6 Month Rule on a repossessed property

Danielle1311

Hoping someone can help as I am at a loss now!

I have viewed a house and would like to purchase however the property is a repossession and is currently owned by the bank BUT has been for less than 6 months?
I know the halifax wait 6 months before lending but does this still apply when it's a repossession and if so is there a way of me finding out when the bank took ownership so I can find out when the 6 months would be up?

Thank you in advance

Mr.Generous

No it does not apply, repo's attract a lot of developers though, and the banks or "Corporate Sellers" do like cash buyers who don't get surveys. Been outbid on a repo by a buyer who wanted to get a mortgage and live in it but the seller decided to go for our lower cash bid.

Danielle1311

Thank you! Thats a relief at least as hopefully we might be able to make progress now.
The situation seems to be getting more and more complex for me!
The house was repossessed and is owned by the bank (or at least I am sure it is as the power supply has been cut off, property has been left inside etc) and it's Spicerhaart who are dealing with it which makes me think even more so? They are not within my area so have passed it onto a local estate agents.
We put an offer to them (through our local estate agents) and they got back to us asking for proof of deposit and mortgage offer in writing. Our mortgage advisor sent this over to them and they replied with this....

"The above AIP is with Halifax, they are not on the limited lenders list as our clients have not owned the property for more than 6 months."

I am at a loss as to what the next steps would be?
Is there a way of knowing for sure it was repossessed and who currently has ownership? I am in Scotland

davidmcn

The bank doesn't own the property, it's still owned by their borrowers - the bank are exercising their power to enter into possession of and sell the property. The six month rule isn't relevant. I suspect you might be dealing with someone who is confused...

The CML Handbook says this:

5.1 Length of Ownership 5.1.1 Please report to us immediately if the owner or registered proprietor has been registered for less than six months.
5.2 Seller Not The Owner or Registered Proprietor
5.2.1 Please report to us immediately if the person selling to the borrower is not the owner or registered proprietor unless the seller is:

• a personal representative of the registered proprietor; or
• an institutional mortgagee exercising its power of sale; or
• a receiver, trustee-in-bankruptcy or liquidator; or
• a developer or builder selling a property acquired under a part-exchange scheme; or
• a Registered Housing Provider (Housing Association) exercising a power of sale.

Danielle1311

What would you recommend I do? It's new to me so I have just been going on the information given to me by my financial advisor and the estate agency.
Its the estate agency that have said Halifax are not on the list of lenders? Thanks :-)

davidmcn

Danielle1311 wrote: »

What would you recommend I do? It's new to me so I have just been going on the information given to me by my financial advisor and the estate agency.
Its the estate agency that have said Halifax are not on the list of lenders? Thanks :-)

Ah, you've edited your post. Perhaps it isn't a repossession? e.g. it's being sold on by someone who bought it from the bank? In which case what you're being told makes more sense. Who does the Home Report say the seller is?

Danielle1311

Yes sorry I re read it and realised I could have provided more information.
The home report says
C/O Spicerhaart Cooperate Sales
Skyways Commercial Campus
Blackpool
FY4 3RS

When I went on their site and read what they do I thought perhaps they are selling it for the bank?

davidmcn

Danielle1311 wrote: »

Yes sorry I re read it and realised I could have provided more information.
The home report says
C/O Spicerhaart Cooperate Sales
Skyways Commercial Campus
Blackpool
FY4 3RS

When I went on their site and read what they do I thought perhaps they are selling it for the bank?

Are you sure the Home Report doesn't say who the seller is? Not sure they're meant to keep it anonymous. I've only encountered Spicerhaart in repossessions. Maybe best get your solicitor to sort it out if the estate agents/mortgage advisors aren't being much use.

Danielle1311

It definetely just says

Customer - National Property Trade

Customer Address - Spicerhaart....

Date Aug 2016

The letting agent said to us when we asked that it was a repossession then our mortgage advisor said it wasn't and it's owned by a letting company?

When we went to view it though it even looks like a repossession.
I have even spoke to the next door neighbour but all she knew was that the young guy left all of a sudden and that was in the summer which would have been around about the same time the home report was carried out.

Is there a way of getting confirmation as to whether its definitely repossessed or not? I don't want to pay a fee for anything incase it doesn't even show up.

davidmcn

Danielle1311 wrote: »

It definetely just says

Customer - National Property Trade

Customer Address - Spicerhaart....

Date Aug 2016

The letting agent said to us when we asked that it was a repossession then our mortgage advisor said it wasn't and it's owned by a letting company?

When we went to view it though it even looks like a repossession.
I have even spoke to the next door neighbour but all she knew was that the young guy left all of a sudden and that was in the summer which would have been around about the same time the home report was carried out.

Is there a way of getting confirmation as to whether its definitely repossessed or not? I don't want to pay a fee for anything incase it doesn't even show up.

Right, National Property Trade are one of the "we buy any house" shysters, so not a repossession and what you've been told about the six month rule does make sense.

If you're making offers it would probably help if you did it via solicitors and then they can give you some guidance about this sort of thing.

Danielle1311

Ah ok you have helped this make so much more sense than before! Thank you!

So I am wrong and in actual fact it's this company national property trade that own it? Is that right yes?
Is there any way of me being able to find out what date exactly it was that they took ownership? all I have been told is its less than 6 months. However the home report was carried out in August? The house just went on the market in November?

We have the mortgage promise in place from the halifax now so if the 6 months was nearly up we could hopefully be in with a chance?
Ideally holding of until completely necessary for a solicitor incase he charges the earth!