Marital property has been repossessed

GDB2222

user1977 said:

JGB1955 said:

My daughter bought a re-possessed house.  It was bought, from memory, for something like 15% less than 'the going rate' for similar houses in the road.  I think they paid £120K, their neighbours sold (in the same year) for £140K.  Because my daughter bought at 'below market value' the sale isn't shown on Land Registry public records because it was 'discounted'.

.....Just so you get an idea of what price might be achieved.... 

In my experience repos generally sell for normal prices (for the condition they're in - obviously they tend not to have been well-maintained in latter years or tarted up for the purposes of marketing). So I would value it in the same way as for any other property.

In a slow market, a repo has to be priced to sell pretty quickly, whereas an owner occupier can usually wait for a better price. 

user1977

GDB2222 said:

user1977 said:

JGB1955 said:

My daughter bought a re-possessed house.  It was bought, from memory, for something like 15% less than 'the going rate' for similar houses in the road.  I think they paid £120K, their neighbours sold (in the same year) for £140K.  Because my daughter bought at 'below market value' the sale isn't shown on Land Registry public records because it was 'discounted'.

.....Just so you get an idea of what price might be achieved.... 

In my experience repos generally sell for normal prices (for the condition they're in - obviously they tend not to have been well-maintained in latter years or tarted up for the purposes of marketing). So I would value it in the same way as for any other property.

In a slow market, a repo has to be priced to sell pretty quickly, whereas an owner occupier can usually wait for a better price. 

Yes, it'll go for the price achievable by a seller who wants a quick sale - but if it's an area where properties are selling quickly anyway, that might not make much difference. And I've seen "doer-uppers" attract a lot of competitive bidding.

GDB2222

BeingMe said:

It’s a long story but basically I received negligent legal advice in a half hour free with a solicitor before I left him - essentially I was told I’d be lucky to exit the marriage with only my debts and not some of his too. Knowing his record with money, this terrified me. I moved into rental and we did a diy divorce without a financial order in 2013. 

I later discovered this was incorrect advice and went back to court. I self repped until the final hearing whereas he had a very aggressive solicitor who dumped him right before the final hearing. A consent order was granted whereby I was to receive half the equity. He had three months to raise a mortgage and failing that, was to list the property for sale. 

I wish I’d been told at that point that I should get a CO as his solicitor then registered his own (I’m guessing for unpaid legal fees) but I stupidly believed XH the many times he promised he was about to list the property. Then Covid happened. I found the court process traumatic and we still had the ongoing child arrangements case going through court so I just couldn’t face it until this year.

The property is in his sole name as is the mortgage. Zoopla estimate the value between £175k and £260k so putting a proper value on it is difficult. It was valued at £190k in 2016 according to his ex gf (he lied about the value in court). The house was actually my childhood home and was sold to us by my parents. It’s a good sized Victorian, on a quiet street with beautiful views so does have a lot going for it. On the negative side I’ve been told he’s ripped out a lot of original features and it’s probably not in a good state of decoration. Plus there’s loads of furniture laying around and the door handles have been smashed off, presumably by bailiffs. 

This is what I’ve worked out so far:
value: £200k maybe? I know it will be sold at less than its market value as well but this is where I’m finding it difficult to estimate. 
mortgage: £40k
mortgage arrears and interest: maybe £10k? Hard to say as I don’t know how long ago he stopped paying the mortgage.
CO1: solicitors fees maybe £30-£40k plus statutory interest and fees
CO2: unpaid council tax maybe £20-£30k plus interest and fees
repossession costs: I read £17k is average but not sure
sale fees and solicitors fees: £5k? Is that realistic? 

I’m owed £70k plus £15k cms arrears

That sounds a lot better than I expected when you first posted. The damage to the property doesn’t sound too bad, and as long as it is still mortgageable a buyer, buying to occupy the house himself, will hopefully look past the superficial issues and pay pretty much the full value.  

GDB2222

user1977 said:

GDB2222 said:

user1977 said:

JGB1955 said:

My daughter bought a re-possessed house.  It was bought, from memory, for something like 15% less than 'the going rate' for similar houses in the road.  I think they paid £120K, their neighbours sold (in the same year) for £140K.  Because my daughter bought at 'below market value' the sale isn't shown on Land Registry public records because it was 'discounted'.

.....Just so you get an idea of what price might be achieved.... 

In my experience repos generally sell for normal prices (for the condition they're in - obviously they tend not to have been well-maintained in latter years or tarted up for the purposes of marketing). So I would value it in the same way as for any other property.

In a slow market, a repo has to be priced to sell pretty quickly, whereas an owner occupier can usually wait for a better price. 

Yes, it'll go for the price achievable by a seller who wants a quick sale - but if it's an area where properties are selling quickly anyway, that might not make much difference. And I've seen "doer-uppers" attract a lot of competitive bidding.

Indeed. Some people seem to go mad for a repo, paying over the odds. One reason is that they know the property needs to be sold, and the sellers are not in a chain.  That is worth something, particularly  in a very buoyant market.

SuseOrm

There’s also the duty of care aspect that the mortgage lender has to be seen to achieve the best price possible in the market they can’t give it away for too much below the three Estate Agents valuations that they must get.  

BeingMe

I’ve been anxiously checking Rightmove and it’s gone on today for £180k so at least £20k less than I thought it would. From the photos it’s not looking nearly as bad as I feared. I just hope at least a couple of people want it and get into a bidding war but there’s always the possibility that someone will offer less and as the bank will want a quick sale, will just accept it. So all in all not terrible news but not great either. Everything hinges on how much is owed to his other creditors. 

Edited to add that it’s within walking distance of a very good high school so hopefully will appeal to people sending their children there.

GDB2222

Listing at £180k may well get a better final result than listing at £200k. As you say, it’s about getting several people interested.

diystarter7

JGB1955 said:

My daughter bought a re-possessed house.  It was bought, from memory, for something like 15% less than 'the going rate' for similar houses in the road.  I think they paid £120K, their neighbours sold (in the same year) for £140K.  Because my daughter bought at 'below market value' the sale isn't shown on Land Registry public records because it was 'discounted'.

.....Just so you get an idea of what price might be achieved.... 

Depending on where it is, London and other places where prices still going up and often in every town where people see it as a nice area, the 15% discount won't apply as those selling the property have a legal obligation to get the best price and that is via auction I believe.

Therefore a property bought in London in 2008/9 for 400k may be worth close to a million.
I've noted west midland prices have shot up percentage wsie as well as have all nice areas in almost every town/etc.

TBagpuss

OP, the charges will be paid off in the order that they were registered in, so if yours was the last to be registered, the others will be be paid in full and  then you get what's left, up to  the amount needed to settle your charge. 

letthemeatcake

Surely if XH has added 2 charging orders since your consent order then it should come out of his share.

Also who was responsible for paying the mortgage on the property as this is usually included in a Consent Order?  If he was responsible there is usually a clause put in that would make him liable for any losses you suffer as a result of him not paying. Have a look at the Consent order again and see what it says regarding the lump sum, any sale or if it is a straight lump sum buy out of your share.