Offering on a property owned by Equity Release Company

[CharlieBiggles]

I am interested in making an offer on a house but the title is owned by an Equity Release Company. The original owner is in a care home. The house has an old heating system with known evidence of white asbestos in the heating unit.

I have a buyer lined up for my property who is keen to complete as soon as possible. Could I be facing conveyancing delays dealing with an Equity Release Company? Any other matters to consider? (no mortgage required)

We bought off one. Generally easy, vacant possession, sold as seen (so asbestos will be your problem) no paperwork for any heating etc. Obviously had used a house clearance company to empty the place. Hadn't been cleaned though....

One hitch was some unpaid utility bills leading to new locks and a prepay meter being installed a few days before completion.

I was in fear of being gazumped too. It's just business to them after all. Condition of our offer was ask marketing had to cease, they accepted as long as completion was in one month.

Good luck!

Thank you Rollercoaster, just the sort of information I needed 👍🏻

Grateful thanks xx

We bought our house from an equity release company. The elderly resident had given away so much equity that she couldn't afford to pay for the care apartment place she was going in to. This wasn't highlighted until literally a couple of days before we were due to exchange. Despite the company owning the house, she couldn't afford to go anywhere else and it massively stalled the process.
Luckily she found a much cheaper place to go 6 weeks later and we ended up completing in the end.
Mega stressful and have vowed to never purchase from a buyer with any kind of equity release mortgage in place again!

Heck! That is sad, and good information to bear in mind.
In this case, the elderly woman is already in a care home and the house was put on the market last May 2018. It appears that the Equity Company were put on the Title Deeds in 2008. I bet she sold out for very little.

I’m going to push my luck with a bit of a low ball offer seeing it’s been on the market 9 months.

The equity release company may consider your lower offer but they also have to act in the clients best interest, they can't be seen accepting a lower offer if the house is worth more so just bear that in mind with your offer. The house will have been valued by an independent surveyor based on its condition and location etc so any lower offer will be reviewed by other parties other than the lender before a decision is made.

Good points!
Thank you.

The only way to find out for sure is to ask. They might consider a lower offer but they are legally required to consider the best interests of the client. My advice is to name a fair price. In other words be realistic here.
Good luck!