Buying a repossession with a second charge…

user1977

boss7 said:

user1977 said:

boss7 said:

In response to the other comments above, it is exchange on hammer. I have tried to seek legal advice and have gone to a specialist conveyancer who say they deal with this sort of sale. They did mention the 'overreaching' but they did not give much more detail. They also told me they haven't managed to spend much time on it given short deadlines.

But you are nevertheless going to get them to do a proper review before the auction, yes? There are, after all, 101 other possible problems, any of which might explain why the property is in an auction rather than being sold conventionally...

I had hoped to, but it may not be possible as bids are in the next two days. 
I have contacted them to ask them to do so and waiting for reply. 

Can you give me an example of a couple of the biggest of the 101 issues!?
My view is that it is being auctioned due to it being inhabitable. It has some damp too. It is not mortgageable in its current state. 
No viewings are allowed for this property, but I have looked through the window. 

All sounds very risky, but I am already bdudgeting for  a full gut out and refurb. It is a small apartment for context. I guess auction sale is risky be definition and not for everyene. Maybe not for me either, we will find out!

I may be very naive about it, but aside from the LR issues, I am not too sure what else could be catastrophic and hiding away, which a conveyancer can tell me? Happy to receive some tips if you have them!

Why is it uninhabitable (if that's what you meant to say?). Are viewings not allowed because it's dangerous to enter? Presumably that means you also haven't had it surveyed?

If it's a flat (and we've already determined it's in England or Wales), then it's almost certainly leasehold - so have you read the lease? Do you understand it? How is the building managed? What's currently happening with any communal works, or the service charge account?

Yes, you do sound very naive - my best tip is it's really a bad idea to start bidding in property auctions if you don't know what you're doing, and aren't even engaging professionals to help you.

propertyrental

You have not answered the Q about the auction. Is it

* traditional? If so, do not bid unless you have had legal advice or are very legally savvy yourself (which appears not to be the case). Also do not bid unless you have cash for the full amount of your bid, or a firm mortgage offer on this property (not a Mortgage in Principle). Likewise with survey/condition evaluation.

* modern method? Walk away.

boss7

I think I did answer that earlier. It is exchange in hammer. Traditional. 

I am on top of the management company situation and service charge account. There is a potential liability there of 2-3k but I know about it and have factored it into my sums. 

So for me the main issue comes back to the land registry situation with the second charge. I think I have an answer on that from a couple of very kind forum members on page one. 

I am trying to take advice again from the solicitor as members have scared me into it! Of course you can never be too careful so I agree with those saying take advice. Just that we really are up against time. Also don’t want to spend too much as may not win! A couple of conveyancers I contacted wanted obscene money to look at the legal pack. 

Thank you all for taking the time. All comments are appreciated. 

Tiglet2

boss7 said:

I think I did answer that earlier. It is exchange in hammer. Traditional. 

I am on top of the management company situation and service charge account. There is a potential liability there of 2-3k but I know about it and have factored it into my sums. 

So for me the main issue comes back to the land registry situation with the second charge. I think I have an answer on that from a couple of very kind forum members on page one. 

I am trying to take advice again from the solicitor as members have scared me into it! Of course you can never be too careful so I agree with those saying take advice. Just that we really are up against time. Also don’t want to spend too much as may not win! A couple of conveyancers I contacted wanted obscene money to look at the legal pack. 

Thank you all for taking the time. All comments are appreciated. 

Unfortunately, if you want a solicitor to look at the legal pack you will have to pay them for their time and expertise.  They would also have to prioritise your purchase above their other clients due to the short timescale.  You shouldn't consider buying this property otherwise.  

As it's a leasehold property, have you read the lease and noted how long is left on the lease term and if there are any onerous ground rent clauses?

boss7

Tiglet2 said:

boss7 said:

I think I did answer that earlier. It is exchange in hammer. Traditional. 

I am on top of the management company situation and service charge account. There is a potential liability there of 2-3k but I know about it and have factored it into my sums. 

So for me the main issue comes back to the land registry situation with the second charge. I think I have an answer on that from a couple of very kind forum members on page one. 

I am trying to take advice again from the solicitor as members have scared me into it! Of course you can never be too careful so I agree with those saying take advice. Just that we really are up against time. Also don’t want to spend too much as may not win! A couple of conveyancers I contacted wanted obscene money to look at the legal pack. 

Thank you all for taking the time. All comments are appreciated. 

Unfortunately, if you want a solicitor to look at the legal pack you will have to pay them for their time and expertise.  They would also have to prioritise your purchase above their other clients due to the short timescale.  You shouldn't consider buying this property otherwise.  

As it's a leasehold property, have you read the lease and noted how long is left on the lease term and if there are any onerous ground rent clauses?

Appreciate that point and very happy to pay for advice. But I have been quoted some prices that are obscene, i.e. more than a conveyancer would charge to deal with a regular sale in totality. Anyway, I am trying to take that advice. 
I am aware of the lease conditions in terms of length of lease and there isn't any doubling ground rent, etc. There is a RTM and managing agent who I have been in dialogue with. I have examined accounts, etc. etc. 

Thanks again for all members advice and comments. Let's see what comes of it.