A repossession property as a first time buyer - any advice welcome!

wattsthethoughts

Afternoon guys, hoping to get some advice about a property my partner and I are interested in buying and thought this forum might be able to help! We are first time buyers and never expected we would be in this sort of situation first time round but such is life... The property in question is a repossession (or as the EA likes to call it, a “corporate sale”). The situation is pretty sad, husband died suddenly and left wife and young kids with gambling debt she wasn’t aware of. She was evicted over two years ago now but has remained in the house due to a ‘grace’ period awarded by the lender until it sells. The house was listed 4 months ago at 250k, dropped to 240k about a month later and then down to 230k another month after that. EA very frank with me and said even at 230k it’s still overpriced and I’m in total agreement. As far as I’ve been told, it’s had 16 viewings in 4 months but not a single offer. It needs some work and love put into it. It has some quite offensive Artex ceilings throughout that I’m almost certain contain asbestos which will cost thousands to remove. It has one sentence as the full description, the pictures are awful, there is no floor plan and it is being marketed as a 3 bed semi but in reality is 2 up 1 down which, whilst that suits us perfectly, has been putting people (specifically families) off even when the EA has managed to get them inside. We have been trying to book another viewing since Thursday but I’m told the ‘owner’ has been making the process as difficult as she can for the EA which, whilst it’s annoying for buyers, I completely understand why. We’re pretty sure that we’d like to place an offer but as it’s a repo, we will need to move a lightning speed if it’s get accepted to want to make sure that we’ve done our research and got a figure in mind prior to the second viewing. I’m considering putting an offer in at 20% below the current asking but fear that it might be too low. I know the saying “if you’re not embarrassed of your first offer then it’s too high” but this does just seem insulting. However, it won’t be the ‘owner’ I’m insulting, it will be the original lender. I know this amount is more than enough to pay the mortgage off as I have already done the Land Registry searches. I guess I’m just wondering whether anyone has had any experience in this kind of situation before and if there is any advice on how to proceed?

davidmcn

wattsthethoughts said:

However, it won’t be the ‘owner’ I’m insulting, it will be the original lender. I know this amount is more than enough to pay the mortgage off as I have already done the Land Registry searches.

The LR searches won't tell you what is actually owed to the lender, and in any event that's irrelevant - the lender has a duty to take reasonable steps to get the best price they can, whether that's above or below what they're owed.

No such thing as "insulting" in this context, it just depends whether somebody else will offer more.

wattsthethoughts

davidmcn said:

wattsthethoughts said:

However, it won’t be the ‘owner’ I’m insulting, it will be the original lender. I know this amount is more than enough to pay the mortgage off as I have already done the Land Registry searches.

The LR searches won't tell you what is actually owed to the lender, and in any event that's irrelevant - the lender has a duty to take reasonable steps to get the best price they can, whether that's above or below what they're owed.

No such thing as "insulting" in this context, it just depends whether somebody else will offer more.

I honestly think that it's marketed so badly that no-one else is even bothering with it and the only ones that have, had their own issues with it. The only reason we even found it was because we'd viewed another property with that agent and he mentioned that it could be something we were interested in so sent me the link directly. Otherwise we would've breezed past it and been none the wiser. Thank you for the info though! You're definitely right in that I don't know what the amount owed is. I guess I'm just working based on the assumption that in 4 months they've not even had a nibble.

hazyjo

Blimey, -20% is an awful lot. 

Nothing ventured nothing gained I suppose. Not sure how seriously I'd take you as a buyer though...

macman

So you'd be buying a property without vacant possession? Run a mile unless the vendors confirm that you will have vacant possession before exchange. 
She can't have been 'evicted' if she is still in the property two years later. Any possession order granted would presumably now have lapsed, and the eviction process would have to begin again, which will take 9-12 months or more.

wattsthethoughts

macman said:

So you'd be buying a property without vacant possession? Run a mile unless the vendors confirm that you will have vacant possession before exchange. 
She can't have been 'evicted' if she is still in the property two years later. Any possession order granted would presumably now have lapsed, and the eviction process would have to begin again, which will take 9-12 months or more.

This exact issue was raised by a family member too and is something I'll be raising at the second viewing I have booked in later this week. 9-12 months is an awful long time indeed. I shall definitely check that too as the original lender is hoping to complete within 28 days (not set in stone quite like an auction house but still want it done quickly). This is why I posted on here! All of this is so useful - thank you!

wattsthethoughts

hazyjo said:

Blimey, -20% is an awful lot. 

Nothing ventured nothing gained I suppose. Not sure how seriously I'd take you as a buyer though...

Haha - I'll perhaps not go so low then. Just chancing my arm based on the lack of interest and the state of repair.

davidmcn

wattsthethoughts said:

It has some quite offensive Artex ceilings throughout that I’m almost certain contain asbestos which will cost thousands to remove.

So don't remove them. You can skim over them. Even if they contain c. 1% asbestos they're hardly a deathtrap.

wattsthethoughts

davidmcn said:

wattsthethoughts said:

It has some quite offensive Artex ceilings throughout that I’m almost certain contain asbestos which will cost thousands to remove.

So don't remove them. You can skim over them. Even if they contain c. 1% asbestos they're hardly a deathtrap.

This has made me feel slightly better about them haha. Thank you! 

trix-a-belle

If it were me i'd be running a mile and finding something else, if the resident is making viewings difficult what makes you think she will actually leave once the sale is agreed (& won't do damage to the property if she does leave)?
With a repo you get even less security then a normal purchase as anyone who comes along with a higher offer before you exchange can gazump you.
Why is it so appealing? you agree its overpriced & potentially needs expensive work, from the layout description its sounds fairly unremarkable & generic and something that you could find elsewhere without the glaring alarm bells of this one

theoretica

The lender can want to move fast all they like, but it's been unsold for 4 months so they clearly aren't getting what they want!  If they don't have an offer that can complete sooner then they don't have many options to moving at your speed.