What are the pitfalls in purchasing a re-possessed house?
March 4th, 2015


First of all the vendors (banks and financial institutions) of these properties which are generally referred to as corporate sales are not keen to reveal their re-possessed status.  However it can be fairly obvious when you view the houses as there will be various notices throughout warning that the water supply etc has been turned off.  There is usually some sort of tape across the water taps and around the boiler.  However this should not put you off as many a corporate sale has turned out to be a great buy for both owner occupiers and investors.

The difference to a normal sale is that once an offer has been accepted from you, other potential buyers will still be encouraged to view the property and make offers right up until the time when you have signed the contract.  In this time you may have forked out a few hundred pounds for a survey and your solicitor may have racked up a few expenses as well.  You will not be able to reduce your offer should there be more work required than you had anticipated after survey and if there are any documents missing including building control approvals, the vendor will not provide these for you, which could result in your mortgage being refused. Likewise if your lender is looking for a damp proof guarantee and one doesn’t exist, this will cause similar problems.  It doesn’t mean that all corporate sales are only suitable for cash buyers but you do need to be aware of the pitfalls.  If you would like an advice on purchasing a corporate sale, we would be delighted to help.