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The Great Hunt: Have you bought a repossession property?

2

Comments

  • Get your mortgage in place before making an offer. Go to a mortgage advisor and sort out how much you can borrow etc. and have a mortgage promise in place.

    Make your solicitor/conveyancer aware of any deadline. We viewed and surveyed ours in December, put our offer in soon after and appointed our conveyancer.

    We then had the estate ring up to say a higher offer was put in, which we then matched - the most we were willing to pay for it. They then put in a higher offer and we pulled out; effectively losing survey fees. Few weeks pass and the other person pulls out so we resubmitted our offer.

    Then it was fun and games chasing my conveyancer for 2 months. Missed the first deadline just about made the 2nd deadline due to me pushing the conveyancer to complete it quickly! Be prepared for this!! Finally completed mid-March.

    Ours was full of the previous occupants possessions so prepare to get your hands dirty on those tip runs! Was abit run down but a 2nd hand kitchen and bathroom suite off eBay sorted that out. We gave ourselves 6 weeks to get it livable whilst living in our rented house.

    Also, prepare for some hard work and long days. Worth it in the end though.
  • Kate21
    Kate21 Posts: 5 Forumite
    We bought a repossessed terraced house 20 years ago and still live there today. Some of the things we remember are:

    Be prepared for horrible smells and mess - if you have the ability to imagine what it will be like when you've redecorated, you could get a bargain since others might dismiss it.

    (The property was full of rubbish, with dog mess on the threadbare carpet, heavy cigarette smoke damage to the wallpaper and dog-chewed furniture, etc..)

    As the estate agent was working for the building society, there was no negotiation possible on price (they wanted more than the previous owners owed them), however we did manage to get them to agree to clear the house and remove the carpets... and the price of the 3 bed house was no more than a newer 1 bed nearby.

    We were rather surprised that it still took three months to complete the purchase from the building society, even though there was vacant possession and we were first time buyers. These things cannot be rushed, it seems.

    Keys were missing - so locks had to be drilled out and replaced.
    Entire light fittings had been removed - not just light bulbs and shades, so we had to buy new ones.
    Internal doors were also missing...

    Electricity was by an existing key meter (higher charges than standard) and the supplier made us wait six months before we could have a credit meter as it was our first home so we didn't have any credit history.......

    Water, heating and electricity could not be tested until after we moved in - and then we had to re-wire and re-plumb.

    The garden pond (which we didn't know existed) had been filled in with rubbish and bicycle parts - took a while to clear!

    Don't just go for a property because it is cheap - make sure you know the neighbourhood. Oue neighbours were very pleased to have us move in after the repossession and the house having been empty for some months.
  • Land_Registry
    Land_Registry Posts: 5,776 Organisation Representative
    First Anniversary Name Dropper First Post
    Glosjools wrote: »
    The sale price of the house has not been published by the Land Registry - apparently this is because the price wasn't typical of neighbouring houses - guess this means they got a bargain!

    More information around repossessions and how we use the House price index/data is explained online

    We also exclude repossessions from the Price Paid data as it may not have been sold for the full market value - a full list of exclusions is shown here
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • any idea of how to find repossess properties ? please, thanks
  • peak1
    peak1 Posts: 13 Forumite
    Jade - if you are browsing one of the property sites, look for rooms with no furniture in and no onward chain that does not look like it has been recently renovated. That will give you a strong indication that it could be repossessed.

    Also, looking again at the agents photos of the house we bought, I can see an A4 sheet of paper taped to the lounge window. It is the notice saying that it has been repossessed.
  • Possom
    Possom Posts: 433 Forumite
    e_clark wrote: »

    however all offers have to be publicly published for 7 days before exchange/completion etc, so just tell them you will wait for the other offer to be published before you consider adjusting yours!

    Do all offers on a repossessed house have to be published in a newspaper?

    Or, if there has been bidding by more than one party, do they only have to publish the highest offer after that bidding comes to a halt?
  • e_clark
    e_clark Posts: 14 Forumite
    Possom wrote: »
    Do all offers on a repossessed house have to be published in a newspaper?

    Or, if there has been bidding by more than one party, do they only have to publish the highest offer after that bidding comes to a halt?

    I wouldn't have thought so, I think it's just the highest offer at the time. Most local newspaper where the offers get published are only weekly, so presumably it's only the highest offer at the point of deadline for advert submissions, otherwise could be hundreds to list for that house that week. I'm not 100% certain of this! but it would make sense as the point of the offer being published is so that the bank has a chance of getting a higher offer! Therefore wouldn't be much point in publishing offers that have already been exceeded if you get me?
  • Possom
    Possom Posts: 433 Forumite
    Thanks e_clark.

    So the highest offer that they publish, are they legally required to publish this 7 days before exchange/completion, or is it that they usually do this in case they can obtain further bids, though they're not under any requirement to do this.
  • e_clark
    e_clark Posts: 14 Forumite
    Possom wrote: »
    Thanks e_clark.

    So the highest offer that they publish, are they legally required to publish this 7 days before exchange/completion, or is it that they usually do this in case they can obtain further bids, though they're not under any requirement to do this.

    I don't believe it's a legal obligation. However they are legally bound to accept the highest offer - if the sale price is less than the outstanding monies owed, the previous owner is liable for the difference. Therefore they have some obligation to show they have done what they can to get as much for the property as they can. It's why you want to exchange ASAP after the 7 days are up so that no one else can outbid you.
  • Possom
    Possom Posts: 433 Forumite
    e_clark wrote: »
    However they are legally bound to accept the highest offer -
    What would happen if they only received two identical offers? Sometimes a bidder can offer the same amount in order to prevent a bidding war.
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