Any estate agents / people in the know

[aprilfoolsbaby]

I wonder if anyne can offer some advice.

I have found a property on the market for £185000. It's a Grade II listed terraced house over three floors. It was bought for £151000 in 2004 by someone who did some bodge work on it and has since done a flit. Major repairs are needed on it including a new roof, rewiring and replacement sash windows (amongst other things) The house is now owned by a bank who repossessed it. It's been on the market for a year now and I know the bank have told the estate agents that they will not accept less than the asking price. Oh and it's leasehold and has only 61 years left on the lease. As you can see it's not without it's problems.

I know that someone put an offfer on it and had it accepted (not sure how much for) but when all these problems came to light they pulled out.

We really love the house and are prepared for all the hassles that it brings with it, but it really is only worth £150000. How can I get the bank to realise this? They seem oblivious to the housing market and really how much work needs done on it (the previous owner ripped out 2 of the fireplaces and put some UPVC windows in without listed building consent) The longer the house is on the market and stood empty, the more it's deteriorating.

We had our second viewing today and I'm sitting here trying to write our offer down without sounding desperate. Does anyone know how banks operate in cases like this, would they even read my offer or just point blank reject it? Is there any way of actually getting through to them or do they not really care whether they sell it or not?

Any advice would be greatly appreciated

AFB

I am neither these days but have been an estate agent during the last crash.
The estate agents control/word the offers so the thruth is it is them you need to get onside, I have known banks reject higher offers because of the position of the lower offer was better.
So I would emphasise how good your position is rather than listing why you think it's only worth £150k.
But once you put that offer in leave it, step away because those projects are money pits and you'll spend £35k easily so stick to your guns.

Thanks Sorrento,

Have just re-read my offer and it just sounds like one big criticism. Will re-focus it to highlight our position.

Absolutely agree with Sorrento - sell yourself to the agent so that he is prepared to put pressure on the bank. Tbh, I am surprised the bank is being so inflexible - they are obliged to get best possible price but, after a year, it should be obvious that £185k isn't it. If they were lending on it, they would downvalue (and probably retain some funds until repairs were carried out). Do the bank know that it is listed and deteriorating because presumably they are responsible for its repair if it does fail to sell.

Are you absolutely sure you want it though - it sounds like a money pit and a 61 year lease will cost ££££ to extend (and may be unmortgageable)...

Lala - Deep down I know we're crackers to think about this house, but do you ever get a feeling that something is meant to be? Wishy washy I know, but with a bit of effort and hassle in the short term this house would be perfect.

I just wondered if anyone knew anything about buying a repossessed house? Could there be a sinister reason why the bank refuse to accept offers less than the asking price even after a year?

Not really a sinister reason more likely is the previous owner has gone bankrupt therefore the bank cannot chase them for the difference between the outstanding mortgage and what it sells for so they are hoping some fool will pay the asking price.
This is what I always say to people who think repossessions are the bargains, they aren't, you need to find the individual person who is a distressed seller, once it reaches the banks hands they can hold out 10 years if they have to in order to minimise their losses.

It could be the outstanding mortgage on it is more than the £151000 it last sold for. The previous owner might have borrowed more against it later.

The bank has a duty of care to the borrower to get the best possible price for a repossessed property.

There is a general belief that a repossession is going to be a bargain (which years ago they were as the bank just covered their own backs) but that did change when the duty of care came into force. Can't remember off-hand when the regulations were changed.

Yes, it is the duty of care thing but this seems a bit OTT - the best achievable price may not be the price they are asking and after a year, you'd think they would recognise that. Do you know who the freeholder is - is it some big estate? I only ask because, the more you pay for the house, the more you will be expected to pay to extend the lease by setting a benchmark for its value.

Is there any way you can speak to the freeholder about putting pressure on the bank to sell because obviously he/she/they don't want to see the house deteriorate either. I would do a lot of investigation before you put in any sort of offer because this property does sound as if it has the potential to cause untold stress and expense.

Thanks everyone for your replies.

I contacted the conservation guy at the council and he was really helpful. He passed on some information from a man who had an offer accepted on the house just before Christmas. He had had loads of quotes for all the work (total about £38000, we estimated £50000) His solicitor had contacted the freeholders and once they were convinced that they were going to live there rather than just do it up and sell it to make a quick profit, they agreed to sell him the freehold for £5000. The reason he didn't go through with the sale in the end was because the seller wanted to complete within 4 weeks and his bank stipulated that the essential work be done after exchange before they would release funds on completion, which made it impossible for him. We would be funding the purchase with a 15% deposit and a mortgage on the rest. So I guess we would end up in the same scenario.

The potential buyer was happy for anyone else considering buying the house to read through his correspondence with the council and also to speak to him. He seems really switched on and like us loved the house, we've emailed him so hopefully will be able to weigh things up and decide if it's going to be worth it.

Does anyone know about mortgages? What would be the chances of our mortgage company lending to us looking at this chap's experience?

There are specialist self-build mortgages offered through people such as BuildStore where the expectation is that you are buying a wreck but you may need more than 15% deposit. Most importantly, find out how much original guy offered .