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  • Buy-to-Let

    Can I sell my property to a friend /relative to 'force up' the street values?

    Hi,

    Bit controversial this one but, as the title says can I sell my property to a friend / relative to 'force up' the street values?

    On the face of it I can't see anything illegal in this. After all, I purchased at a figure ~15% higher than the estate agents valuation, so why can't the next sale do the same? And the next? Or am I missing something?

    Any thoughts or comments anyone....? Confused

    Many thanks.

    David1
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    The short answer is no!

    First of all, if financing is being used, the lender's valuer will value the property at the market value or the purchase price, whichever is the lower. This would mean someone putting significantly more deposit into a deal to make it work.

    If financing is not being used, then you may achieve a new ceiling price for the street, but, any future sales would again be judged by overall market value, not an "oddity" or "one off".

    I don't think its sustainable for people to keep paying over the market value to artificially inflate prices on a street either.
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    I can only see this working if the given road has values that are a lot less then the local area for no good reason.
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    Hi Vanessa and Ian,

    Many thanks for your responses. Fair points from both of you.

    I suppose that as with everything, change (value rise) has to be in small steps and in conjunction with everyone else around. I guess the key is in not being too greedy and being able to justify any increase with added value etc. After all, property prices do rise as we all know. It is by individuals demanding (and achieving) higher prices that poor areas improve and the less-desirables are driven out. Look at Notting Hill as an example.

    Apart from the warnings that you mention Vanessa, there appears to be nothing illegal in my proposal, wouldn't you agree?

    David1
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