Items Tagged With repo property

Many housing associations are buying repossessed properties for these very reasons and then renting them out after the necessary works have been done. They have the money in hand to carry out the renovations and are very unlikely to default on the loans. They are therefore considered 'safe' pairs of hands by lenders.

This benefits everyone because the more repossessed properties are taken out of circulation, the more other house prices can rise. The more values rise, the more companies can grow as businessmen can once again secure their loans to expand. The depth of the last recession in the UK was as much to do with credit squeeze (individuals and businesses not being able to borrow) as it was with temporarily high interest rates and a drop in overseas business.

If you're looking for the best possible deal, go to an auction of repossessed properties. You may well end up paying 50% or less of the open 'market' value.

The problem is that you'll almost certainly be buying a property that has been extensively "gutted" by the previous owners, or other unsavoury occupants, since the repossession, and you may not even be able to get a mortgage to buy the place!

Sounds daft I know, but a recent mortgage case of my own experience brings home the point. The applicant was recently divorced and wanted to buy a home of his own. His previous wife had possession of their old home under a "clean break" settlement and no children were involved. He had been with the same employer for most of his working life and was in a very stable job.

Action Points

• Always buy as big a house as you can afford and pay as little as possible for it!
  
  
• Don't over-capitalise the property by adding on extensions, conversions etc, unless you intend to live there for a long time
  
  
• Don't buy a repossessed house at auction until you are absolutely certain of getting the finance for it
  
  
• 4 bedroom houses are always a good buy
  
  
• Look out for properties that are with more than one agent
  
  
• Choose the location with as much care as you choose the house
  
  
• Beware of redecoration carried out immediately before a property goes on sale
  
  
• ALWAYS get a structural and ground survey carried out
  
  
• KNOW YOUR VENDORS - this is the most important "buy" you'll ever make
  
  
• DON'T finalise matters until the lender has agreed that the valuation is fair