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Making an offer - bankrupt vendor

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Happy new year to all.

So, my long term plan is to relocate at the end of 2025 or early 2026 to live nearer family. Naturally I cannot help but to take a peak at the properties available currently.

I have noticed a great property on with a well known estate agent. I will add a bit of colour: its 5000 sq ft and 600k, which save for a few properties is top end for the area.

After a google address search I have noticed that the owner was made bankrupt about 16 months ago. Apologies if this might seem to be an immoral question but is this potentially a scenario where I could try to land a bargain? I do presume its still the bankrupt vendor trying to sell it but at what point do creditors just want their money?

To be honest, I do sense that the property is keenly priced for a sale but the local market is generally a slow one. I would have planned to negotiate hard regarding a 5% discount irrespective of the bankruptcy. Should I now be aiming for 10%.
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Comments

  • cymruchris
    cymruchris Posts: 5,562 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    user1977 said:
    If the vendor is bankrupt then it won’t be themselves selling, it’ll be the insolvency practitioner. No particular reason why it will be more of a bargain than any other seller trying to sell reasonably quickly.

    If anything it'll be less of a bargain potentially as the official receiver has to maximise the value of recovery to the estate. No harm in trying.
  • GDB2222
    GDB2222 Posts: 26,204 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    There’s a limited pool of buyers for a 5000 sq ft property. Doubly so if the price is right at the top end for the area. 

    Whilst the TIB needs to market the property properly, he also needs to sell. Unlike a private seller, he can’t hang on waiting for someone prepared to pay top dollar. 

    So, I’d put in an offer, and the worst that could happen is that it’s turned down.

    Incidentally 5000 sq ft would cost at least £1m to build at the moment. 
    No reliance should be placed on the above! Absolutely none, do you hear?
  • eddddy
    eddddy Posts: 17,984 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 24 March at 1:07PM


    After a google address search I have noticed that the owner was made bankrupt about 16 months ago. 

    Did you cross reference the bankrupt's name with the property owner's name on Land Registry?

    If not, for example, it could be a bankrupt son/daughter who is back home to live with their parents because they have no money for rent/buying anywhere. Or a number of other possibilities.


  • Albermarle
    Albermarle Posts: 27,801 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    The day to day bills for such a large property will be pretty big, and possibly some very hefty maintenance/repair/building/redecorating costs.
    Apart from the price you need to be sure what you are taking on. Big is not always beautiful. 
  • I might be out of date here but I think some sorts of bankruptcy can be discharged after a year so after 16 months, the seller may no longer be bankrupt
    (My username is not related to my real name)
  • Offer what you think it is worth/what you are prepared to pay, like with any other house. 
  • RAS
    RAS Posts: 35,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I might be out of date here but I think some sorts of bankruptcy can be discharged after a year so after 16 months, the seller may no longer be bankrupt
    The IP has three years in which to commence a sale, even if the BR is not paying an IPA.
    If you've have not made a mistake, you've made nothing
  • I appreciate all the replies. All points are relevant and help me to think it through. I have no idea what I will do but if anything exciting happens I will update!

    To be clear, it would be a fine home first and foremost... but nobody likes to overpay. A drive by today shows me it needs painted and the drive is a bit overgrown now. Maybe it's now empty. The advert did say "no onward chain".

    And so if I do offer it might be a bit lower but I am talking a few percent. If the IP wants to reject then they potentially risk no activity for 6 to 12 months in the local market, then that would be their choice.
  • GDB2222
    GDB2222 Posts: 26,204 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 1 January at 10:45AM
    Offer what you think it is worth/what you are prepared to pay, like with any other house. 
    I don’t think that helps the op, really. He wants to negotiate, and he is wondering how best to do that. He has said it is a thin market, and the seller may well be keen to make a quick sale, and the op may be the only buyer for the time being. 

    Bear in mind that 5000 sq ft may mean 7 or 8 bedrooms, and not that many people have need for so many. Many people want one more bedroom, but maybe not four more! 
    No reliance should be placed on the above! Absolutely none, do you hear?
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