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A person I know has sold his house recently for a figure dramatically less than the real value. The property is worth about £140000 and he sold it according to Land Registry for £75210. Any suggestions why he would do this. Knowing the bloke I know some dodgy dealing is involved but I am struggling to work it out. Bankruptcy is not involved.
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Got to be somebody else has a share in the property and he is avoiding payment to a third party. The solicitor runs the risk of being prosecuted for not overseeing the sale and registration if any dishonesty is involved.
If the house is not his main residence he may be trying to avoid capital gains tax.
Definately a dishonest sale somewhere but where? Not a divorce and not inherited. I would guess sold to someone he knows.
Sold to someone he knows for £75k plus a briefcase full of bank notes to the sum of £50k imo
There are a good few "We Buy Houses In 48 Hours " property agents about...quick sale for quick cash
or sold half the property for £75k and has done a back to back contract to maintain 50 per ownership and release some cash
or sold half the property for £75k and has done a back to back contract to maintain 50 per ownership and release some cash
If it IS his main residence, then there's no capital gains tax liability.
Perhaps he had, say, £72,500 outstanding on a mortgage, while solicitor's and estate agent costs came to £2,710. The buyer gives him an additional £50,000 in cash, a new car, a share in a business or some such.
Meanwhile, across town, some other party or parties had lent him money on the basis he owned a house worth £50,000 more than the mortgage on it. Unfortunately it turns out they were misinformed ...
Perhaps he had, say, £72,500 outstanding on a mortgage, while solicitor's and estate agent costs came to £2,710. The buyer gives him an additional £50,000 in cash, a new car, a share in a business or some such.
Meanwhile, across town, some other party or parties had lent him money on the basis he owned a house worth £50,000 more than the mortgage on it. Unfortunately it turns out they were misinformed ...
Its got subsidence
Its in a flood risk area
The ground is contaminated
Near old mine workings
High Radon readings
Banks won't give a mortgage for these and other reasons, so its a buy to let cash purchase.
Its in a flood risk area
The ground is contaminated
Near old mine workings
High Radon readings
Banks won't give a mortgage for these and other reasons, so its a buy to let cash purchase.
Why would you care how much he flogged it for??
The words "person", "bloke" and "dodgy dealing" point at some antipathy towards the person concerned.
As far as CGT goes, if it is not his main residence and he sold it for less than it's worth he'd have to use the market value of the property and not the sale price. I think the solicitor would also be obliged to inform HMRC.
It may be a concessionary sale to a relative.
These are very common at the moment and provided that the mortgage is paid off there isn't a problem.
The buyer / relative will not require a deposit and will now have equity in the property.
Land registry shows the discounted (actual) price on completion.
These are very common at the moment and provided that the mortgage is paid off there isn't a problem.
The buyer / relative will not require a deposit and will now have equity in the property.
Land registry shows the discounted (actual) price on completion.
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