The growing popularity of UK Property Raffles

UK Property RafflesOn this website you can follow links to all the live UK Property Raffles we have discovered so far. Further down the page we run you through some of the ins and outs of real estate raffles.

Devonshire Mansion Raffle –  Price per ticket £10, the minimum number of entries is one million. The closing date is 30th November 2018. The estimated value is £2.300,000 plus a Rolls Royce and runner-up prizes. Our webpage.

Roselands Bristol Cottage Raffle – Price per ticket £2, the minimum number of entries is 500,000. The closing date has not yet been set but you can register for the competition and receive a notification by email. The estimated value is in excess of £1 million. Our webpage.

Dagenham House – UPDATE – The website was recently taken down. Price per ticket  was £2, the minimum number of entries was 175,000. The closing date was 30th January 2018. The estimated value was  £300,000.

Yorkshire Farm Raffle –  Price per ticket £50, the minimum number of ticket entries is 28000. The closing date is 1st March 2018. The estimated value is £1,400,000. Special Christmas offer – Buy one ticket and get one free. Our webpage.

Northampton House Raffle – Price per ticket £2, the minimum number of tickets to be sold is 500,000. The the closing date is 1st February 2018. The estimated value is £1,000.000. Our webpage.

Greenwich Apartment – UPDATE – The event was withdrawn apparently due to too much press coverage about the multiple choice question. Price per ticket was £5, minimum number of tickets to be sold was not stated.

Scottish Mansion Raffle – Price per ticket £5, the minimum number of tickets to be sold is 250,000. The closing date is 9th December 2017. The estimated value is£1,250,000. UPDATE – Additional prizes have been added. Our webpage.

Knightsbridge London Property – UPDATE – Successfully won. Price per ticket was £5, the minimum number tickets to be sold was 300,000. The closing date is 15th December 2017. The estimated value is £1,500.000.

Blackheath London Property Raffle – Price per ticket £5, the minimum number of tickets to be sold is 114,000. The closing date was extended from 7th January to 7th May 2018. The estimated value is £570,000. Our webpage.

Converted Church Raffle Staffordshire – UPDATE 28.12.17 – Price per ticket £6, minimum number of tickets to be sold is 125,000. The closing date has been set for April 1st 2018. We could not see the value of the property stated on the website but estimated to be in the region of £700.000. Our webpage.

Berkshire River Thames House Raffle – UPDATE 29.12.17 – Spot the ball contest, price per ticket £25. Minimum number of tickets to be sold is 500,000. The closing date has been set for 28th March 2018 but may be extended by 3 months. Our webpage.

Manchester House Raffle – UPDATE 31.12.17 – Price per ticket £5, the minimum number of tickets to be sold is 135,000. The closing date has been set for 23rd April 2018. The estimated value is £240,000. Our webage.

Southampton House Raffle – UPDATE 1.1.18 – Price per ticket £5, minimum number of tickets to be sold is 100,000. The closing date is set for 9th June 2018. The estimated value is £230,000. Our webpage.

London House Raffle Woolwich – UPDATE 6.1.18 – Price per ticket £2. Closing date is set for 31st May 2018. The estimated value is not stated. Our webpage.

Legislation

Administering property raffles in UK has been left up to the UK Gambling Commission. They also regulate the National Lottery and casinos and gambling in general in the UK.

For the avoidance of doubt, a raffle has to include an element of skill, whereas a lottery is purely a game of chance.

In all other respects property transactions follow normal legislation except the Estate Agent is missing from the picture. The price is of course fixed by owners of house who set up the raffle.

All the terms and conditions of the sale should be included in the terms and conditions of the property raffle. The only difference is that new owners name cannot be added to the contract until UK property raffle draw has taken place.

The contract is not binding until it has been signed and exchanged in the normal way. The owners usually employ a lawyer to administer the sale and the raffle.

The winner is of course entitled employ a lawyer.

It is advisable to determine as far as possible that the raffle is legal in first place. Check the Terms and Conditions of a any UK property raffles before you enter. Make sure the tickets are refundable if the draw is cancelled. Beware, because house-owner is normally the fund-holder. This element could present some risk to entrants.

To date, we are aware of only one successful property raffle in the UK, it was known as Melling Manor and was valued at around £800,000. We are also aware of on failed house raffle at a substantial cost to the owners. We will update this website as time goes by.

Costs

Property raffles are normally a “turnkey operation” in the UK with all the costs being born by the vendor. The competition would not be attractive if costs were incurred by the winner.

Legal Fees, Land Registry and the cost of Stamp Duty would normally be paid by the vendor. The vendor would also pay any Capital Gains Tax which might be owing. They would also provide the Energy Performance Certificate.

Any outstanding mortgage on the property would be redeemed at completion.

Be aware that the cost fixed the property will include an element of fundraising for charity. This is due to the involvement of the UK Gambling Commission and it is a condition for a raffle to conducted in the UK.

Reasons for Raffling a Property

UK property raffles have become very popular this year. Most property owners who enter their properties in raffles have already been unable to sell them, especially at a high enough price to cover their debts. Many of these owners will have followed the dream without realising how difficult it would be to dispose of the property later.

Many property owners get forced into selling due to personal circumstances, relocation, divorce or simply losing their job.

If they are honest, most property owners who enter their properties in raffles would admit to having had disposal problems. For many owners it is a last-ditch resort. If you read many of the raffle home owners websites you will see many of them complain about Estate Agents providing bad service.  As a former Estate Agent I can tell you how difficult that job can be. Not all properties are as saleable as their owners think they are at the price they are asking.

Many property raffles have already been set up, but what should you look out for?

Tips and Advice for UK Property Raffles

There are a fair choice but caution is exercised. You should first decide whether you want to live in a property or location. For example, would you be able to work there?

If not you could always look upon it as a windfall and sell it on. Some owners include the initial running costs, so you could enjoy the property for a period.

It is not advisable to enter a raffle where taking up ownership would become stressful, or a millstone around your necks. Remember you might have a problem selling it in the future.

In the same way as you would if your paying the full price for the property make sure it is not blighted in any way. If you are unable visit the property, at least use Google Maps to check out the local area.

All the normal factors and considerations apply as when you are acquiring a property. Do not be tempted to take short cuts just because you may be winning the property in a raffle.

Remember, when you take ownership of a property it can become a liability as well as an asset. Make sure you are aware of the financial responsibilities which are attached to the property.

Apply a common sense approach and don’t get carried away. Remember, entering UK property raffles is gambling, do not spend more than you can afford. Gamble Responsibly.

The Element of Skill

The element of skill comes into play, usually with a multiple choice question which is asked at the time the entry is placed. The question has to be approved by the UK Gambling Commission and entries with incorrect answers are invalidated. The questions are not usually difficult to solve, especially in your own time.

The Gambling Odds

Although there is an element of charity involved in UK property raffles, surprisingly the odds are much better than the National Lottery. In the National Lottery, the odds are generally in excess of 45 million to one. The odds of becoming a Lotto millionaire are around 10 million to one. Remember that is per ticket. The odds of becoming a lottery millionaire less very much less than a fraction of a per cent.

The odds of winning UK property raffles are very much greater because a far lesser proportion of the proceeds are donated to charity, typically less than 10%. You can calculate the odds per pound from the details.