Repossession property going to auction with kit lender regaining possession.

[DougalMcNoodle]

Error in title but can’t edit, should say “without lender “

We live next door to a rental property going to auction where the lender has failed to gain possession after repossession orders have been granted and it is being sold stating that it is not known whether the property is occupied currently. It is by a previous resident who was evicted by the mortgage company and is now back in a different flat to the one their existing lease was for and another resident who moved in after first failed repossession attempt.

We have been considering selling for unrelated issues for a bit but would wait until the situation next door is resolved so trying to understand what may happen to get an idea of a potential timeline.

If someone does buy it at auction and wants to evict current occupants to develop it or live in, how would they legally do this and what timescale is this likely to take? I have Googled but am still a bit unclear so if any one can give any information to point me in the right direction that would be great. Many thanks.

Sorry, I don't know the answer. Why would you need to wait for the repossessed place to sell for you to move? Is it for a freeholder signature or something? Otherwise I don't see why you would need to declare it as you aren't in conflict with the bank or new owner.

I think it would be sensible to wait for it be sold before we sell as it looks a bit of a mess at the moment with bits of wood visible in the window holding up throws instead of curtains, old cars on the drive and I think we should hold off for now in the hope it will improve.

Also we are attached to it and I think if I was a buyer I would be reluctant to buy a house attached to another with people who are effectively squatting ie. Moved in after the court granted a repossession order. They are actually fine but any potential buyer wouldn’t know this and I think we should shoot ourselves in the foot a bit putting it on the market currently.

You are right to wait before selling. We were booked to view a property and cancelled due to neighbour's property appearance.

Well traditional auction takes 28 days IF it sells (the house we where buying was repossessed 7 months ago and they cancelled our sale, its been through auction FOUR times now each time it failed to complete).

Possession orders can take much longer, months often and then they have to get bailiffs in to evict which can take another month or two often.

Honestly its unlikely anyone will want to touch this, it usually BTL investors who will just keep the tenant that buy tenanted properties but even they will avoid it if they don't know who the tenant is or if they'll actually pay (could be squatters, not a risk many would take). It would have to be a really good deal to entice someone.

Surely if it’s sold, then the tenant has no right to be there, so the new owner will have every right to evict. However, it’s a brave person who will take this on.

What is the actual mechanism to evict for new owner - if it does actually sell?

It has been an eye opener to us as kind of assumed that the court issues the warrant of possession and the bailiff come to enforce it, backed by police if necessary . But it appears that if people politely refuse to move then they stand down and go away, I have seen it happen twice now and the mortgage company appear to have given up and have decided to auction it.

Eviction Bailiff don't stand down. Police will tell owners or other people to stand down though if they try to evict without bailiffs (even if they have a possession order).

Bailiffs are court appointed eviction enforcement, they have full power too and will remove anyone 14 days after a court possession order is granted but its a service you need to pay extra for and many try to avoid it.

Bailiffs will just come take off the lock to gain entry, get tenant to leave and then change the locks.

Its probably 'Recievers' (bank appointed collection managers) you have seen with the tenants. They don't really have much legal power but take over as 'landlord' for the bank.

The bailiff didn’t gain entry twice before. The bailiffs, locksmith, guy to drain the system and someone to board the window all came at time on the possession warrant. The owner and tenants had a number of people there, it was peaceful and eventually the bailiffs etc stood down and they all went.

It has happened twice with best part of 6 months between attempt 1 and 3. Then everything quiet until recently when the house has appeared on auction site.

I had assumed they would force entry but they didn’t. So I am wondering what would change if someone got a new possession order?

That sound like receivers not bailiffs. Bailiffs have nothing to do with draining systems or boarding windows. Receivers the ones that organize people to lock up and disconnect repossessed houses, they cannot do that with squatters on premises though.

Bailiffs don't need to ask or back down they literally just enter and remove, its their job theres no way to 'protest it' its end of the line for eviction. They can use reasonable force to gain entry and police will assist the court in removal by arresting the squatters under 'breach of peace' if the person refuses to leave peacefully. Police will not assist anyone but court bailiffs though as they are the only ones with legal authority (any one else is a civil issue).

That is interesting. Everyone was referring to the main guy as the bailiff so I had assumed that he was, thanks.

I guess we are staying put for some time then as can’t see this getting resolved quickly.