Question about house prices
- Thread starter robfosters
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Why will it come down?
Disposing of assets to claim housing benefit will be a grey area.
Councils also will have differing views on claiming benefits to pay immediate family. Especially given the disposal beforehand.
Surely your mum would just gift the house to you or your brother. If she lives for 7 years afterwards, no inheritance tax issues either (although it should still be below the threshold).
London and the south east, as has been said, IS NOT a reflection on (most) of the UK! In the North East for example.. house prices are only just getting back to pre crash levels and in some areas prices are still deflated.
My house, as an example, was valued at the height of the market at £280k, next door sold for £250k before the market peaked.. That property was subsequently rented out and then repossessed, bought at auction and has just been sold for £175k!!! my house is now worth around £205 on the desktop valuation systems. And we live in one of the most affluent areas.
I see clients every week who watch the news where national house price trends are driven by whats happening in the south east and are shocked to find that their property value is sliding!!!
My house, as an example, was valued at the height of the market at £280k, next door sold for £250k before the market peaked.. That property was subsequently rented out and then repossessed, bought at auction and has just been sold for £175k!!! my house is now worth around £205 on the desktop valuation systems. And we live in one of the most affluent areas.
I see clients every week who watch the news where national house price trends are driven by whats happening in the south east and are shocked to find that their property value is sliding!!!
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Yeah, but if there's an outstanding mortgage, what happens there? Do the mortgage company sign the mortgage over to the new owner?
Good point. I'm sure there is a reasonable way to avoid stamp duty in this case.
https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property
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House prices used to be cyclical before 2008, but now its any ones game.
The way I see it demand is outstripping supply, so we are going to buy another soon and rent the one we nearly own and carry on.
The will be no interest rate rise anytime soon and a half decent house can be had around my way for £120K.
Problem your mum has is interest only mortgage, she needs to sit it out.
London is a different ball game altogether as you have foreign investors from overseas buying up off plan new builds and then selling when the keys are ready for a tidy profit.
Due to mass immigration and investment in the capital.
In 5 years her house will be worth at least a tidy £500k and then she can move and have a good chunk of change to buy another but not in London she needs to move to the outskirts or further a field.
Say a £350k house with a £70k mortgage will only cost about £400 a month.
The way I see it demand is outstripping supply, so we are going to buy another soon and rent the one we nearly own and carry on.
The will be no interest rate rise anytime soon and a half decent house can be had around my way for £120K.
Problem your mum has is interest only mortgage, she needs to sit it out.
London is a different ball game altogether as you have foreign investors from overseas buying up off plan new builds and then selling when the keys are ready for a tidy profit.
Due to mass immigration and investment in the capital.
In 5 years her house will be worth at least a tidy £500k and then she can move and have a good chunk of change to buy another but not in London she needs to move to the outskirts or further a field.
Say a £350k house with a £70k mortgage will only cost about £400 a month.
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My mum would have the advantage that because she would be retired, she wouldn't have to need to make sure she lives in an area with plenty of job opportunities or good wages. That could lower prices.
The flip side to that is that a lot of those places are crap holes.
Scaremongering. House prices in London do not crash, at least not to the same percentiles as other parts of the U.K. or Europe. In times of recession, the market in London really only slows down with there being less demand. This means the increase in general house prices slows down accordingly. At least that's what's happened during the last couple of recessions and I can't see that changing.
House prices in London are extortionate when compared to other parts of the U.K., but not when compared to other major Cities in the Western Hemisphere. It's all relative.
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In 5 years though she will be 60.
1. How old can she be given a mortgage term to.
2. To pay a mortgage she'll need a job. Criminal law secretary jobs are dying by the day atm.
What crystal ball are you using?
London house prices did fall in 2008/2009. You will also see below from 2002 to 2007, London underperformed vs the rest of the country.
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********, it *might* be worth that conversely it might have fallen and she'll be in a position where she's only actually got say 50k in equity or something...
if she's got 12 years until the end of the mortgage and she has no plans in place to pay it off then she does have a real potential problem and really ought to get some proper advice about her options rather than this silly idea that she should just sit back because house prices always rise and in 12 years she'll simply be able to sell up and buy something else where with the extra profit she's made... that is simply a gamble and isn't the sort of gamble it is prudent to make at that age when there isn't any time left to recover from it going wrong.
What if there is a 2007 style crash in say 11 years time... she's can't sit it out as the mortgage runs out a year later... she'll could be forced to sell taking a massive hit on the equity she previously had
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Dowie, she has no options mate. Full stop.
The most she can afford to pay is £650 a month. She cannot do anything with that sort of money, and she cannot remortgage due to low income. I think sitting on it really is a gamble she is being forced to take. If anyone else can think of any options, I'd be glad to hear them.
The most she can afford to pay is £650 a month. She cannot do anything with that sort of money, and she cannot remortgage due to low income. I think sitting on it really is a gamble she is being forced to take. If anyone else can think of any options, I'd be glad to hear them.
What is the interest rate on the current mortgage (I'm assuming with 12 years left it wasn't taken out recently)? Has she been to see a mortgage adviser?
Whilst true, remember that inflation over 12 years helps.
A 25% decline in real terms still leaves the £ amount of equity the same (assuming 2.5% a year inflation, 33% total inflation).
Is a crash of more than 25% likely? I'd say it is a very remote possibility. The 2008 crash wasn't even worse than that.
No private pension?
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Nope.
Again, she took on a house on an average salary. After mortgage and expenses, there was nothing left for anything like that, and her firms never offered it.
0.5%. In line with BofE interest rates. Today was good news
That wouldn't be £650 a month on a £230k mortgage.
Inflation isn't very relevant - we're simply talking about the price of property... what you mean is if property rises at 2.5% a year for 11 years then crashes by 25% in one go she'll be OK... well fine... but property might well not rise by 2.5% over the next 11 years it might rise then fall a bit, it might stagnate... it might rise massively - point is you don't know what it will do but the risk is it could decline/crash prior to her mortgage running out and she's not in any position to ride it out.
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London price increases are spreading out to all commutable towns.
I sold my house in Reading two months ago for 35% more than I bought if for three years ago and since I sold it, the prices have gone up again by about 4%. In two months.
I sold my house in Reading two months ago for 35% more than I bought if for three years ago and since I sold it, the prices have gone up again by about 4%. In two months.