FTB – should we buy a repossessed property?

xiaoweiwei

We are fist time buyer and newbie to the property market, we are thinking of buying a repossessed 2 bedroom flat which is about 10% cheaper than the market value in the area.We know that area very well because we are living there.

Can anyone tell me what we will lose if someone bid higher price. What I can think of at the moment are: lender’s survey fee, arrangement fee,

Since we are very inexperience, should we really buy a repossessed property?

poppysarah

You got to move quick with mortgage to get a repo - get a good & fast solicitor.

Solicitors fees too if they've started work.

Check all fees to do with maintenance and service charges before buying a flat.

Kez1983

I bought a repo as a FTB and completed on it last week after 25 days of stress! A higher offer was put in at the last minute but due to having a good solicitor (who didnt mind me emailing daily!) and mortgage broker (who text me updates daily!) and also a good EA who I actually felt like was on my side (maybe they just wanted it sold and off their hands!!) I got my house! :j

All I can say is if you go for it get a good solicitor in place and push everything through as much as you can!

newmee

Kez1983 wrote: »

I bought a repo as a FTB and completed on it last week after 25 days of stress! A higher offer was put in at the last minute but due to having a good solicitor (who didnt mind me emailing daily!) and mortgage broker (who text me updates daily!) and also a good EA who I actually felt like was on my side (maybe they just wanted it sold and off their hands!!) I got my house! :j

All I can say is if you go for it get a good solicitor in place and push everything through as much as you can!

Totally agree with this. I too bought a repo as a FTB and managed to get in within the 28days! An exciting/scary/busy/stressful time! Moved in Christmas week, no central heating and 4 month old baby. No regrets though. Go for it as long as you're not the type to say....Well I won't ring X again, I'm sure everything is going to plan!! Ring, Ring, Ring!

redlady_1

I lost £1500 whilst going after a repo. Not because someone out bid me but because the repo company hadnt done their job properly and only repossessed the top floors (their was a flying freehold of a cupboard). Be very careful and get a very good solicitor. Oh and a good mortgage company. Some have a turnaround of 8 weeks!!!

xiaoweiwei

Thanks for the info guys.
I can imagine push for a repo property is going to be stressful moment, but the proeprty price is far too high in our area, unfortunately we can only afford repo price, not the normal price in the market.

evening_all

Myself and my partner went to view a repo house a few weeks back. It's the first time we've ever viewed a repo and was totally shocked at the state of the house and what a mess it was left in. We later found out that the estate agents found a gun in the cupboard after the previous tennents had been evicted. I suppose you find lovely houses though, which arn't in this state but it put me off looking at them.

G_M

Just because it is advertised at a 10% discount does not mean it will sell at that price. Bidding wars can push the price up.
remember with a repo just beacause they 'accept' your offer does not mean they stop advertising, and they are VERY likely to accept higher offers.

Last one I bid on, one solicitor I approached was so confident of being able to move ultra fast and clinch the deal for me I said 'OK give me a no sale no fee agreement'. They agreed. I was gazumped by a last minute very high offer but did not have to pay the solicitors a penny (not even search costs!).

rachaelventers

I'm trying to buy a repossessed property - thought everything was going through great (even completing within the 28 days) on the 27th day my solicitor told me the sale would not be going through as the lease had been forfeited (it's a flat leasehold) and the sellers solicitors were having to apply for Relief from Forfeiture which may or may not be granted - 3 weeks on I'm still waiting to find out if their application has been granted or if it has to go through the courts (I may have to wait for 2 months and that's without court action).

So good luck, I hope you find something, just be wary of everything!

Rachael

P.S. Can anyone explain why it took 'til the day before I was due to exchange for them to discover that the lease had been forfeited - surely it shouldn't have been on the market until the lease was sorted?