House prices and stamp duty

[TimberWolf]

We currently have a flat, which last summer when things were at their peak reached a healthy value of around £280k. With the current drop in prices (though I haven't had it valued yet) I would estimate the value at around £265k.

Optimist. At the peak one of the flats in our block sold for £250K. One is up for sale now at £210K and the owner has rented it out rather than waiting for a buyer because he knows it won't sell at that price.

Considered renting it out and bagging a bargain?

[wonderwaif]

Apologies if I missed this on the news, but with all this talk of plunging house prices do we know when we can expect our houses to be re-banded into a lower Council Tax bracket?

Yours Hopefully
Wonderwaif

[DimPrawn]

Apologies if I missed this on the news, but with all this talk of plunging house prices do we know when we can expect our houses to be re-banded into a lower Council Tax bracket?

Yours Hopefully
Wonderwaif

After the next election.

[expat]

Apologies if I missed this on the news, but with all this talk of plunging house prices do we know when we can expect our houses to be re-banded into a lower Council Tax bracket?

After the next election.

[ferret]

Hi all.

We currently have a flat, which last summer when things were at their peak reached a healthy value of around £280k. With the current drop in prices (though I haven't had it valued yet) I would estimate the value at around £265k.

We want to move on and find ourselves a house. However, with the stamp duty bracket being £250k, does that completely screw us over when trying to sell? I'm assuming that no one is going to offer more than £250k - which effectively reduces the value of our place by around £10-15k.

Does anyone have any experience with this, is that the case? Is there anything I can do about it?

I was wondering if you could tempt buyers into buying at £250k, but making a private payment to us of £10k - so we still get what we feel is right for the property, but they still benefit from paying the lower stamp duty threshold. But something tells me that this is going to be illegal?!

I suppose in some ways, we have to hope that the market continues to plummet, meaning that the true value of our property lowers to £250k, and of course the value of our potential new house will be lower too.

Tricky one...

You snoozed, you loosed (yeah yeah, chuck the speling! icon at me if you want).

As others have suggested you will be very lucky to get anywhere near £250k for it now. Halifax report an 8.8% reduction so far this year (leaving you with a property "worth" more like £240) and a drop since peak of 11.2% (more like £236k.)

This means you do not have to worry about stamp duty, you simply have to try and sell the place, that will be challenge enough.

With mortgage approvals at record lows buyers appear to have gone on strike. Put it on for whatever you like but you won't get more than a handful of viewings and offers well below your asking price if you are lucky.

The in-laws put their house on the market in May, 3 viewings so far. One of these is apparently really interested in the house but have to sell theirs first. If they sell it will only be well below advertised price so this will affect what they can pay along the chain.

The crash has well and truly arrived. You held your cards for too long. Shame that. Good news is that you can buy cheaper as well. If I was you I would chuck it on the market anyway, there are still a few mugs out there so you may get lucky.

[TykeMerc]

Apologies if I missed this on the news, but with all this talk of plunging house prices do we know when we can expect our houses to be re-banded into a lower Council Tax bracket?

Yours Hopefully
Wonderwaif

No chance irrespective of what government is in power, once a tax is in place and collecting it will carry on doing so. Plus of course it's a local rather than national tax and Councils are not famous for efficiency.

[wonderwaif]

No chance irrespective of what government is in power, once a tax is in place and collecting it will carry on doing so. Plus of course it's a local rather than national tax and Councils are not famous for efficiency.

Can't agree there. The paint hadn't dried on our new extension when someone who looked like a council snoop was round taking pictures.
I'm awaiting the arrival of the letter telling me I've got to pay more Council Tax as I'd rather spend my money employing local tradesmen to improve my house than p1ss it down a drain in some Spanish resort.

[TykeMerc]

Can't agree there. The paint hadn't dried on our new extension when someone who looked like a council snoop was round taking pictures.
I'm awaiting the arrival of the letter telling me I've got to pay more Council Tax as I'd rather spend my money employing local tradesmen to improve my house than p1ss it down a drain in some Spanish resort.

Oh they're efficient at increasing the tax they charge, but that's not news I'm sure.

[b0redom]

You used to be able to offer £5k (ish) toward fixtures and fittings which would be outside stamp duty - I think it was a grey area, but that has been well and truley stamped on.

If you're confident you can get £265k for it the best thing to do as has already been said, is offer to pay the stamp duty....

[dang65]

The paint hadn't dried on our new extension when someone who looked like a council snoop was round taking pictures.
I'm awaiting the arrival of the letter telling me I've got to pay more Council Tax.

As far as I know, Council Tax bandings can only be changed upwards when the house is sold. If you improve it, add an extension etc, and then carry on living there then you should be ok. They can be adjusted downwards at any time if you appeal because you think you're in the wrong band for some reason.

As for bandings being re-evaluated because property prices have dropped... as long as all property prices are dropping at a similar rate everywhere then the bandings surely remain the same. Otherwise, the properties on the lowest band would have nowhere to go and you'd have to create Band -A or something. Properties don't get re-banded upwards when their price goes up because of the market.

And the Council Tax itself is hardly likely to drop, is it.