Repossessed property, it’s almost like a dirty word when your new client tells you that they intend to purchase one. The transactions are often fraught with difficulties and time constraints and more time is spent chasing outstanding points than in any other transaction, but why do our clients want to buy them?
Dream home without the price tag
Purchasing a repossessed property can mean that our clients are able to get their dream home at a much lower price.
Whilst a lender has to act in the best interests of the defaulting borrower they are often in a hurry to sell the property and will therefore take an offer, sometimes much lower than the asking price. Their aim is to reduce their liability for the property as quickly as they can.
Unfortunately there are downsides for the solicitors acting on the purchase of a repossessed property, these can be confounded by the solicitor acting on the sale of the repossessed property. Many can be entirely unhelpful, especially when asked to provide things such as management company information, on Leasehold properties, and planning permissions etc.
What can the lender’s solicitors do to ensure a trouble free transaction?
1. Where the property is leasehold, have the management company pack/information to hand — this will speed up the transaction and, as part of the CML, is a must for buyer’s solicitors.
2. More and more local authorities have planning permissions available online — having copies of any necessary documentation will also speed the process up.
3. Think about the CML handbook — the chances are that the buyer will have a mortgage and the lender’s solicitors will already be aware of the obligations of the buyer’s solicitors.
What tips would you add to the list?
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