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Repossesion ! To buy or not to buy ????

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  • Repossesion ! To buy or not to buy ????

    As a first time buyer who was for want of a better word been STIFFED by a vendor, I am now looking at buying a repossesion. Hearing all kinds of horror stories about people getting outbid at the last minute has got me wondering if its worth the trouble. Its from an estate agent and not an auction, any advice would be most welcome. Thanks in advance

  • #2
    Re: Repossesion ! To buy or not to buy ????

    Hi,

    The lender will obviously never have occupied the property and consequently will not be able to answer the usual enquiries that would be raised of an owner-occupier. There could be a Property Information Questionnaire in the Home Information Pack if it was first marketed when this was required, though it may not contain the specific information you are looking for; and in the place of a Property Information Form there will usually be another, much shorter document, which basically points out that you must rely on your own investigations.
    There will be certain things, such as planning permissions, NHBC certificates, building control completion certificates that you will need but the lender will often not hold. You may ask the lender’s solicitors to obtain copies however they are under a duty to mitigate costs and will usually advise that you must obtain them at your own expense. Although they may suggest indemnity insurance for certain things, most standard policies will require you to confirm certain things that only a person with past knowledge of the property could confirm, for example in respect of lack of planning permission, that the work that has been done is at least 12 months old. You may therefore need to obtain a bespoke policy, which if it can be obtained at all would be more expensive.
    As the seller won’t be able to give you any information about any disputes, it is worth trying to speak to the neighbours to check if there are any issues, such as access or boundary disputes, that you ought to be aware of.
    The lender’s tactics when disposing of properties are to do so as quickly and cheaply as possible and limit any liability which it might have following to completion the minimum possible. This can be frustrating for a purchaser but it has to be remembered that they have a duty to the repossessed borrower to act in such a way as to mitigate their loss.


    Regards,
    Jhonny

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