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Property Conveyancing Farleys Solicitors LLP

Repossessed Property Solicitors

Repossessed Property

When a house is repossessed, it is the mortgage lender who will, more often than not, be selling the property. The process of buying a repossessed property takes a slightly different form to that of buying a regular property. Without the correct legal advice and guidance, you could end up out of pocket or, worse still, without a property.

Buying a Repossessed Property

Repossessed properties can often end up costing a lot less than regular sales because the lenders will want to sell the house as quickly as possible, although at the best price possible. As such, the lender selling the property will impose strict deadlines for exchange of contracts and completion.  If you are reliant upon mortgage finance for your purchase, it is therefore imperative that you have this in place and are certain that your lender can achieve a quick turnaround.

The (usually) less-than-market price of a repossessed property reflects the fact that the seller will have no knowledge of the specifics of the property usually found in the Property Information Form. It is therefore advisable to have a professional survey completed on the property before any offer is made, as most lenders will not accept “subject to survey” offers from potential purchasers. You may also consider speaking to the neighbours about the area and carry out a full set of searches.

After your offer has been accepted, most lenders will leave the property on the market in case a higher offer comes in. This common practice may not seem fair and may leave you out of pocket but, with the correct legal advice and representation, a quick turnaround can be achieved to help protect against this.

A large number of repossessed properties are sold at auction.  If you are looking at purchasing such a property, you should consider our Auction Property Sales and Purchases page in conjunction with the advice on this page.

Unlike in regular purchases, the buyer need not be concerned as to whether the sale price is sufficient to discharge all the financial liabilities registered against the property.  Provided the property is sold by the proprietor of a first legal charge that pre-dates the other registered interests, the sale by a mortgagee in possession will override these. Our conveyancers will make sure this is the case for you.

From a practical perspective however, buyers of repossessed properties often find themselves receiving letters, telephone calls and even visits from the previous owner’s creditors.  In such circumstances, you should refer them to your conveyancer, who will explain to them that they remain the responsibility of the previous owner.

Buying a Repossessed Leasehold Flat

Repossessed leasehold flats present particular issues, as it will be necessary for your conveyancer to consider information from the freeholder and/or management company. Some lenders are reluctant to provide this information due to the costs usually involved, whilst others will insist the buyer pays for it. We will always insist that the seller provides this at their own cost.

It is not unusual for there to be arrears of ground rent and/or service charge on repossessed property and sometimes the buyer is expected to discharge these. On regular sales, it is quite common for retentions to be held by the buyer’s conveyancer towards any service charge balancing payments that may be demanded after the end of the financial year. It is rare for lenders to agree to these retentions, leaving the buyer liable for any balancing payments that may be demanded at a later date.  We will endeavour to obtain as much information as possible for you about these possible additional costs before exchange of contracts, allowing you the opportunity to renegotiate the price to take these into account.

Contact a Specialist in Repossessed Properties

Farleys’ residential property team can ensure you complete the purchase of your dream home or investment property efficiently. Call 0333 331 5680 or contact us by email.

Don't just take our word for it...

“Donna [Jackson] provided an excellent service. Friendly, easy to work with, competent, quick to respond. Couldn’t have asked for better – keep up the good work! Thank you very much! Very impressed. Will recommend and use again!”

Mr B & Miss J – Property Client

2018-08-06T13:01:22+00:00

Mr B & Miss J – Property Client

“Donna [Jackson] provided an excellent service. Friendly, easy to work with, competent, quick to respond. Couldn’t have asked for better – keep up the good work! Thank you very much! Very impressed. Will recommend and use again!”
“Andrea [Edwards] was extremely helpful and supportive, we couldn’t have asked for more. 5 star service!! Thank You.”

Mr & Mrs B - Residential Conveyancing Clients

2018-11-14T10:40:46+00:00

Mr & Mrs B - Residential Conveyancing Clients

“Andrea [Edwards] was extremely helpful and supportive, we couldn’t have asked for more. 5 star service!! Thank You.”
“We received a fantastic service from Andrea [Edwards] through a very tricky house move. We were very impressed with all the service provided.”

Mr & Mrs C – Domestic Conveyancing Clients

2018-09-24T12:57:20+00:00

Mr & Mrs C – Domestic Conveyancing Clients

“We received a fantastic service from Andrea [Edwards] through a very tricky house move. We were very impressed with all the service provided.”
“My best interests were always at the forefront of everything”

Ms B – Domestic Conveyancing Client

2018-09-24T12:51:12+00:00

Ms B – Domestic Conveyancing Client

“My best interests were always at the forefront of everything”
“This was a difficult house sale that collapsed on three occasions.  Whilst stressful I was always confident Farleys were 100% behind me.  Expert advice and client care.”

Mr T - Property Client

2019-05-16T11:24:30+00:00

Mr T - Property Client

“This was a difficult house sale that collapsed on three occasions.  Whilst stressful I was always confident Farleys were 100% behind me.  Expert advice and client care.”
“Dealing with Andrea [Edwards] was very re-assuring as she is professional, efficient and very capable. Above all she explains things in a very factual yet easy to understand way.”

- Mr & Mrs Q – Property Purchase

2019-05-16T11:41:02+00:00

- Mr & Mrs Q – Property Purchase

“Dealing with Andrea [Edwards] was very re-assuring as she is professional, efficient and very capable. Above all she explains things in a very factual yet easy to understand way.”
“The prompt reply to emails. The efficient ‘holiday handover’ of the case. The friendly & efficient service. It appeared that Donna (and Andrea) went the ‘extra mile’ to help push the sale through.”
2018-04-19T10:51:23+00:00
“The prompt reply to emails. The efficient ‘holiday handover’ of the case. The friendly & efficient service. It appeared that Donna (and Andrea) went the ‘extra mile’ to help push the sale through.”
“Donna [Jackson] was absolutely fantastic throughout the whole process, we cannot thank her enough. She was very polite and dealt with any requests we had promptly and kept us informed throughout. Very professional friendly service!”
2018-04-19T10:50:11+00:00
“Donna [Jackson] was absolutely fantastic throughout the whole process, we cannot thank her enough. She was very polite and dealt with any requests we had promptly and kept us informed throughout. Very professional friendly service!”
“Everything went smoothly and no hassle = no stress!”

Mr H - Residential Property Client

2019-05-16T11:23:01+00:00

Mr H - Residential Property Client

“Everything went smoothly and no hassle = no stress!”
“Very friendly, proactive and punctual service. Removed a lot of potential stress from house buying. The best service I have had using a solicitor thus far. Very impressed and recommend with high regard.”
2018-04-19T10:49:15+00:00
“Very friendly, proactive and punctual service. Removed a lot of potential stress from house buying. The best service I have had using a solicitor thus far. Very impressed and recommend with high regard.”
“Andrea Edwards provided an excellent service, professional throughout. We were advised by friends to use Farleys, we will 100% recommend Farleys to friends and relatives in the future. Andrea is a credit to your company/reputation.”
2018-04-19T10:53:15+00:00
“Andrea Edwards provided an excellent service, professional throughout. We were advised by friends to use Farleys, we will 100% recommend Farleys to friends and relatives in the future. Andrea is a credit to your company/reputation.”
"Donna’s professionalism gave me confidence in the procedure. Excellent. Thank you.”
2018-06-19T11:27:31+00:00
"Donna’s professionalism gave me confidence in the procedure. Excellent. Thank you.”

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