Woman wins £545,000 house with a £2 raffle ticket

Soldato
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Isn't all this a bit of dodgy area legally? I remember reading a few years ago when these were being shared around how an element of skill had to added to make it legal? Something like that as lotteries are generally for fund raising

Lotteries in Great Britain can only be promoted by charities, other good causes and local authorities. They cannot be promoted for private or commercial gain.

https://www.gamblingcommission.gov....compliance/Lotteries/Promoting-lotteries.aspx

Edit:

Yeah element of skill added to make it legal

Such property raffles, which include a question as part of the entry, are not considered lotteries and not regulated by the Gambling Commission
https://www.bbc.co.uk/news/uk-england-shropshire-51096439
 
Soldato
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I didn't express my thinking very well. Bills, maintenance and general living in something like that on 17 grand a year would be tough.

Not to mention, its rural Shropshire, so transport links will be crap and neighbours like Chris Wilson :)

And there we have our rags to riches story including plot twist. Girl wins house and moves into idyllic country area. All is going well until she visits her local pub to find the Queen, Boris Johnson and the Pope seeking audience with a mysterious old man...
 
Caporegime
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Definitely sell it imo, although tbf, she might have trouble as the owner couldn’t shift it, hence the raffle.

she’s a young girl, I’m sure she’d be far happier somewhere more urban and with more going on than a somewhat remote Shropshire farmhouse.
 
Soldato
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Isn't all this a bit of dodgy area legally? I remember reading a few years ago when these were being shared around how an element of skill had to added to make it legal? Something like that as lotteries are generally for fund raising



https://www.gamblingcommission.gov....compliance/Lotteries/Promoting-lotteries.aspx

Edit:

Yeah element of skill added to make it legal


https://www.bbc.co.uk/news/uk-england-shropshire-51096439

Yeah there was a question to answer about a famous person from the local area (can't remember the exact details).

I saw this a couple of months ago and was tempted to enter myself, but the site seemed a bit phishy, so wasn't comfortable entering my details, seems it was legit after all
 
Soldato
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Definitely sell it imo, although tbf, she might have trouble as the owner couldn’t shift it, hence the raffle.

she’s a young girl, I’m sure she’d be far happier somewhere more urban and with more going on than a somewhat remote Shropshire farmhouse.

Yep, could be a "your problem now!" kind of situation :p

I wonder if it's a listed building too.
 
Caporegime
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Isn't all this a bit of dodgy area legally? I remember reading a few years ago when these were being shared around how an element of skill had to added to make it legal? Something like that as lotteries are generally for fund raising

I think it's very suspect/in a grey area. They do also tend to have some rather amateur looking T&Cs etc.. there was one recently for Dancers Hill House which was perhaps a bit too ambitious, they seemed to break their own (original) T&Cs by extending the competition more than they were supposed to (which I suspect was because they were no where near their target), then when they finally did the draw it was of course a cash prize, they didn't even announce the actual amount though... presumably embarrassingly low relative to what they were supposed to raise.

I think some of the house competitions between 500k-1million have been successful but once you're getting into multiple millions then it's going to be a bit tricky to hit the target and various competitions end up failing.

The competition organisers for some of these things seem pretty delusional too - the whole motivation behind them seems to be because they can't accept their house isn't actually worth as much as they think it's worth... so they then raffle it for some notional amount even higher than that!

I think re: the skill element - some of them go for a very simple question, as a result of this they also then need to provide a free entry route - this just messes with the structure of the competition - assuming the free entry route is actually counted (I mean who is to say they don't just throw them in the bin - these people often aren't too transparent) then the people who've paid for a ticket no longer know what they're odds are that they're betting on... if you end up with the same number of free entries as actual tickets then you've just halved their chances.... yet they've still paid the same amount.

Some of other competitions take the risk of not allowing a free entry but making the question harder, supposedly this is legal too as there is more skill involved so again not technically a lottery.
 
Caporegime
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https://www.dailymail.co.uk/news/ar...s-no-one-wins-dream-home-raffles-rip-off.html

After deciding to sell their £2m two-bedroom flat, a short walk from Kensington Palace, property developers Jonny Jackson and Harry Dee set up a raffle at £10 a go.

The pair, both 28, own a company to run such raffles. But in seven months, they sold only £227,000 worth of tickets — a tenth of what they needed.

Unwilling to hand over their house at such a loss, they gave the winner — named on a Facebook as ‘Caroline from London’ — a mere £53,500 in cash.

They are keeping the remaining £173,500 to cover costs of running this and future raffles.


They said ‘you have until tomorrow to buy a ticket to win this house’, with its six bedrooms, seven living rooms, and a 60ft frontage on the River Avon.

In truth, people had virtually no chance of winning because only 30,000 of the £25 tickets had sold, far short of the 175,000 needed for the raffle to be concluded successfully.

Despite generating £750,000 in ticket sales, the Beresfords announced that the ‘winner’ would receive only £110,000, once all the ‘very high costs’ incurred in running the promotion had been deducted.

Also, the new £160,000 Aston Martin car runner-up prize failed to materialise.

Nice business for the competition organisers... obvs they do have some costs but they do seem to build in some profit regardless of whether the house is actually awarded.

The sad thing is that on social media for this stuff you get people throwing in comments like:

iTs betTeR oDds tHaN tHe LloTteRy

Given the unknown number of free entries in some cases and/or the way that ones such as the above don't even award the main prize in the end... and with the resulting prize pool itself being a small chunk of the funds taken then... nah. At least the lottery gives away circa 50% of the ticket sales as prizes.

Also some of them have the cheek to add on an admin fee when selling the tickets but also plan to deduct costs from the prize pool too regardless.
 
Soldato
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All of these are basically a scam. They all supposedly have massive costs that need to be paid for. Whilst I'm sure there are some costs, they are massively inflated to make it a nice money earner for the people running it.
 
Man of Honour
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This seems like a great way of selling a house. I am surprised no one has setup companies doing this sort of thing?

Years ago, maybe sixty, some guy in Ford of Dagenham used to raffle his weekly wage packet, maybe £8 or £10, for a shilling, (five pence) a ticket, if he sold 250 he was well in front.
 
Soldato
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https://www.dailymail.co.uk/news/ar...s-no-one-wins-dream-home-raffles-rip-off.html






Nice business for the competition organisers... obvs they do have some costs but they do seem to build in some profit regardless of whether the house is actually awarded.

The sad thing is that on social media for this stuff you get people throwing in comments like:

iTs betTeR oDds tHaN tHe LloTteRy

Given the unknown number of free entries in some cases and/or the way that ones such as the above don't even award the main prize in the end... and with the resulting prize pool itself being a small chunk of the funds taken then... nah. At least the lottery gives away circa 50% of the ticket sales as prizes.

Also some of them have the cheek to add on an admin fee when selling the tickets but also plan to deduct costs from the prize pool too regardless.
Yes when you look at things like that you have to wonder about the legalities. It's got to be bordering on fraud surely?
 
Caporegime
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An old house like costs a lot of money to heat and maintenance bills never end on properties like that.

Again though - she's got it mortgage free... I think that's what you and the other poster are missing. Unless you're grossly overestimating the heating bills here - it's not going to cost 7 grand a year to heat the thing.

for example:

https://octopus.energy/blog/what-is-the-average-energy-bill-in-the-uk/

For a large property with five or more occupants, you can expect the average monthly utility bill to be £137, which is £1,639 annually, based on the energy output figures above.

Yes it will cost more than a small house or a flat... but it hardly compares to paying say 600-800 in rent every month...

She can throw in a new boiler and some new windows too and it would still be cheaper than renting just a room in a flat share in say London.
 
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All of these are basically a scam. They all supposedly have massive costs that need to be paid for. Whilst I'm sure there are some costs, they are massively inflated to make it a nice money earner for the people running it.

Yet for £2 who cares that is where the power lies it triggers all humans instincts to gamble because probably all those who never did died off or never got to mate. Humans are hard wired for this.


99% will see a £2 house thats it done deal!
 
Soldato
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£2 but if it's a listed building there could be £100k worth of restore work which has to be carried out by the owner. Which is why the previous one couldn't sell it. So they stuck it in a raffle, took the money and ran.

Looks amazing on the surface, but you don't know without a proper inspection :/
 
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Caporegime
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Some more details on another rather scummy one - Dancers Hill House competition run by a Mrs Melanie Walsh... they seemed to be getting some flack on social media for being less than transparent and then just pulled the plug on their website etc.. and seemingly didn't;t announce how much the eventual prize winner actually got - obvs he/she didn't end up winning the house.

Seems like the typical story of couldn't sell the house for the price they wanted - albeit with a twist - note the original house was apparently on the market for 6.25 million:

https://www.dailymail.co.uk/femail/article-5357789/Mansion-Elizabeth-stayed-goes-sale-6-25m.html

But in the competition T&Cs they give it a valuation of 5.25 million - did they suddenly get a reality check re: a more appropriate value for it? apparently not - what they seem to have done is cut off the back garden! Like WTF??? Imagine winning a massive house and then finding out you have no back garden?

Here it is tucked away in the T&Cs:

http://web.archive.org/web/20181201110914/https://www.windancershillhouse.com/faqs/

ozRhROF.png

That does make the new valuation a bit questionable IMO - I mean cutting the back garden off makes it a bit of an odd house to sell and seemingly was already difficult for them to sell in the first place, the cottage they cut away might well be worth close to a million etc.. but I wonder if the resulting main house with no back garden has then been sabotaged in doing this - like if it went to auction would it be more like 3 or 4 million? I mean what buyer looking for a big house in a semi-rural area is going to be happy with the back garden getting cut off? Not something people entering the competition might realise when looking at the nice photos in the main website but a slight knock down for any lucky winner had they sold sufficient tickets. Sure they've still won a big prize etc.. but it still stinks a bit IMO.

Presumably they were looking to keep the cottage and a big chunk of the grounds themselves... and how many paid tickets were they looking to sell? £600,000 at 12.50 each! That's £7.5 million oh and an admin fee of £1 per ticket too so an extra £600k for all their admin costs too... so potentially taking in £8.1 million before "costs" in order to award a house they claim is worth £5.25 million but might actually be worth substantially less than that given they couldn't sell it previously and given what they've done to it.

They also managed to break their own T&Cs:

OPENING DATE 16th June 2018.

CLOSING DATE 16th December 2018 (or earlier should all of the tickets be sold).

The promoter reserves the right to extend the Competition by a maximum of 6 months.

They ended up extending the competition again to Dec 2019... seemingly breaking their own rules and prompting a complaint to the ASA according to the comment here:

https://www.loquax.co.uk/housecomps/win-dancers-hill-house.htm

[...]"I understand you objected that the promoter of this house raffle had breached the terms and conditions of their promotion by twice extending the end date for entries; also placing the competition in contravention of several of the Advertising Rules and the case precedent of the 2015 Terra Plana ASA Ruling.

I appreciate your concerns about this promotion and I would advise that we have previously received complaints about this issue, raising the same concerns about the change of this promotion’s end date. Extending the end date in the manner done in this promotion is a clear problem under the rules and so unlike with cases which require further investigation by the ASA, where additional commentary or input from a complainant can be necessary to fully understand the issues, we forwarded these complaints directly to our compliance team for them to take direct enforcement action against the advertiser.

Because the competition is still live, I understand we are not seeking Melanie Walsh to close it down now, as that would disadvantage everyone who's entered so far. Rather, our Compliance team have promised to deploy all of their available sanctions simultaneously should the promoter seek to extend the competition once more (you can find further information about the sanctions the ASA has available here).

Compliance have outlined their position and the relevant code rules to the promoter and they trust she's clear on this and where she stands.[...]

And of course when people on their social media (Facebook etc..) complained they seemed to treat the complainants as though they were haters/trolls etc.. and just being negative... when in reality they must have known full well what the financial situation was and that they extended twice in breach of their own rules seems pretty telling.

Of course the prize then gets drawn and the Facebook page, website etc.. disappears and there is no transparency over who the winner is or what amount they actually won.

It does seem that some of these competitions are run very badly and by people who seem to be rather scummy or just rather stupid... the motivation in some cases simply seems to be a delusion that their property isn't actually worth as much as they think and in others (such as the London flat) it seems to be just taking advantage of some mug punters to make a quick buck.
 
Soldato
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What's stopping these things from being rigged? Sell all the tickets and then gift the house to a mate as the "winner" then sell up and split the profit.

Do they have to prove the draw is actually random in any way?
 
Caporegime
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I think they tend to use a third party to conduct the draw and get a solicitor involved etc...

Its not so much the draw itself that I'd be too concerned about - assuming it is run by a third party etc... solicitor overseeing it etc... but rather the other factors like the "costs" these people incur, the margin they aim make on top of that and the valuations they give... not to mention I'd not be too confident about how things like free entries are handled.
 
Caporegime
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I think it's likely that raffles like these become far more prominent, I can totally see a business focusing on it. It would at least resolve the problem of finding enough people to sell tickets to, whilst legitimising the practice and there would undoubtedly be enough interest to run a business off of it, if not multiple.

Why hasn't it occurred already? I guess there must be legal problems or attempts to do so by scam artists/idiots have made it difficult.
 
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