What is different when buying repossessed property?
The main difference with a repossessed property relates to who is selling it. When repossessed, possession goes back to the mortgage lender, which can mean you won’t get as much information about the property as you otherwise would expect.
This is because the ‘normal’ dialogue and amount of information that is available in a standard sale of a property may not be available. For example, there may be little or no information on who the current providers are for services to the home. It is also important to get a good survey conducted as you may not be aware of the faults that could become very costly if the transaction is successful. It is also vital that all the relevant searches are conducted on this type of property.
It may seem illogical to spend money on surveys and solicitors fees for this type of property in advance of exchange and completion, because, unlike other property transactions, the bank has an obligation to get the best price for the property. The mortgage lender can accept better offers right at the last minute. However, if you are successful, you do not want to find you are left with a financial drain as a result of there being extremely costly issues associated with the house.
How do you buy a repossessed house?
When buying a repossessed house, there is usually a stipulation that you should be able to exchange and complete within 28 days. This is so the lender who currently possesses the property can recoup their money quickly.
This means that you need to be able to proceed straight away if your offer is accepted. There is always the chance that another buyer will make a higher offer right up to the point of exchange, which the seller is obligated to accept, so this should be kept in mind. All surveys and searches will need to be carried out before the deadline in order for the sale to go through.
Other than the speed of the proceedings and the risk of another party making a higher offer before everything is finalised, buying a repossessed house isn’t too dissimilar to a standard property purchase. It should be noted that the seller won’t be doing any works on the property in order to sell it in the same way that standard vendors would, but not all repossessed houses need refurbishment.
Why choose conveyancing solicitors specialising in repossessions?
Due to the fact that repossession property sales generally need to be completed quickly, it can really pay off to choose conveyancing solicitors specialising in repossessions because they will understand the challenges that this type of purchase can bring and have the experience needed to get it across the line.
If you would like more information on conveyancing for repossessed property contact our specialist conveyancing team on 01616 966 229 for a free, no obligation initial chat with one of our legal advisors, or request more information via our online enquiry form.