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Buying Repossessions Guide

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
3 replies 6.9K views
MSE_Helen_SMSE_Helen_S MSE Staff
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MSE Staff
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling

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  • davidmcndavidmcn Forumite
    19.3K posts
    Part of the Furniture 10,000 Posts Name Dropper
    I would say you're being a bit optimistic about the bargains to be had. In my experience repo properties seem to be selling at the prices you'd expect for the condition they're in, and in popular areas can fetch good prices. Banks do want to sell reasonably quickly, but they don't just snap up the first offer going.
  • eddddyeddddy Forumite
    10.3K posts
    Tenth Anniversary 10,000 Posts Name Dropper
    I think this comment is hugely misleading:
    It’s possible to pick up repossessed or distressed properties at up to 30% off the market price.

    Repossessed properties sell at their true market price. I think what you are trying to say is something like:
    Repossessed properties are sometimes unmodernised and poorly maintained, and the vendor will want a quick sale.

    Unmodernised, poorly maintained properties where the vendor wants a quick sale can sometimes sell for 30% less than similar modernised, well maintained properties where the vendor does not specifically need a quick sale

    So if modernising and repairing the property costs less than the 30% difference, you could have a bargain.

    If modernising and repairing the property costs more than the 30% difference, it's probably not worth bothering.

    Also you seem to have missed out really important considerations like:
    • Is the property likely to mortgagable?
    • You're likely to need more ready cash (as opposed to mortgage)
    • The increased risk of losing legal fees, survey fees and mortgage fees - because the vendor has a duty to accept late, higher offers.

    And finally, you say:
    Your best bet is to visit the property several times, crucially, with a solicitor or surveyor.

    Why would you take a solicitor to visit a property???
  • kawaiiukkawaiiuk Forumite
    30 posts
    We are buying a repossession, it was a rented property and seems to be in pretty good condition, the landlord wasn't paying the mortgage.

    It has gone smoothly so far, although its been a swift learning curve when we realise how quickly they wanted to complete and that anyone could put an offer in until completion.

    One hiccup now though as I mentioned in another thread, we are due to complete next week and we have just discovered that there is a management company overseeing the estate who money is owed to. However the management company are ignoring all efforts of our solicitor, the vendors solicitor and the estate agents to chase it. We can't complete until settled or we become liable for the debt!! Bit of a nightmare.

    Otherwise so far I would recommend a repossession, we certainly couldn't have afforded on this estate without them dropping the price for a quick sale.
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