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Normski

Buying A Repossessed House

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My wife and I had a second viewing on a repossessed house today.

It's a bit of a wreck, needs partial re-roofing, kitchen, bathroom etc. But it's dry inside, no signs of movement, lots of potential, as Beeney would say.

It's an end terrace in the Cotswold village where my wife grew up, and her mum still lives there. 3 double bedrooms, 2 reception rooms, conservatory.

We've sorted a 5 year fixed mortgage at 3.89% with a LTV of 60%. we've been renting for 18 months since selling our first house.

This is the first suitable place that's come up, and the missus is a total Rightmove freak.

I've got no experience of buying a 'repo'. I understand the process as regards notices in the paper etc but what are the pitfalls/tricks I need to know?

I know what some on here will say about waiting for probable/possible price drops and I understand. This forum is where I spend alot of free time and I achingly want houses to be known as homes again, not investments. There's alot of sense talked here about the theory of why prices will drop. They should, by 30%. They won't though, will they. 10% next year if we're lucky.

Whatever happens, I feel the need to pacify my wife. She's being brave but she sort of needs a house she can call her own. Not logical, but hey-ho.

As regards dealing with the EA (who is dealing with a legal firm who is dealing with the bank) what to do? Both EA's we've seen so far seem very guarded and cagey about any sort of questions I've asked. These guys aren't the sharpest tools in the box, but their behaviour doesn't seem like they want a quick sale. Might just be me over-analysing.

Any tips?

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My wife and I had a second viewing on a repossessed house today.

It's a bit of a wreck, needs partial re-roofing, kitchen, bathroom etc. But it's dry inside, no signs of movement, lots of potential, as Beeney would say.

It's an end terrace in the Cotswold village where my wife grew up, and her mum still lives there. 3 double bedrooms, 2 reception rooms, conservatory.

We've sorted a 5 year fixed mortgage at 3.89% with a LTV of 60%. we've been renting for 18 months since selling our first house.

This is the first suitable place that's come up, and the missus is a total Rightmove freak.

I've got no experience of buying a 'repo'. I understand the process as regards notices in the paper etc but what are the pitfalls/tricks I need to know?

I know what some on here will say about waiting for probable/possible price drops and I understand. This forum is where I spend alot of free time and I achingly want houses to be known as homes again, not investments. There's alot of sense talked here about the theory of why prices will drop. They should, by 30%. They won't though, will they. 10% next year if we're lucky.

Whatever happens, I feel the need to pacify my wife. She's being brave but she sort of needs a house she can call her own. Not logical, but hey-ho.

As regards dealing with the EA (who is dealing with a legal firm who is dealing with the bank) what to do? Both EA's we've seen so far seem very guarded and cagey about any sort of questions I've asked. These guys aren't the sharpest tools in the box, but their behaviour doesn't seem like they want a quick sale. Might just be me over-analysing.

Any tips?

Not really.

Where I am looking there is one block of quite nice apartments that has suffered from a spate of re-possessions as BTL failures.

They were originally purchased at the peak of the market for 220-240K and the EAs can't sell them at 160-180K, when all other similar properties in that price range sell immediately.

And the reason why they failed as a BTLs is the same reason why they wont sell, a cripplingly high Management charge.

But the Banks aren't budging, 160K is the lowest that they will go and the places are left on the market until someone buys. One went to auction three times until someone bid up to the reserve, they haven't tried that again!

So in summary. If the property is intrinsically nice you can expect a few people to bid on it at the asking price.

And if it isn't, it will sit there for months before the banks will consider lower offers.

tim

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My wife and I had a second viewing on a repossessed house today.

It's a bit of a wreck, needs partial re-roofing, kitchen, bathroom etc. But it's dry inside, no signs of movement, lots of potential, as Beeney would say.

It's an end terrace in the Cotswold village where my wife grew up, and her mum still lives there. 3 double bedrooms, 2 reception rooms, conservatory.

We've sorted a 5 year fixed mortgage at 3.89% with a LTV of 60%. we've been renting for 18 months since selling our first house.

This is the first suitable place that's come up, and the missus is a total Rightmove freak.

I've got no experience of buying a 'repo'. I understand the process as regards notices in the paper etc but what are the pitfalls/tricks I need to know?

I know what some on here will say about waiting for probable/possible price drops and I understand. This forum is where I spend alot of free time and I achingly want houses to be known as homes again, not investments. There's alot of sense talked here about the theory of why prices will drop. They should, by 30%. They won't though, will they. 10% next year if we're lucky.

Whatever happens, I feel the need to pacify my wife. She's being brave but she sort of needs a house she can call her own. Not logical, but hey-ho.

As regards dealing with the EA (who is dealing with a legal firm who is dealing with the bank) what to do? Both EA's we've seen so far seem very guarded and cagey about any sort of questions I've asked. These guys aren't the sharpest tools in the box, but their behaviour doesn't seem like they want a quick sale. Might just be me over-analysing.

Any tips?

Sorry cant help with the technical aspects, but if its a home you're after it sounds like you've found it, if you can afford the repayments (and repairs) good luck if you go ahead and the same if you dont.

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Agents have their hands tied in the way they market repossessions. Properties are usually marketed on a multi-agency basis, which will keep the agent on his toes, but all offers MUST be publicly disclosed, usually in the local newspaper and the property usually has to remain on the market until exchange of contracts with an agent obliged to report any other approaches or offers from other buyers to the management company.

Depending however on the offer you make and the closeness of your transaction to exchange, an agent will usually do what he can to protect your sale and may not necessarily push the property you are buying in the fullest to other buyers.

The things to remember are that as with any sale, you can loose the deal at any time up to day of exchange (but this is more likely with reposessions as the banks only want to recoup their money) and there may be further unseen problems with the house, e.g. missing keys, trouble reinstating services, etc. If however you can secure the property at a good price, reposessions can make for very worthwhile purchase.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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