Anyone involved in company Liquidation..? Advice req.
Anyone involved in company Liquidation..? Advice req.
Author
Discussion

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
Just need some advice please

I'm looking at buying a house, it is brand new and been on sale for a few months.

It is on a small development of six houses and only one has been reserved due to the fact they are well over priced.

On the 30th of jan the builder went into liquidation.

Can I kick'um in the nuts now on the price as it is the liquidators job to get as much money in as quick as possible, or am I wrong.

chim_knee

12,689 posts

288 months

Friday 24th February 2006
quotequote all
I know next to nothing about the given scenario but I'd say it can't hurt, can it?

DieselJohn

2,114 posts

287 months

Friday 24th February 2006
quotequote all
Only problem I can see is if something goes badly wrong with the house you will have no comeback. Get a good survey I suppose. Otherwise sounds like a good oppurtunity, liquidators want cash quick usually I think.

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
DieselJohn said:
Only problem I can see is if something goes badly wrong with the house you will have no comeback. Get a good survey I suppose. Otherwise sounds like a good oppurtunity, liquidators want cash quick usually I think.


I have been told that the NHBC warranty is still valid.

mrs trackside

9,299 posts

264 months

Friday 24th February 2006
quotequote all
Donut said:
DieselJohn said:
Only problem I can see is if something goes badly wrong with the house you will have no comeback. Get a good survey I suppose. Otherwise sounds like a good oppurtunity, liquidators want cash quick usually I think.


I have been told that the NHBC warranty is still valid.


It's only valid on STRUCTURAL things - i.e. if a wall falls down, you'd be covered. In other words, it's a guarantee to rebuild your house if it falls down.

If you move in and your pipes are not connected properly and they flood your house, you would have no recourse on the NHBC. That's the type of thing the builder would take of within two years of you moving in.

zippee

14,153 posts

265 months

Friday 24th February 2006
quotequote all
But I would imagine you'd still have minimum 12 mths warranty on boiler, cooker etc as part of their original manufacturer warranty. The other stuff I guess you'd just have to take your chances with like you would if buying a used hime.

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
mrs trackside said:
Donut said:
DieselJohn said:
Only problem I can see is if something goes badly wrong with the house you will have no comeback. Get a good survey I suppose. Otherwise sounds like a good oppurtunity, liquidators want cash quick usually I think.


I have been told that the NHBC warranty is still valid.


It's only valid on STRUCTURAL things - i.e. if a wall falls down, you'd be covered. In other words, it's a guarantee to rebuild your house if it falls down.

If you move in and your pipes are not connected properly and they flood your house, you would have no recourse on the NHBC. That's the type of thing the builder would take of within two years of you moving in.


Oh..

My offer just got a bit lower..

The house does seem to be very well built though.

draft

286 posts

274 months

Friday 24th February 2006
quotequote all
Donut said:
Just need some advice please

I'm looking at buying a house, it is brand new and been on sale for a few months.

It is on a small development of six houses and only one has been reserved due to the fact they are well over priced.

On the 30th of jan the builder went into liquidation.

Can I kick'um in the nuts now on the price as it is the liquidators job to get as much money in as quick as possible, or am I wrong.



In this type of situation the Liquidator is obliged to sell the property at a going rate to recover as much as possible to pay dividends to creditors and the like. If the houses were over priced initially you might save a bit.. but it is unlikely they will drop below the standard priace for that type of house in that area.

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
draft said:
Donut said:
Just need some advice please

I'm looking at buying a house, it is brand new and been on sale for a few months.

It is on a small development of six houses and only one has been reserved due to the fact they are well over priced.

On the 30th of jan the builder went into liquidation.

Can I kick'um in the nuts now on the price as it is the liquidators job to get as much money in as quick as possible, or am I wrong.



In this type of situation the Liquidator is obliged to sell the property at a going rate to recover as much as possible to pay dividends to creditors and the like. If the houses were over priced initially you might save a bit.. but it is unlikely they will drop below the standard priace for that type of house in that area.



But it has been on sale for months, do they have a time limit to recover the money etc or will they sit on it until it sells.

draft

286 posts

274 months

Friday 24th February 2006
quotequote all
It may have been on the market for a few months already but as you said only one was reserved due to over inflated prices and the IP has only just been appointed. Therefore the liquidator will have the properties revalued and no doubt they will see a reduction in price. While the IP does have a time scale it is likely that they will not be in a rush.. If I were you I would look at house prices in the area and make an offer direct ot the Insolvency Practitioner along those lines.

The other option is that they go up for action in a similar way to repossessed houses. But again that is not likely to happen immediately, but more likely if after a few weeks / month the properties are not already sold.

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
draft said:
It may have been on the market for a few months already but as you said only one was reserved due to over inflated prices and the IP has only just been appointed. Therefore the liquidator will have the properties revalued and no doubt they will see a reduction in price. While the IP does have a time scale it is likely that they will not be in a rush.. If I were you I would look at house prices in the area and make an offer direct ot the Insolvency Practitioner along those lines.

The other option is that they go up for action in a similar way to repossessed houses. But again that is not likely to happen immediately, but more likely if after a few weeks / month the properties are not already sold.


There is an estate agent on site but I do have the details of the IP from companies house.

Are you saying I can approach the IP rather than go though the agents..?

We have just been guzumped(sp?) and feel this house is worth less than the one we have just missed out on, that would mean a reduction circa £40,000 about 17% as it is of similar size but in a less desirable location.

draft

286 posts

274 months

Friday 24th February 2006
quotequote all
There is an estate agent on site but I do have the details of the IP from companies house.

Are you saying I can approach the IP rather than go though the agents..?

We have just been guzumped(sp?) and feel this house is worth less than the one we have just missed out on, that would mean a reduction circa £40,000 about 17% as it is of similar size but in a less desirable location.

It depends - You can approach the IP direct, however if the IP still feels that these properties can be sold at the asking price he will just refer you to the agent (who may be acting on their behalf).

It might also depend on who has forced the Liquidation are you sure its a liqudation and not a CVA?

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
draft said:
There is an estate agent on site but I do have the details of the IP from companies house.

Are you saying I can approach the IP rather than go though the agents..?

We have just been guzumped(sp?) and feel this house is worth less than the one we have just missed out on, that would mean a reduction circa £40,000 about 17% as it is of similar size but in a less desirable location.

It depends - You can approach the IP direct, however if the IP still feels that these properties can be sold at the asking price he will just refer you to the agent (who may be acting on their behalf).

It might also depend on who has forced the Liquidation are you sure its a liqudation and not a CVA?




Compulsary Liquidation, Order to wind up: 30/01/06

blindswelledrat

25,257 posts

263 months

Friday 24th February 2006
quotequote all
You have to bear in mind that liquidations routinely take a couple of years.
The liquidator's only real obligation is to get as much money as possible and not within a given timescale. The upshot of this is that in the case of property 'market price' will be governed by estate agents valuations and i would be very suprised if your opinions would make much difference.
That said, it can't hurt to try!


>> Edited by blindswelledrat on Friday 24th February 15:56

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
I'm no estate agent, but I do know the area around here and the house is deffo over-priced, hence why it and the other 4 have not sold even though they have been up for sale since the foundations where being dug!

I'm going to do battle on Sunday so I shall see....

rich1231

17,340 posts

291 months

Friday 24th February 2006
quotequote all
Donut,

would you like to share this information with me?

email me the site details pretty please.

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
rich1231 said:
Donut,

would you like to share this information with me?

email me the site details pretty please.



Why are you local..?

we only like local people

Tony427

2,873 posts

264 months

Friday 24th February 2006
quotequote all
Having just been spectating in two recent insolvencies I would give this advice.

Go direct to the Administrators/ Liquidators and put a very low offer to them to buy the house in cash within a short timeframe. If you don't you can bet your bottom dollar some mate of the administrator or selling agent will move in and buy the lot at a silly discount.

Whats a silly discount? Well in the industrial market place you are looking at a discount of 96% on the normal selling price. Thats for finished goods sitting in a customers factory. The goods were then sold onto the customer in whose factory they were sitting, for full price...........an instant margin of 96% paid for by unsecured creditors...

The liquidators are only interested in getting cash back quickly and getting their fees paid. They do not give two hoots about the unsecured creditors, any cash they get will be going back to the bank in any event as the bank will be the biggest secured creditor.

Getting the banks money back asap will ensure that they are called out by the bank on the next liquidation job. Once the bank's exposure is covered the liquidators just want to wrap up without spending any more money getting in cash for the unsecured creditors.

If you can, find out which bank is in the picture and contact the builders account manager direct. Put your offer to him and the liquidators in writing with witnesses/ proof of delivery. I had my accountant put an offer in writing to buy one company out of administration and the Official Receivers/ Administrators report claimed no offers had been received to buy the business, apart from the one from the previous owners of the business, who called the administrators in in the first place.......backscratching all round!!

Best of luck, go in low, go in fast and make yourself known to the decision makers not the monkeys.

Cheers,

Tony

PS Move quickly, speed is of the essence, everyone will be working to timetables but its amazing what shortcuts liquidators will take to get cash.

PPS Rich 1231 seems to know a good opportunity when he sees one....

>> Edited by Tony427 on Friday 24th February 18:00

Donut

Original Poster:

4,521 posts

282 months

Friday 24th February 2006
quotequote all
Tony427 said:
Having just been spectating in two recent insolvencies I would give this advice.

Go direct to the Administrators/ Liquidators and put a very low offer to them to buy the house in cash within a short timeframe. If you don't you can bet your bottom dollar some mate of the administrator or selling agent will move in and buy the lot at a silly discount.

Whats a silly discount? Well in the industrial market place you are looking at a discount of 96% on the normal selling price. Thats for finished goods sitting in a customers factory. The goods were then sold onto the customer in whose factory they were sitting, for full price...........an instant margin of 96% paid for by unsecured creditors...

The liquidators are only interested in getting cash back quickly and getting their fees paid. They do not give two hoots about the unsecured creditors, any cash they get will be going back to the bank in any event as the bank will be the biggest secured creditor.

Getting the banks money back asap will ensure that they are called out by the bank on the next liquidation job. Once the bank's exposure is covered the liquidators just want to wrap up without spending any more money getting in cash for the unsecured creditors.

If you can, find out which bank is in the picture and contact the builders account manager direct. Put your offer to him and the liquidators in writing with witnesses/ proof of delivery. I had my accountant put an offer in writing to buy one company out of administration and the Official Receivers/ Administrators report claimed no offers had been received to buy the business, apart from the one from the previous owners of the business, who called the administrators in in the first place.......backscratching all round!!

Best of luck, go in low, go in fast and make yourself known to the decision makers not the monkeys.

Cheers,

Tony

Move quickly, speed is of the essence, everyone will be working to timetables but its amazing what shortcuts liquidators will take to get cash.





Cheers Tony...

Will need a mortgage though.

edited to ask... Is your Cobra silver..??

>> Edited by Donut on Friday 24th February 18:02

Tony427

2,873 posts

264 months

Friday 24th February 2006
quotequote all
Donut said:
Tony427 said:
Having just been spectating in two recent insolvencies I would give this advice.

Go direct to the Administrators/ Liquidators and put a very low offer to them to buy the house in cash within a short timeframe. If you don't you can bet your bottom dollar some mate of the administrator or selling agent will move in and buy the lot at a silly discount.

Whats a silly discount? Well in the industrial market place you are looking at a discount of 96% on the normal selling price. Thats for finished goods sitting in a customers factory. The goods were then sold onto the customer in whose factory they were sitting, for full price...........an instant margin of 96% paid for by unsecured creditors...

The liquidators are only interested in getting cash back quickly and getting their fees paid. They do not give two hoots about the unsecured creditors, any cash they get will be going back to the bank in any event as the bank will be the biggest secured creditor.

Getting the banks money back asap will ensure that they are called out by the bank on the next liquidation job. Once the bank's exposure is covered the liquidators just want to wrap up without spending any more money getting in cash for the unsecured creditors.

If you can, find out which bank is in the picture and contact the builders account manager direct. Put your offer to him and the liquidators in writing with witnesses/ proof of delivery. I had my accountant put an offer in writing to buy one company out of administration and the Official Receivers/ Administrators report claimed no offers had been received to buy the business, apart from the one from the previous owners of the business, who called the administrators in in the first place.......backscratching all round!!

Best of luck, go in low, go in fast and make yourself known to the decision makers not the monkeys.

Cheers,

Tony

Move quickly, speed is of the essence, everyone will be working to timetables but its amazing what shortcuts liquidators will take to get cash.





Cheers Tony...

Will need a mortgage though.

edited to ask... Is your Cobra silver..??

>> Edited by Donut on Friday 24th February 18:02



Nope, I dont have a silver one. A mate and I have three blue ones, one finished, one part completed and the third in bits ready to be built.

Get a mortage offer asap, even a self certification offer if necessary.

Cheers,

Tony