Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

Exchanging Properties, but with a price difference

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Exchanging Properties, but with a price difference

    My parents are trying to sell a property, but with the market as it is, it has proven very difficult. The latest offers have been very low.

    A family have approached through one of the estate agent's that we have selling our property, they would like to swap, since theirs is of less value, they will make up the difference. I am wary of this scheme, because their house is not currently on the market, although I have found through net house prices, the value it was sold for in 2002. The properties are both in London. I imagine a solicitor would be integral to the whole process, but is there anything else to be wary of. For instance what about the estate agent. They will be expecting some payment, yet we could actually do the whole deal without an estate agent, if we took the property off the market.
    Any advice would be much appreciated.

  • #2
    So the current agent has actually done what your family employed him/her to do, and has found you a willing buyer/part exchanger, and you're looking to take it 'off the market' and basically dodge out of paying them their fee....?

    Whether you can actually dodge out of paying them depends on the contract your folks signed with them, if at all. If that contract specifies that the agent's fee is payable if the property 'sells' to a buyer introduced during the time they had a valid contract, then you can't 'take it off the market' and flog it to the buyer they introduced.....

    Comment


    • #3
      hi
      thanks for this. I wasn't actually thinking of dodging any estate agents fees, I'm sorry if I gave that impression. I was more concerned that it was a valid/legal operation. In particular, how exactly can a good deal be done, since their property isn't currently on the market and so the value of their property needs to be accurately ascertained.
      Any more advice would be much appreciated.

      Comment


      • #4
        You will have to establish the values of your property and of the other property. Stamp Duty Land Tax (SDLT) is payable by each of you on the value of the property being acquired. Obviously all you are concerned about is the difference between the values. The figures involved must be a reasonable estimate of value for each property. OK you can both put your figures at the lower end of the pric ebrqacket for similar houses but it must be a credible market value and not a deliberately reduced one e.g. if the houses were worth about £200K & £300K you can't reduce the prices to £150K (no SDLT at all) and £250K (1% nstead of 3% SDLT) - but £190K and £290K might be credible.

        Apart from the SDLT point it is a straightforward matter for solicitors to organise.

        As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients
        RICHARD WEBSTERwww.rwco.co.uk
        As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

        Comment


        • #5
          thanks again.
          Also how much have house prices risen since 2002? The house was sold for 415K in 2002. I'm wondering what it should be worth now (given the recent drop), although it may well have had improvements since then? It's in a fairly good area of London, 3 bed semi-detached.

          Comment


          • #6
            It is all legal and above board however some extra legal work will be required.
            Worldwide Financial Planning is a specialist independent provider of Large mortgages.

            Comment


            • #7
              Also how much have house prices risen since 2002? The house was sold for 415K in 2002.
              Dangerous to do that kind of thing because there is so much local variation - you simply have to look and see what other similar houses are being marketed for now and then knock a bit off to reflect realism rather than optimism!
              RICHARD WEBSTERwww.rwco.co.uk
              As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

              Comment

              Working...
              X