Tenants buying a repossessed house???

Hi,

My friend and I currently rent a property but recently an order of possession was served on the house because the landlord has defaulted on his mortgage repayments. We will be evicted in due course once a warrant for possession is issued.

However, we would quite like to buy the property ourselves so my question is, do you think that the mortgage lenders would be willing to pass the old mortgage to us or create a new one for us; obviously, subject to us paying for surveys and a solicitor, etc? Also, would they still strip the house of all the finishings if they did indeed allow us to buy the house? (Naturally, our own possessions have nothing to do with the landlord and we were not complicit in his downfall)

We haven't approached the solicitors acting on the lender's behalf yet but would appreciate any advice that users of this site might be able to offer.


Kindest regards,
Pete

Replies

  • rosysparklerosysparkle Forumite
    916 Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    You would have to apply for a mortgage yourselves, you won't be able to take over your landlord's mortgage.

    Your landlord's possessions would form part of the particulars of sale and would be part of the negotiations. Offer the landlords a low figure for their f&f.
  • Gold_ShogunGold_Shogun Forumite
    244 Posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    My friend and I currently rent a property but recently an order of possession was served on the house because the landlord has defaulted on his mortgage repayments. We will be evicted in due course once a warrant for possession is issued.

    However, we would quite like to buy the property ourselves so my question is, do you think that the mortgage lenders would be willing to pass the old mortgage to us or create a new one for us; obviously, subject to us paying for surveys and a solicitor, etc? Also, would they still strip the house of all the finishings if they did indeed allow us to buy the house? (Naturally, our own possessions have nothing to do with the landlord and we were not complicit in his downfall)
    They won't "Pass the old mortgage to you", but provided you have the income to cover it, you should be able to get a new mortgage.

    Mortgagees in Possession would NEVER "strip the house of all the finishings" as it is of no value to them (but rather = increased costs) ... Once the occupier's contents & furnishings are removed, the property is normally sold pretty much as it stands.

    The fact that you are already resident won't actually give you much of an advantage for purchasing (except perhaps = time & possibly being taken more seriously), as the MiP's are legally bound to make reasonable efforts to achieve the market value (to prevent the ex-owner from "crying foul") ...
    ... In practice, this means that they house would be valued as normal, you would then put in your (below value) offer (for quick purchase as sitting residents), and the MiP would then usually put an ad in the Local Papers notifying anybody who wished to put in a better offer to do so within so many days.

    Might I also suggest that you start chasing your Landlord for any Deposit you have paid, as logic suggests that if you have been paying him rent which he has pocketed instead of paying his mortgage, then he is quite likely to do a Moonlight Flit with your money or fail to refund you ... The mortgage company has NO liability for your deposit.
    Democracy is two wolves and a lamb voting on what to have for lunch.
    Liberty is a well-armed lamb contesting the vote.

    - Benjamin Franklin
  • epz_2epz_2 Forumite
    1.9K Posts
    banks need to get the best market value, your landlord only needs to get enough to pay back the bank what they have borrowed.

    i would speak to the landlord and see if there is any possibilty of you buying it off them, saves them getting repossessed and having to live without credit for years and you get it at the price they paid for it a few years back plus bank charges.
  • Friends of ours put in a very cheeky offer for the place that they rented when it was being repossed and got it for £100k less than market value.
    They contacted they bank directly and put the offer in and to their surprise it was accepted. It meant that them and their 3 children did not have to move, go for it with a low offer and take it from there
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