Buying a house through a bank

ellbels95

Just wondering if anyone can advise. Very long story short we have been in the process of buying a house since August last year. This house has been going through the repossession process as we have been buying it and unfortunately the bailiffs were there yesterday and they have taken possession of the house. The mortgage company were aware that a sale was going through and have said they would be happy for us to buy it off them ( I’m finding it hard to believe this despite this being said to our solicitors) 
On top of this there are about 5 charges and unilateral notices on the title deeds which is why it’s taken so long to sort out as the sale price does not pay these off in full.

so my question is if we do go through and buy it through the bank the amount we are paying pays their side of things off with a bit left over. Will they just be able to remove these charges upon completion? 

ellbels95

I should add when asking the mortgage company about these charges they have said they are only bothered about what they are owed.

user1977

Yes, assuming it's being repossessed by the lender which holds the first charge then (generally speaking) they get first bite at the cherry and any subsequent chargeholders just have to put up with what's left (if anything). Not your concern.

But more of a concern ought to be that the bank will need to market the property, they can't just do a private deal with you. So be prepared for some competition.

Bookworm105

yes the charge will be removed. 
The bank has a debt owed to it by the borrower, if there is a shortfall on sale of the asset securing that debt then the bank can go after the borrower but they cannot make the charge roll over to a new owner since the new owner is not the person who owes them money.

SDLT_Geek

ellbels95 said:

Just wondering if anyone can advise. Very long story short we have been in the process of buying a house since August last year. This house has been going through the repossession process as we have been buying it and unfortunately the bailiffs were there yesterday and they have taken possession of the house. The mortgage company were aware that a sale was going through and have said they would be happy for us to buy it off them ( I’m finding it hard to believe this despite this being said to our solicitors) 
On top of this there are about 5 charges and unilateral notices on the title deeds which is why it’s taken so long to sort out as the sale price does not pay these off in full.

so my question is if we do go through and buy it through the bank the amount we are paying pays their side of things off with a bit left over. Will they just be able to remove these charges upon completion? 

As others have said, a sale by a first mortgagee "overreaches" later mortgages.  That is explained here: https://www.gov.uk/government/publications/transfer-under-a-chargees-power-of-sale/practice-guide-75-transfer-under-a-chargees-power-of-sale

If one buys from an overborrowed seller, there is a concern as to whether the seller can pay off all of the loans secured on the property to give you good title.  That concern does not apply buying from a first mortgagee.

As @user1977 says, you mind find the property is remarketed and you will have to compete with anyone else who wants it.

ReadySteadyPop

SDLT_Geek said:

ellbels95 said:

Just wondering if anyone can advise. Very long story short we have been in the process of buying a house since August last year. This house has been going through the repossession process as we have been buying it and unfortunately the bailiffs were there yesterday and they have taken possession of the house. The mortgage company were aware that a sale was going through and have said they would be happy for us to buy it off them ( I’m finding it hard to believe this despite this being said to our solicitors) 
On top of this there are about 5 charges and unilateral notices on the title deeds which is why it’s taken so long to sort out as the sale price does not pay these off in full.

so my question is if we do go through and buy it through the bank the amount we are paying pays their side of things off with a bit left over. Will they just be able to remove these charges upon completion? 

As others have said, a sale by a first mortgagee "overreaches" later mortgages.  That is explained here: https://www.gov.uk/government/publications/transfer-under-a-chargees-power-of-sale/practice-guide-75-transfer-under-a-chargees-power-of-sale

If one buys from an overborrowed seller, there is a concern as to whether the seller can pay off all of the loans secured on the property to give you good title.  That concern does not apply buying from a first mortgagee.

As @user1977 says, you mind find the property is remarketed and you will have to compete with anyone else who wants it.

Interesting info.