Repossessed Property Solicitors and Conveyancers
Purchasing Repossessed Property
When the owner of a property does not make the mortgage repayments, the mortgage lender can repossess the property. The lender will try to get a quick sale of the property to recoup their investment as fast as possible.
Buying repossessed property can have many benefits to the buyer. It often involves a faster process than purchasing a home with occupants. The asking price of these homes can also be lower than the average market value. Providing a good deal for first time buyers, looking to get onto the property ladder for the first time.
Purchasing a repossessed home can be complicated. Having a conveyancer or solicitor who understands the process of repossessed conveyancing can make all the difference.
The residential property and conveyancing team at Holden Smith can guide you through your purchase of a repossessed property. Contact our team to discuss purchasing a repossessed home and receive a quote. You can contact the team by calling one of our offices or by completing our online enquiry form.
How to buy a repossessed house
The timelines of buying a repossessed home are significantly shorter and are similar to purchasing a property through an auction. Like a regular auction purchase, you must complete your property purchase by a specified deadline.
The purchase deadline varies, it is based on a number of factors. This can include the mortgage lender who owns the property, whether you are a cash buyer or buying through a mortgage. However, the timelines are typically between 21 and 28 days. Failure to complete within this timeline can result in the purchase falling through.
Here are some of the key steps for buying a repossessed property:
1. Identify the property you wish to purchase.
Estate agents and auction houses can advertise repossessed properties. Look around at the available properties, arrange to view them, and research the area to get a good feel for where you are buying.
2. Speak to your solicitor.
Before placing a bid on the property or before the auction begins, you should consult your solicitor or conveyancer. They will provide you with a quote for their work and will review any pre-auction/seller packs. Once reviewed they will advise you of any issues that could affect the value and condition of the property. Your solicitor will prepare documents for your purchase, making sure everything is ready ahead of the deadline.
3. Make an offer or place a bid.
Make your offer to the estate agent or place a bid if it is an auction. When your offer is accepted, you will need to send all the relevant information, including the purchase price, to your solicitor or conveyancer. They will carry out the relevant legal work to complete within the deadline set.
4. Complete.
Once the legal work is complete, your conveyancing specialist will exchange contracts with the property owners. You will complete the transfer of the property to your name, and you will become the legal owner of the property.
What out clients say
Why choose Holden Smith Law
Our residential property team has been assisting clients in buying property since 2019. We have a wide range of experience with auction sales and collaborating with mortgage lenders to purchase repossessed properties.
We understand the complexities and potential complications that can arise when buying a repossessed property, and we are prepared to guide you through the process. Ensuring a smooth buying experience.
Our teams are based across the North of England in areas such as Leeds, Huddersfield, and Manchester, but can assist you with a purchase anywhere in England and Wales. As a valued client, you will gain exclusive access to our app, enabling you to receive instant updates on the progress of your purchase.
We are regulated by the Solicitors Regulation Authority (SRA). This enables us to deliver a consistently high standard of service and quality to all our clients. The Law Society accredits us for our quality conveyancing. We follow strict guidelines to ensure that we meet this requirement.
Frequently Asked Questions
If I have an offer accepted, will I have exclusivity to it?
When buying a repossessed property and have an accepted offer, the property can remain on the market. This allows other potential buyers to come in and make a higher offer. This is known as being “gazumped”; if this happens, you may need to increase your offer to proceed with the purchase.
Working with a solicitor or conveyancer who has experience in the buying process can help reduce the time it takes to buy a property and minimise the risk of being gazumped by other potential buyers.
Who sells the repossessed house?
When a house is repossessed, the mortgage lender, such as a bank or building society, will take ownership of the property. As they own the property, it is up to them to arrange for its sale as well.
Why do lenders sell repossessed properties at auction?
Mortgage lenders typically collaborate with estate agents or auction houses to advertise the property and attract potential buyers.
They will try to sell the property through an estate agent using the traditional route, as it can help them recover as much of their investment as possible. However, if a property does not get enough interest, then it may be sold through an auction house.
What does subject to contract mean?
When a property is subject to contract, this means that the property owner has accepted an offer on the property but has not legally sold it. This can provide an opportunity for buyers to come in with an increased offer to gazump the current transaction.
For a purchase to be gazumped, the property owner would normally have to receive a significantly increased bid for them to restart the conveyancing process. This can vary from lender to lender.