Buying Repossessed Property: Top Ten Dos and Don’ts

About Repossessed Property

Buying repossessed property might sound like a great idea. Either someone who can’t afford to pay their mortgage anymore needs to sell up fast – and typically at a knock down price – or a lender who has already repossessed the property and is now ‘desperate’ to sell the property on and recoup some of the losses already made.

However, buying repossessed property isn’t always easy. A great bargain isn’t always guaranteed. You have to try and buy the property at the right time and in the right way, otherwise you could end up overpaying or buying one in a complete mess that will take months to put right.

Follow Kate’s Top Tips to ensure you buy the right repossessed property at the right price! 

1.  Don’t assume a repossessed property is being sold at a discount price.

2.  Do take care if buying off someone directly – be sensitive to THEIR situation and needs.

3.  Don’t buy a repossessed property without a full structural survey.

4.  Do ensure you check the property hasn’t been damaged in any way prior to exchanging.

5.  Don’t ‘bully’ or ‘harass’ the seller into selling to you, they will be under too much stress already.

6.  Do get a gas and electrical safety certificate carried out on the property if you plan to rent afterwards.

7.  Don’t offer to buy a repossession and rent it back to the previous owner UNLESS you are registered with the Financial Services Authority it is ILLEGAL.

8.  Do check any third party offering ‘lists of repossessed properties' before paying any money. Ideally only sign up to ones that give FREE two weeks or a month’s free subscription. Try the EI Group.

9.  Don’t use a normal solicitor to buy a repossession, make sure you use a legal company that specialises in repossessed properties. The legals can be more complex and you need to make sure the title is correctly transferred to you and all the debts owed by the previous owners are NOT passed onto you.

10.  Do make sure you make an offer to the seller that is ‘win, win’ ie gives them an incentive to look after the property for you, such as a bonus payment if they leave it in an excellent condition.

For independent, professional and unbiased advice you can trust visit or telephone 0845 838 1763 and speak to the Designs on Property experts.

NALS Conference Chair 2016

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