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The idea will probably be on the table at some point, whichever party comes to powerLabour isn't committing to an extra tax on people's gardens. Its manifesto only promised:
"We will initiate a review into reforming council tax and business rates and consider new options such as a land value tax."
A Land Value Tax is a tax on the potential value of land itself, ignoring anything that's built on it. It isn’t being proposed as an additional tax, but as a potential replacement for council taxes and/or business rates.
The business rate and council tax system have been widely criticised for being unfair and inefficient, and Land Value Tax is an idea that’s been around for over 150 years.
The idea has also been promoted by economists across the political spectrum, including the free-market Adam Smith Institute, the left-leaning Centre for Labour and Social Studies, the non-aligned Institute for Fiscal Studies and the Economist, a liberal magazine.
International organisations like the IMF and the OECD are also fans, as was the economist Milton Friedman, whose ideas underpinned Margaret Thatcher’s economic policies.
The Conservatives have also promised a review into the business rates system. So it seems likely that the idea will be considered in a review at some point, whichever party comes to power.
The idea is also put up for consideration in the Liberal Democrat manifesto and the Green party suggests a trial of the tax.
I think you are right to be suspicious. Firstly, why would a buyer - or anyone financing that buyer - be making an investment which they are claiming to fall 'drop a steep amount' in the next 90 days ? That just doesn't add up. Secondly, are they saying that your property is going to fall in value, or those in the same area, or those in London, or the whole of the UK ? As someone who knows a bit about property, I can assure you that nobody anywhere is making such predictions.
Best way to handle the situation is just to chill and be patient. Providing the offer you accepted was only 'marginally smaller that your neighbours, then you are in control. If he tries to drop the price a later stage just say 'no thanks' - he'll either proceed because he's already paid expenses out, or he will back out. Don't panic, the flat will still be worth the same. Just one small thin you should to. Go onto Rightmove/Zoopla etc and check out 'sold prices of others in your block [if you haven't done so]. You may find your selling to low, not too high...
The value MAY go down in the short term.
But it will vastly increase in the long term
I bought my London flat in 1979 for £14,000, sold 5 years later for £23,000.
Value now? circa quarter million.
Tell him to pay up or do one.
Sorry but it has nothing to do with election/gov/housing market, it is standard practice of banks to only lend what they would expect to get back with a 90 day enforced sale, so if the buyer fails to pay defaults,then the bank would expect to get all of their money back
My best guess would be that it has been misread, how do you think anyone would know what the housing market is going to go down or up,certainly by that amount, the operative word here is the 90 days one, its what banks do, believe me I have been there and done that, the buyer does not have enough deposit/money or the ratio to lending is very high, banks do this all the time, look up banks 90 forced sale lending
Blue in the face,you're gonna be red in the face pretty soon if you listen to this crap.If the banks were that good at telling market trends there would have never have been a financial crisis.Plus the fact that something like this would be huge news.He's trying it on.
just tell them to **** off or else you will come for their family? always workd for me
The wording is simply "Projected Market Value (90 days)"
We've heard loads of guff about the banks being more stringent since 2008. But it seems odd. It could be that the buyer's lending power isn't that good and this is a bracket which gives the bank the excuse to be more conservative.
I do think politics is having an impact like you say.
Thanks Monkfish. Everything you've said is spot on.
It's great I could come to CCMB and get some rationale thinking because it's hard to do so when the stakes feel high.
Thanks Sneggy. I held tight and said no.
Definitely. I actually used the words "do one" in the email to the agent
THANKS FOR ALL THE HELP FOLKS!!!
XXX
Just for fun how about the idea that property prices in London are about to crash because May
has clearly failed to provide enough police to protect all the homes there from crazy terrorists ?
Finance and property depend on " confidence " and more and more people have no confidence
in our Weak and Wobbly PM.
I've had an offer for a flat accepted and it's looking like I will have moved by the time City play again - should I have made my offer on the proviso that there is a Conservative party win on Thursday?