I believe you would always want to set a reserve (transparency) & in most cases you would want that reserve to be a figure that is defensible in court if necessary. Obviously the best way of doing this is via the VG or a local valuer/real estate agent. Why? Because they are independent of the process. I don’t believe using the last LV supplied by the VG is a satisfactory reserve because as we all know LV’s bear no relationship to the market value in most cases.
If the land was a piece of land with little or no worth then the amount of outstanding rates may be a suitable number as a reserve.
I don’t fully agree with Tracey’s comment “that all you are trying to do is clear the debt”. Whilst that maybe the outcome intended you still have to achieve the best price for the property which is being sold. There have been several instances over the years (sorry don’t remember all the names etc) in which there has been court action over the sale price or reserve & the aggrieved owner considered it too low.
Just some things to consider in the process.
