Buying a repo

welshwizard1927

We've found a great house that requires a fair bit of tidying up - cosmetic mainly. It's a repossessed property that we think has been on the market since before Christmas.

It was bought back in 2006 for £206k as a new build. My guess is that it was never worth that and explains why the current asking price is £155k.

We're thinking of going in with a cheeky offer of £130k (knowing full well it'll be rejected, but got to start somewhere). Houses nearby have sold for £149k but they're in a good state. Our maximum would have to be £143k. As we're ready to move and have an AIP, I wonder how much weight sellers will place on this ability to move quickly?

We also noticed that the house next door (previously owned by same people) has just been repossessed. Assuming the same lender, any likelihood that they'll be keen to get rid of the one we're looking at ASAP?

I've read a fair few horror stories about buying repossessed properties - such as the seller using delaying tactics and having a last minute offer come in much higher. Appreciate that this is a risk and potentially could cost money in terms of surveys, legal fees etc.

ValHaller

In your position, I would not negotiate above 140 and save the 3 to cover a late gazump. As I understand these things - from a background of zero - the gazump arises just before exchange, at which point you have laid out all your fees and are most vulnerable to a demand for more. If you don't get it for 140, well no wasted fees

I_have_spoken

Who is seller? Mortgage provider unwinding a BTL empire? I'd suggest realistic price is set by the rental income that would give a 7% yield, less the cost of making good.

welshwizard1927

The property was clearly bought by the current owners on a BTL basis. Mortgage provider was (the apparently now defunct and nationalised) Mortgage Express.

Any ideas how the NHBC warranty will be affected by the sale? I know caveat emptor takes on a whole new meaning when it comes to repos.

G_M

This thread is 5 months old!

And touting for business is not permitted.

Reported.