Who owns a repossessed property?

[Fucktheapp]

If a property has been repossessed (actual repossession took place a couple of weeks ago but no “eviction” required as occupiers had already moved on, but repossession notices on property), who now owns the property?

Is it the bank who has repossessed or the person who had the mortgage ( but has defaulted leading to the repossession)? Common sense tells me the owner of the property is the bank (given they have taken over possession) but I’m being told otherwise.

If it is otherwise and the individual who had the mortgage is still the owner, can you explain why this is for me?

Thank you.

When a property's repossessed, the mortgage lender then legally owns it.

The lender takes possession. They have the right to sell as mortgagee in possession but they are not the owner. The owner no longer has the right to possession. The lender may take possession, as they have in your case.

At least that's my understanding.

The bank owns the property.

We bought a house where the owner had defaulted on the mortgage and it was repossessed by the bank who they had the mortgage with.

Yes it’s the bank

I did own a repossessed property. No different to owning any other property.

The mortgage lender (bank/building society) will own the repossessed property. They will then sell it to recoup their money which they lent to the previous owner in the form of a mortgage.

Common sense tells me the owner of the property is the bank (given they have taken over possession) but I’m being told otherwise.
Who is telling you otherwise and what are they saying? If it's the person who got evicted by the bank then maybe they just feel ashamed.

Are you asking who is responsible for council tax, water, electricity, insurance etc?

there may well be a legal owner (ie at what exact point does the legal title pass?)

but also a beneficial owner. the legal owner may well be holding it on trust for the bank for example, until some paperwork done.

I did do land law but i forget at what exact point the legal title transfers (but must be done in writing etc)

so googling it, the bank has the POWER to sell the property and transfer the title. but legal title still stays with the original person until sold.

Well technically the person who took the loan is still the owner but the bank can repossess and sell the property to recoup their loan. This is why you can't just "hand back the keys" and absolve yourself of all responsibilities. If the bank sells for less than the loan and costs, you will still owe them money.

and the bank still have the obligation to the owner to sell for as much as possible (within reason)

The owner of the property is the mortgage lender, whether that is a bank or building society, or some other financial institution.

When the bank lends the money, the house is security for the loan and when the loan is not repaid, the bank takes the house. They then sell it and use that money to clear the debt.

The mortgage lender owns the property once it has been repossessed.

I once bought a repossessed property, and the vendor was the building society that the mortgage had been held with. I had no contact or details for the ex-owners though I did receive their post for years afterwards.

In my simple mind, I think that until anyone's mortgage is paid off, the institution that has leant the person the money to buy the property 'owns' it. That way, they have an asset if the loan repayments (the mortgage) are defaulted.
Same with car finace, the lender effectively owns the car as a guarentee against default.
Obviously, if you get a loan from the bank for a holiday/etc, they can't claw that back, but will then look for other assets.
I appreciate that legally, this may not be the case in relation to mortgages/ownership, but it works for me!