Gazumping insurance

circuit

We are FTBs looking to buy a reposession and are in competition with a property development company at the moment. We really want to get gazumping insurance as our finances are stretched to breaking point as it is. Does anyone know who would offer this? Google searches are drawing blanks (a company called OneMove seems to have offered it but have no details on their site). I found a thread on here about Tesco offering the same thing, but it seems to have been withdrawn.
Reposessions are advertised for seven days after the offer has been accepted, so with another party interested - potentially a cash buyer - we are at quite a high risk and would rather fork out a relatively small premium than lose a month's wages.

QTPie

circuit wrote: »

our finances are stretched to breaking point as it is.

Do you really want to buy now if your finances are stretched to breaking point?

The property market is SOOOO uncretain at the moment, as is the economy, as are many jobs... If you are over-stretched, then all you need is the smallest thing to go wrong, then you are in trouble...

QT

circuit

We have plenty of cash available generally, but currently (this month) our reserves are down to zero having got exactly what we need for moving, deposit etc. More money will come within a couple of months, but not weeks. Hence my post asking for info on insurance. If we get gazumped we will be stuck and we are looking to move ASAP due to rental contracts coming to an end. As long as we have the money this shouldn't be a problem as there's a lot to choose from.

Job security: I work in debt counselling and he works in benefits so job security is not a problem - both are expanding rapidly at the moment. Don't worry, we have done the maths. I pay a LOT more in rent than I will on a mortgage.

So, back to my original question; does this kind of insurance still exist?

david29dpo

Sounds like you could be in a contract race so gazumping is not an issue.

Richard_Webster

The trouble with this kind of thing is that if it is only those that are really concerned about it take up the insurance, the risk factor for the insurers is so much greater so the premiums would have to be higher, and probably not worth while for most people.

Unless a lot of people take it out and spread the risk further the premiums would not be at an acceptable level.

A lot of solicitors have a no sale no fee scheme, but this generally only applies to their professional fees rather than search fees etc that would be dead money if the transaction did not proceed. Some of these schemes will rely on insurance and only provide the cover if it is not the buyer's "fault", which could lead to some interesting arguments.

Sometimes it will come down to the people you deal with. If the seller is shady and doesn't want to talk to the buyer, the buyer is bound to be more suspicious that something will go wrong and might not want to do business wit the seller. If more buyers backed out because of secretive non-ciommunicative attitudes on the part of sellers then perhaps more sellers would be encouraged not to be so defensive. Of course the seller can be as nice as anything and still change his mind at the last minute.

The big point here, however, is that in this market why are we talking about gazumping? The avaerge seller has more to be worried about the buyer gazundering him!

barnaby-bear

david29dpo wrote: »

Sounds like you could be in a contract race so gazumping is not an issue.

I'm pretty sure repos aren't counted as gazumpable as you are told they are legally obliged to carry on trying to get a better price - so you'd probably not be allowed to claim in the small print. It sounds like a contract race too (especially as they've been informed as such as is legally necessary)

alisonp_2

circuit wrote: »

We are FTBs looking to buy a reposession and are in competition with a property development company at the moment. We really want to get gazumping insurance as our finances are stretched to breaking point as it is. Does anyone know who would offer this? Google searches are drawing blanks (a company called OneMove seems to have offered it but have no details on their site). I found a thread on here about Tesco offering the same thing, but it seems to have been withdrawn.
Reposessions are advertised for seven days after the offer has been accepted, so with another party interested - potentially a cash buyer - we are at quite a high risk and would rather fork out a relatively small premium than lose a month's wages.

Any Insurance Companies I have dealt with which provide insurance for losses to a buyer exclude contract races - the risk would be far too high.

circuit

Thanks for the info, this is all very helpful.