Conveyancer Kathryn Burrell advises on benefits and pitfalls of buying repossessed properties
The attraction to purchase a repossessed property should always be considered carefully as the pitfalls may sometimes outweigh the benefits in the cold light of day.
People often view repossessed properties as a way to obtain “a bargain” without considering the full picture.
It is true that some repossessed properties are being sold below the market value, however once you put an offer in for the property a notice has to be placed making the general public aware of the offer that has been placed prompting other interested potential buyers to place a higher offer for the property. The Sellers are usually the original lenders of the first mortgage (or sometimes 2nd charge owners). They have an obligation to accept the best offer for the property at the same time as keeping the property fully marketed during the purchase procedure.
The Buyers will be given a timescale to reach exchange of Contracts “the point of no return” and only at that stage will the property be taken off the market. Time scales vary as to cash buyers with a longer period being given (no more than 1 month given to buyers obtaining a mortgage).
If a higher offer is put forward during the purchase procedure the Sellers Solicitors (via the Estate Agents) will advise the Buyers of a higher offer being made, without having to divulge the amount of the higher offer, with the request to the current buyers for them to confirm if they are willing to put in a higher offer and giving details of the highest offer they can accommodate.
To achieve an exchange of Contracts to secure the deal is the aim of all involved.
Purchasing a repossessed property can be a very stressful business and not a decision taken lightly.
The other pitfalls of a repossessed property are that no history of the property i.e. damp proof course, electrical works, gas works or replacement windows will be readily available. The fixtures and fittings contained in the property are not owned by the Seller with no title to these being passed on.
Repossessed properties are sold and completed most weeks of the year. As long as you go into the procedure knowing the pitfalls with a Conveyancer who will keep all involved updated it may be the way of obtaining your perfect new home.
At Watson Ramsbottom you will find that everyone in our Conveyancing Departments have dealt successfully with buying repossessed properties.