Allsop Auction and VAT on second hand resi sales

Palerider

Registered User
Messages
1,500
I have looked at the Allsop listings for a long time, this Friday I will attend and plan to bid on one property for sure, maybe two.

The first is straight forward so no comment needed, the second has a form of words contained as an addendum to the contract that in my view is designed to confuse, it suggests VAT is payable on the hammer price on a 2nd hand residential property let from get go...the build stage is 10+ years ago which also could mean as VAT is reclaimed on the property build that VAT is surely payable on the rent income.

Allsop have not replied to two requests for further clarification which right now means two things to me, 1 ....Buyer beware big time when it comes to Allsop and 2... do a lot of homework and review the legal pack, get professional advice where you are uncomfortable, I think that particular property which has a low reserve will go 50% more than reserve minimum and some sucker will buy without realising until they have paid their deposit which should by the way include VAT that they are caught paying up to 23% more, maybe 13% at best than the hammer.

I have seen this once recently in a private treaty sale for a 2nd hand residential home and am baffled by this, caution required.

Any one with experience of this new feature ( to me at least ) of VAT added to 2nd hand houses for sale..?
 
Why don't you stand up in the middle of the auction when this property comes up and say out loud "is this subject to VAT"
 
I thought of that however from the outset the Auctioneer makes it clear that those bidding are assumed to have appraised themselves of all matters relating to the property and not to bid unless these are understood and in this instances this VAT issue is covered in the legal pack documents, an easy answer for them and I'm no better off.
 
All the other potential bidders in the room who may be unaware of the issue would be better off.

Also Allsops would in practice be forced to address the issue meaningfully rather than just a bland reference in the legal pack.

I have been at a number of auctions where issues were raised from the floor, and in each case the auctioneer immediately withdrew the property.

In the one case which I saw the outcome, (a challenge to the title of the seller) the matter was resolved and the property auctioned later.
 
Back
Top