Well they don't have any control over the price in the auction, so long as they tick the boxes re: being able to show they marketed it then... Beyond that the auction is a quick and easy sale for them - the outcome isn't thier fault if they've met the typical requirements.
And boomers wonder why millennials are bitter towards them..
- Thread starter Scam
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Well they don't have any control over the price in the auction, so long as they tick the boxes re: being able to show they marketed it then... Beyond that the auction is a quick and easy sale for them - the outcome isn't thier fault if they've met the typical requirements.
Auctions have reserve prices.
What are the regulations on how far the bank can set the reserve price?
Care provider is going to take most of it anyhow. Dat house gonna get sold to cover costsHa, apart from the boomers who take out equity release and the banks get it instead
What makes you think there are any regulations to that effect?
Their duty is to get the best price reasonably obtainable, how they go about that is up to them. If the mortgagor thinks they've come up short and sues then the courts will consider the points I listed above.
And in reality they try to get the sale done quickly - that inevitable means they're trading off quick sale for sub optimal price... which was the point.
It's all well and good stating what they're supposed to do in theory, in reality it seems like they've got plenty of leeway to go for the quick sale route so long as they make sure to tick a few boxes when doing so... if they couldn't they likely wouldn't and you'd be able to cite a bunch of cases where they've been sued etc...
The point is they can obtain a sub optimal price, as you put it, but not unreasonably so. The risk of a quick sale is it could fall foul of the property not being marketed sufficiently.
Most cases of this nature are relatively low value and would be settled by agreement or in the County Court (where decisions are unpublished).
Aodhcon LLP v Bridgeco Ltd (quoted earlier) was an undervalue case which made it to the High Court as are McDonagh v Bank of Scotland PLC and Others and Kevin Philbin v Stewart Davies.
Here's a case where a claim for monies due was defended on the basis of a sale at undervalue: Bradford & Bingley plc v Peter Lesley Ross
That doesn’t involve an auction but rather it seems the property was sold to some business. Again the marketing thing can be dealt with... that’s a box ticking exercise - fact still remains they use auctions to get rid of the properties quickly and at a sub optimal price.
the other cases you cite involve a property sold as part of a portfolio, a property sold to a company set up by the guy making the loan etc...
None of that disputes the point really - it’s all well and good saying this can happen in theory and then trying to grab some examples that include some rather different scenarios (and quite shady actions in a couple). But given a bank ticks the boxes and markets the thing then in reality there isn’t much to stop them chucking it in an auction for a quick and undervalued sale - this is why BTL investor and people who simply renovate and flip properties go and buy at auction in the first place - they’re not looking for their dream home, they seeking any property that fits their basic requirements re: budget, location etc... and offers value and they know they can find these undervalued properties at auction. Granted perhaps undervalued to a lesser extent these days, not because of any actions re: better marketing by banks but rather because there have been plants of TV shows featuring property auctions and plenty of social media get-rich-quick guys flogging how to guides to wannabe landlords.
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Being from Cornwall myself and having followed Moon Man's post when he moved down I can say with certainty that he is lying about something. You wouldn't even get a decent sized piece of land like his with 100k that's without a house in his neck of the woods. Even when he purchased you wouldn't have been able to get what he has in Bodmin or Camborne for that price, even in a dilapidated state.
Soldato
As you don't know me I won't take it personally , Redruth was ridiculous ie 100k was a broken shell of bricks ,we had an offer accepted in Launceston that was just over 100k iirc , a mid terrace in Bodmin ,one in st austel near Charlestown ,all fell through for various reasons ,as already said this was next to a pile of rubble , overgrown garden ,outbuildings doors swelled shut ,deceased sale ,horrible colour ,no fence on the raised patio, old persons decor .
But not an old house and we had access to a 1k full building survey ,I am not a diyer but did the kitchen and flooring
My 300k estimate is the nearesr to a lie on reflection and been sober now ,I think I would need to join my utility and potting shed to the lounge (on my to do list) and convert the loft as it's a nice space
But not an old house and we had access to a 1k full building survey ,I am not a diyer but did the kitchen and flooring
My 300k estimate is the nearesr to a lie on reflection and been sober now ,I think I would need to join my utility and potting shed to the lounge (on my to do list) and convert the loft as it's a nice space
Soldato
Just found my saved properties from way back on Rightmove ,when I get chance and suss this tablet out will post some examples ,with context of average price at that time maybe, some under 100k,not that it will stop people wanting to argue but hey ho
Soldato
Long press on selected Rightmove URL, select 'copy', go back to Overclockers window, press 'paste'.
Soldato
Got a long list and haven't much time ,random one
https://www.rightmove.co.uk/property-for-sale/property-42643676.html
https://www.rightmove.co.uk/property-for-sale/property-42643676.html
Soldato
Soldato
When looking at the other prices in that postcode there's nothing exceptional about that property in anyway that I can tell
Soldato
Nope just needed a house to live in rather than the car, sure the values will have increased though, my point is about 100k properties as that's all we had
what are we trying to show here?
how is your house worth 300k if others are priced similar to the 100k yours was?
100k to 300k in a short space of time with light work obviously isn't the norm... is it a high flood risk,next to a trainline and directly under a flight path with a school next to it and a notoriously violent pub on the other side?
how is your house worth 300k if others are priced similar to the 100k yours was?
100k to 300k in a short space of time with light work obviously isn't the norm... is it a high flood risk,next to a trainline and directly under a flight path with a school next to it and a notoriously violent pub on the other side?
Soldato
Ha this is taking too much energy, let's call it luck and. Leave it there  
LOL very similar place to that for sale nearish me... £269950. Albeit it has a small garden but that is about the only difference.
https://www.rightmove.co.uk/property-for-sale/property-83303347.html