How reliable is the recorded previous sold price?

[randomlife 10]

Is it just as stated by the owner when registering the property or it's legally obligated to be accurate?

[GrannyGranny 10]

It has to be registered at Land Registry but you can also check previously sold prices on lots of websites including rightmove and houseprices.co.uk.

[randomlife 10]

that's my question. is the price shown on land registry reliable?

[GrannyGranny 10]

I'm not an expert but I'm presuming the Solicitor or EA has to register the sold price with Land Registry not the seller.

IMO its not that relevent how much the seller bought the house for its what you want to pay for it thats important unless you want to know for a different reason ie. tax.

[ccit 10]

The price at the Land Registry might be the one given to them but it doesn't always reflect the value of the property. A couple of years ago one sold in my neighbourhood for £80,000 less than its true value because it was sold cheaply to relatives. Also, I know of a property that 'sold' for about £40,000 more than any other similar properties (it is a very poor area with sub standard homes). This one was also in poor condition. It never came onto the market and it was some property firm that did the transaction so there was something wrong there.

[GrannyGranny 10]

Thats not the norm though is it?

 

Most of the prices are the true value.

 

Its not hard to make a judgement.

[ccit 10]

It may or may not be the norm - I have no idea. I only responded to the OPs post regarding the reliability of the previous sold price as it seemed pertinent to the question.

[LR Rep 10]

We use the the sale price (known as consideration) which is taken from the legal document which transfers ownership of the property, namely the TR1. The sale price is also added to the Stamp Duty Land Tax form submitted to HMRC.

 

The price paid data does not reflect the current value of a property, it is the price paid at the time of the sale. Our online FAQs re Price Paid Data explains more.

 

The price paid entry which appears on most registers is also the sale price as stated in the TR1.

[Jeffrey Shaw 89]

Post #8 is correct. The 'price' shown might however be a mere valuation, under scale 2 in Schedule 2 to the Land Registration Fees Order- e.g. if the transfer is by way of gift- as the basis on which the Scale 2 fee is payable.

 

[by the way, LR Rep is a genuine officer of HMLR- so his comments are reliable.]