What;s the best way to devalue a house?

[uber]

I have a friend who’s aunt went bankrupt and thus, faces the risk of losing her house. The house was recently valued at £225k (last nov). My friend has access to £170k which includes all his savings etc. Due to his credit history he has been told it would be all but impossible to obtain a mortgage for the rest unless he get screwed on rate etc.

The deal with the trustee is they intend to do a survey on the house to get a current value, this brought forward the idea that it might be possible to devalue the house short term so his aunt can keep her family home. Would removing some of the bathroom, messing up the back garden, mess with the carpets etc do much to the value? The last thing anyone wants to see is his Aunt thrown out her home and it sold cut price anyway to a dealer.

[B17NNS]

I don't see this going well for you.

[Jasandjules]

Is there no way someone else in the family can raise the rest of the money?

Deliberately destroying a house in this way COULD be criminal damage (something at the back of my mind says that it these circumstances that might be the case).

[Rude-boy]

Don't try this.

If it were a question of £10k or so then taking a sensible approach to discussing the situation with the valuer and might be very rewarding ultimately. With this sort of gulf though this is just not going to be enough and if they were to attempt to intentionally devalue the assets they would be in very hot water.

[Sam_68]

Leaving the gas on while you go for a weekend away, then switching the lights on as you return home would probably do the trick.

HTH

[ShadownINja]

Convert the downstairs - all of it - to a single open space. Would be legit but doubt many people would want to live there.

[uber]

Jasandjules said:

Is there no way someone else in the family can raise the rest of the money?

Deliberately destroying a house in this way COULD be criminal damage (something at the back of my mind says that it these circumstances that might be the case).

Myself and a few other people have offered to chip in but he's really not one to borrow from friends.

I think I should try and talk him round again

[PaulHogan]

You should a) delete this thread, and b) look up 'obtaining a pecunary advantage by deception' in the fraud section of a good criminal law text book

[andy43]

M'kay, so she has gone bankrupt, so owes money to creditors, including, presumably, mortgage payments to one of those nasty nasty banks.
Why don't you, sorry, your mate, just use some of the £170k to pay her debts off?

[bint]

My old landlord managed to get his marital home condemned whilst going through a divorce. Lack of plumbing, damp and central heating helped. Somehow bought it back for a song and promptly gutted, extended up and out front and back and has a rather nice place now - did have to live on reduced goods and tesco value for several years, as well as cash in hand tenants like myself....

Not saying you should do it, but it can be done..

[hidetheelephants]

Find Mr. Trebus' long lost twin brother, move him in and he'll have it lined with piles of newspapers, rat-infested boxes, unwashed dishes and random objects retrieved from bins; before you know it, the neighbours will be complaining and the value drops like a heavy thing that gravity has just noticed.

[StevieBee]

uber said:

The house was recently valued at £225k (last nov). My friend has access to £170k which includes all his savings etc. Due to his credit history he has been told it would be all but impossible to obtain a mortgage for the rest unless he get screwed on rate etc.

On the assumption then, that the £170k is unencumbered, then that equates to a 75% deposit.

The £225k valuation was done at a low point on house values so is reasonable to expect this to rise. in the future.

Given the circumstances, if the house was on the open market, I'd reckon on a final price of around £210k - maybe £215k (further increasing the deposit ratio.

Now, I'm no Financial Adviser but I'd suggest the first thing to do is at least apply for a mortgage as the risk to lender is very small which is likely to offset any dubious credit history - unless your friend is a complete financial numpty but if he has £170k, he can't be that bad!

Even if he has to suffer a higher rate initially, this is not permanent.

DON"T attempt to devalue the house. As stated by others, it's illegal. Simple as.

[Jasandjules]

I am wondering if you could contact the Lender and offer them £170k now for it? Could save them all the hassle of trying to evict her etc. then the risk of auctioning/selling it? And the time it is spent on their books will be costing them as well?

[JuniorD]

Jasandjules said:

I am wondering if you could contact the Lender and offer them £170k now for it? Could save them all the hassle of trying to evict her etc. then the risk of auctioning/selling it? And the time it is spent on their books will be costing them as well?

Better idea night be to offer £167k, keeping the £3k over to buy an MX-5 for a bit of fun in the sun.


Sorry