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Bank-owned flat: making an offer?
Comments
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How much is the property worth to you? No-one else can tell you what you should be paying.
You should take into account however that the tenant may not move out when expected and that this could drag on.0 -
Just want to draw attention again to the question of price implication: What discount would you look for in this situation?
Hi redonion
As others have said, this isn't a useful way of looking at things. If it's a repo, it will go to the person making the highest offer.
So, in theory, I guess the question you should be asking yourself is "How much are others going to offer for the property?", and then offer slightly above that number (assuming the property is worth it to you at that price).
But, of course, that's what all the other interested buyers will be doing as well.
On a more practical level, make sure the EA knows you are interested in the property, so he/she keeps you informed. Ask the EA what he/she thinks the property will sell for. Obviously EAs have their own agendas, and will tailor their answers accordingly. But the EA wants to sell the property, and giving 'silly' advice to potential buyers probably wont help them.0 -
Why would you expect a discount on the property simply because the current legal owner is in possession of a banking licence?
Risk of tenants not getting out and completion being delayed.
Less info from owner.
More risk of damage to property between viewing and when you complete.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Risk of tenants not getting out and completion being delayed.
If the property is vacant at exchange , this isnt relevant , if the guy offers well under based on assuming the tenants wont move out on completion, then he wont likely win the property anywayNever, under any circumstances, take a sleeping pill and a laxative on the same night.0 -
Because banks are known for accepting any gazumping offer, derailing sale. .....
Err, wouldn't that be an argument for not trying to get a 'discount'? Surely, the lower your offer price, the greater the chance that someone else will come along and 'gazump' it?Risk of tenants not getting out and completion being delayed.
Less info from owner.
More risk of damage to property between viewing and when you complete.
The same would be true of any tenanted property. I can't think of any particular reason why things would be different just because it is "bank-owned flat".0 -
The same would be true of any tenanted property. I can't think of any particular reason why things would be different just because it is "bank-owned flat".
It is because the bank will offer it on a take it or leave it basis, unwilling to enter into litigation to get VP.
they may well not have the owners paperwork and you might not know what tenancy they have. What if they just renewed for 2 years?
A private vendor is more likely to help to get a sale.
With service charges, if there is a big bill or historic charges that come to light later, there is no recourse to a mortgagee seller- its take it as it is, unlike a normal sale.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
Buying it is the same as buying a private sale, although they won't be able to give info on day when the boiler was serviced etc, and your offer needs to reflect this.
I disagree, even a bank has to comply with regulations concerning gas safety.
OP you need to find out exactly what type of tenancy this tenant has. If they have been there a long time it may be an 'Assured Tenancy' or even a 'Regulated Tenancy', either of these could mean there is no possibility of getting the tenant out. (Which may be the reason he is still there)
Buying a place with a tenant in situ means you have even less rights than the original landlord except where the tenancy is definitely an AST, and don't just take anyone's word for it, a new document is easy to produce but will never remove the rights the tenant started with.0 -
propertyman wrote: »...With service charges, if there is a big bill or historic charges that come to light later, there is no recourse to a mortgagee seller- its take it as it is, unlike a normal sale.
I thought the OP had already highlighted the fact that the bank was not a mortgagee seller, but rather the registered owner of the property. So it is a 'normal sale'.0
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