in the business will cash in on a desperate seller before it gets to the general public and therefore I am skeptical.

[R6_Don]

Cheers Col
Thats what i was trying to say but could not find the right way to explain it :. Still not legal then?

[Col]

Cheers Col
Thats what i was trying to say but could not find the right way to explain it :. Still not legal then?

Not legal the way you put it but it is the way I put it. It used to be very popular method used by large builders/developers to sell their multitude of houses and provide continued business by way of achieving high turnover which amounts to £millions.

It is extremely unusual in a single private sale as Ducatista has pointed out a genuine opportunity seldom presents itself. Mortgage lending has been severely tightened up and some would refuse to lend with this 'deal' in place but others might.

[Snowy]

The term "gifted deposit" is a way of making the same saving a different way by having the market value inflated above the sale price.

The surveyor cannot inflate the price above market value. If they do it's mortgage fraud.

I thought that was what I was saying Lisa The market value is inflated above sale price

[Ducatista]

The market value is inflated above sale price

We don't know whether the valuer has deliberately inflated the value to seal the deal (illegal) or whether it's a genuine discount from market value by a desperate seller (legal).

Like you I'm skeptical, but we are not in a position to judge any individual case.

[Snowy]

The market value is inflated above sale price

We don't know whether the valuer has deliberately inflated the value to seal the deal (illegal) or whether it's a genuine discount from market value by a desperate seller (legal).

Like you I'm skeptical, but we are not in a position to judge any individual case.

Completely agree - I'm being old fashioned again ;D ;D I was taking an interest in this thread because I shall be moving next year and thought I might be picking up a tip I wasn't aware of. Don't think I have though

[Ducatista]

You won't get any arguments from me about being old-fashioned. Your summary that there aren't any clever shortcuts fits in with my thinking.

As I said we did a shared equity scheme in 1991 to avoid saving a deposit.
As prices were in decline we would probably have been better off waiting and whilst we accept full resposnsibility for our decision, I do wonder whether these schemes to "help" people onto the "ladder" when they can't otherwise afford to are actually schemes for the IFAs/solicitors/lenders/builders to support high house prices that would not otherwise be supported.

The problem is that someone wanting to buy doesn't want to hear they can't afford it and anyone selling them a service doesn't want to tell them that either.

[Snowy]

You won't get any arguments from me about being old-fashioned. Your summary that there aren't any clever shortcuts fits in with my thinking.

As I said we did a shared equity scheme in 1991 to avoid saving a deposit.
As prices were in decline we would probably have been better off waiting and whilst we accept full resposnsibility for our decision, I do wonder whether these schemes to "help" people onto the "ladder" when they can't otherwise afford to are actually schemes for the IFAs/solicitors/lenders/builders to support high house prices that would not otherwise be supported.

The problem is that someone wanting to buy doesn't want to hear they can't afford it and anyone selling them a service doesn't want to tell them that either.

The mistake I made listening to an IFA was to take out an interest only mortgage. The plan was that I could pay off the capital element of the mortgage after 25 years by utilising the cash amount I could take from my company pension which by that time would be available to use. The balance of the lost pension amount would then be redressed by a seperate AVC pension which I took out at the same time as buying the house. It seemed a good deal - it was the cheapest option, I gained tax relief on the AVC making that a good back up pension and the IFA made the commision on the AVC policy sale.

The problem was that there were too many parts to the equation that could (and did) go wrong, not least the pension values (based on investments) and changes in my personal circumstances that could not have been forecasted. In the end there was a "class action" suit based on mis-selling of the AVC's against their intended purpose of which I was part and gained compensation for. I then went back to basics and changed it to a normal capital repayment mortgage.

It does go to show that no matter how good you think or are being told a product is, these can just be too complicated and rely too heavily on external factors you have no control over. You have to also remember it's your money and life's future that's being dealt with, not that of the "experts" who are involved in selling or profiting on your business.