Buying a repossessed property... thoughts please...
Discussion
Just wondering if anyone out there has had a similar experience?
About 5 weeks ago I put an offer on a repossessed maisonette which was accepted. It's on a new development, 2 years old with 2 dbl beds and it's own front door and a garage. The kitchen has been ripped out, the front door has been kicked in (now secured by padlocks) and someone has taken a disk-cutter to one metal pillar of the garage... nice, so I'm assuming the previous occupant didn't go quietly!
I'm buying it for £88k and my plan is to fix the damage and rent it out. I looked at the land registry and the previous occupant bought it brand new on a shared ownership scheme... the property was £130k and he had a half share for which he paid £65k with a mortgage.
This is where the problem starts... the 7 day notice ended a couple of weeks ago, I've signed the contract and I am just sitting, with my cash, waiting to hand it over
BUT the Mortgage Company who repossessed the property are waiting for the Housing Association to "approve the valuation for the purposes of staircasing"... so basically they have to agree an amount to buy the remainder of the 100% of the lease so that they can then sell it to me.
I have bought repossessions before, always for cash, but only freehold houses and it's always been pretty quick and straight forward. I've never bought a flat or leasehold before.
So my question is:
Has anyone out there bought a repossessed shared ownership property and what were your experiences?
How long did it take to sort out?
Were there any other complications?
About 5 weeks ago I put an offer on a repossessed maisonette which was accepted. It's on a new development, 2 years old with 2 dbl beds and it's own front door and a garage. The kitchen has been ripped out, the front door has been kicked in (now secured by padlocks) and someone has taken a disk-cutter to one metal pillar of the garage... nice, so I'm assuming the previous occupant didn't go quietly!
I'm buying it for £88k and my plan is to fix the damage and rent it out. I looked at the land registry and the previous occupant bought it brand new on a shared ownership scheme... the property was £130k and he had a half share for which he paid £65k with a mortgage.
This is where the problem starts... the 7 day notice ended a couple of weeks ago, I've signed the contract and I am just sitting, with my cash, waiting to hand it over
BUT the Mortgage Company who repossessed the property are waiting for the Housing Association to "approve the valuation for the purposes of staircasing"... so basically they have to agree an amount to buy the remainder of the 100% of the lease so that they can then sell it to me.I have bought repossessions before, always for cash, but only freehold houses and it's always been pretty quick and straight forward. I've never bought a flat or leasehold before.
So my question is:
Has anyone out there bought a repossessed shared ownership property and what were your experiences?
How long did it take to sort out?
Were there any other complications?
I don't know that there's a lot he can do, he is pushing hard for a completion date from the repossessing Mortgage Company's solicitor, but I imagine the Housing Association aren't too worried about speeding things up for little old me if they're due to make a loss at all.
I don't really know how it works so I'm wondering if I'm correct in thinking that if 100% of the property was originally sold by the developer for £130k, and then 50% of that (£65k)was mortgaged on a shared ownership scheme and the Housing Association retained the other 50% (£65k) on which the occupant paid rent as well as his mortgage (he must have only been there for around a year), then I've agreed to pay £88k, by my (novice) thinking, someone, either the Housing Association or the Mortgage Company has got to write off around £42k... is that right?
That's why I'm wondering if anyone else has tried to purchase 100% of the lease of a repossessed shared ownership property and if they experienced a similar frustrating situation.
I don't really know how it works so I'm wondering if I'm correct in thinking that if 100% of the property was originally sold by the developer for £130k, and then 50% of that (£65k)was mortgaged on a shared ownership scheme and the Housing Association retained the other 50% (£65k) on which the occupant paid rent as well as his mortgage (he must have only been there for around a year), then I've agreed to pay £88k, by my (novice) thinking, someone, either the Housing Association or the Mortgage Company has got to write off around £42k... is that right?
That's why I'm wondering if anyone else has tried to purchase 100% of the lease of a repossessed shared ownership property and if they experienced a similar frustrating situation.
Edited by Coupe Girl on Saturday 24th July 19:03
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