Repossession Conveyancing Solicitors

Buying a repossessed property is a great opportunity for some buyers, but it comes with risks. Because the process is often carried out very quickly, and with minimal information provided to the buyer in some cases, it can be a risky proposition and it is vital to secure legal assistance to protect your rights and your finances.

The specialist solicitors at JMW offer legal advice and conveyancing services when you buy a repossessed property, and can work quickly to keep the process moving forward. Our friendly team understands the risks and will keep you informed at every stage so you can buy a repossessed property with confidence.

To find out everything you need to know about buying repossessed property conveyancing, call the specialist solicitors at JMW today on 0345 872 6666. Alternatively, complete our online enquiry form and let us know a suitable time to call you back.

How JMW Can Help

JMW's team of specialist conveyancing solicitors applies decades of experience to supporting clients in purchasing a repossessed house or other property. Thanks to our successes, JMW has been recognised by The Legal 500 as one of the UK's top law firms, and the reputation of our property law team is a key reason why we are so highly regarded.

When you contact us for help purchasing a repossessed property, we will get to work quickly. Repossessed properties are often sought after and the seller will want to complete the sale as soon as possible. To give you the best chance of securing the property, we will work efficiently to minimise any delays.

We will hold an initial consultation to determine what exactly you need assistance with - whether you have already started the process and need advice on a specific aspect of the process, or you have no idea where to start, our team will be able to help you. We will explain the process and help you to form a plan so you know exactly what next steps you need to take.

Before you purchase the property, we will help you to understand what your legal responsibilities will be after the deal is completed, and what you can expect when you acquire the property. We can facilitate communications with a professional surveyor, who will make sure that the property legally satisfies tax requirements and is liveable.

Meet Our Team

JMW’s team offers expert advice and support for individuals buying repossessed property, and has a strong track record of success in these transactions. Whether you are buying your first property, or adding to an investment portfolio, our specialist conveyancing solicitors will liaise with all parties and carry out the necessary conveyancing services quickly to keep your transaction moving forward.

Buying Repossessed Property from a Mortgage Lender

Purchasing repossessed property offers a unique opportunity for prospective homebuyers to get onto the first rung of the property ladder or unearth a bargain that they may otherwise have not been able to afford.

Legal advice is often necessary before embarking on a search of repossessed properties for you to try and buy. It is important that you raise any questions when doing so, as the lender will likely not have previously occupied the property, so they will not be able to answer many of the questions that are usually asked to the owner. Therefore, the onus will be on you and your solicitors to find out the details of matters such as planning permissions and NHBC certificates through the conveyancing process.

It is also important to carefully check through the contract provided by the lender with the help of an expert. Many lenders do not accept amendments made to some of the clauses, which are often unreasonable. You have to bear in mind that a lender would often rather withdraw from a sale than change a contract. Our expertise will offer you the best chance of reaching a compromise with the lender.

However, you must remember that lenders have an obligation to get the best price for the property. This means they won’t remove the house from the market once an offer has been accepted, in the hope of getting a better price from elsewhere.  

What Is the Difference When Buying Repossessed Property?

One of the main reasons buyers look for repossessed properties is because they are often more affordable - sometimes offered at up to 70 per cent of the price they would have otherwise been sold for. This is a considerable saving that makes repossessed property highly sought after, and the process of purchasing a repossessed property is much the same as that of a normal purchase.

However, buyers should be aware that repossessed properties come with some risks. Since properties that are repossessed are acquired from homeowners who could not finish their repayments to a mortgage lender, the properties can sometimes incur credit issues, which may be mixed up if a new owner moves in quickly after. In this case, you may expect a visit from the bailiffs and you will need to demonstrate that you are the new owner using official documentation such as the Transfer of Deeds. If you incur credit issues from buying a repossessed property, you should speak to a professional solicitor as soon as possible for advice.

Because these property transactions are carried out by the mortgage lenders who have repossessed the properties in question, they often do not have the same level of information as a standard seller. For example, a bank or building society usually cannot provide answers to practical questions about relationships with neighbours or highlight other concerns that the previous owner would know from having lived in the property.

Additionally, repossessed properties may have their appliances removed and can be disconnected from the utilities. This will require some maintenance to fix, and this can rack up costs. You should make sure you understand what a property that you are looking to buy is missing before doing so, and make sure that you will have the funds to carry out the necessary maintenance.

While there are risks involved in a repossession property transaction, the right approach can overcome these potential difficulties and deliver a significant saving. Working with experienced repossessed property conveyancing solicitors is also key when buying repossessed properties, as they will protect your interests throughout.

What Is the Process of Buying a Residential Property After Repossession?

The process of buying repossessed property often moves quickly, and it can help to know what to expect before you start. In general, the process will unfold as follows:

1. Find the property: The process starts when you find an auction property you like, or a repossession sale through estate agents or “public notice” listings. The lender/seller is usually trying to recover the mortgage debt after repossession.
2. Get finance ready first: Sellers often expect a quick exchange and completion, so have a mortgage agreement in principle or cash funds lined up.
3. Carry out due diligence: Instruct a solicitor to perform the relevant searches, check the title and any lease issues, identify any restrictions and ideally survey the property. Repossessed homes are commonly sold “as seen”, with limited information and no guarantees. As such, these property purchases can be more risky than other property transactions, but also represent an opportunity to secure the property at a better price.
4. Make an offer or bid at auction: At auction, exchange usually happens when the hammer falls. If you make an offer through an estate agent, the lender may keep marketing the property until exchange and accept a higher offer.
5. Exchange contracts: This is the key point at which the deal becomes legally binding. Until then, you can be "gazumped", which occurs when another party makes a higher offer at the last minute. Once you have exchanged contracts, the property is legally ready for completion.
6. Complete: Completion will usually take place within 28 days for repossession properties bought at auction. The buyer's solicitor pays the balance of the mortgage, you get the keys, and the lender uses proceeds toward the former owner’s mortgage debt.

The entire process is usually relatively fast when a bank or building society is selling property to recoup debts. As such, it is important to instruct a repossession property lawyer at your earliest opportunity, so that the conveyancing work can be taken care of in a timely manner.

Q

How long does it take to buy repossessed houses?

A

From the date of accepting the deal to purchase the house, you will have 31 days to pay for the property. While there is a lot of legal ground to cover before you can actually move into the property, you could hold ownership over it within a month. This makes purchasing a repossessed property a considerably faster process than going the usual route of taking out a mortgage loan.

Q

Is it easy to buy repossessed property?

A

Conveyancing is a necessary and complex legal process that comes with many pitfalls that could prove costly and time-consuming if attempted without the help of an experienced conveyancing solicitor. However, if you have the funds, it may be easier to purchase a repossessed property than to apply for and pay off a mortgage for a different property.

Q

How much does a conveyancing solicitor cost?

A

For more information about our service costs, call us today and we will discuss your situation and be able to provide you with a quote.

Q

How much does a conveyancing solicitor cost?

A

For more information about our service costs, call us today and we will discuss your situation and be able to provide you with a quote.

Q

What is 'caveat emptor'?

A

A repossessed property will be sold as seen, often with no guarantees about condition and limited information from the seller. This is known as 'caveat emptor', which is sometimes translated as "buyer beware". Given that the seller will often not provide much information about what to expect from the property, there is a risk of disappointment unless your expectations are realistic.

Common things that you may find upon buying a repossessed property include:

• Neglect or a lack of maintenance, especially if the owner struggled financially before repossession.
• Damage or missing items, such as removed appliances, damaged fixtures, stripped fittings, or vandalism.
• Utilities that have been disconnected or are unsafe, including heating, electrics, plumbing, or appliances.
• Unknown defects, because the lender has not lived there and may not be able to answer detailed property questions.
• Empty-property issues, such as damp, leaks, pests, frozen pipes, security problems, or overgrown gardens.
• Rubbish or the original owner's possessions left behind.

You should budget for repairs, get a survey where possible, and have your solicitor check for anything unusual before exchange. JMW specialises in working quickly and identifying such information early, so you can make decisions with a full understanding of the risks.