My rented home is being repossessed – can I buy it?

My rented home is being repossessed – can I buy it?

13:37 PM, 22nd April 2014, About 8 years ago 15

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Dear Property118 readers,

We are currently renting our home and have recently discovered that the landlord has not been paying the mortgage so the house is going to be repossessed. The court date is in May.

We would very much like to buy the house. We are able to afford a mortgage and are willing to pay market value.

However it seems that we will have to move out of the house before it can be put on the market. We have three small children and do not want to move.

Is there any way we can buy the house directly from the lender without having to move out?

Many thanks

RachelRepossessed



Comments

BigMc

8:49 AM, 23rd April 2014, About 8 years ago

Reply to the comment left by "Industry Observer " at "23/04/2014 - 07:37":

Hi, very valid point from Sally T. If Repo court case is in May you could still buy now from landlord, but of course only if property is in positive equity.

Chris Amis

9:31 AM, 23rd April 2014, About 8 years ago

@OP

This could all be rather academic if you have not got a mortgage arranged, a bunch of new regulations just came in to make it a lot harder/slower.

I heard a talking head on Moneybox suggesting you see a mortgage adviser 9 months in advance, it cannot be that bad but maybe you should check.

Industry Observer

10:03 AM, 23rd April 2014, About 8 years ago

Let me after 25 years of Nationwide experience in matters such as this, and then 20+ years in lettings industry seeing the problem from the other side, put everyone rather painfully straight on this individual case, and others generally.

By the time matters get to a Court date having been fixed it is all too late. Even in the slowest/busiest court that date will be no more than three months hence, and often only about 6 weeks.

There is absolutely no chance of completing a sale within that timeframe even if the Landlord was living next door to you and desperately keen to complete such a sale. Just too many technicalities and legal hoops to go through, not to mention the mortgage you'd need to take out.

Having started the Court ball rolling with associated costs the lender is extremely unlikely to back off even to the extent of asking the Court for a postponed hearing date.

Your best bet by far Rachel, and I am sorry to say this because I am only too well aware from personal experience of these situations of the upheaval and upset they cause, is to look to your own situation and find alternative accommodation. Then take advice on suing the Landlord for breach of Quiet Occupation

Chris Amis

10:11 AM, 23rd April 2014, About 8 years ago

OP needs to find out if the deposit is protected, there are 3 possibilities, and the best of those is a custodial scheme which I understand may be slow to pay out if the LL does not complete paperwork promptly.

If it is unprotected, they can get 3x, but where would they be in the creditors Q?

If it is in an insurance scheme will they get it or will the scheme bounce the LL out and leave the tenant out of pocket?

I would start setting the rent aside myself.

Rob Crawford

11:33 AM, 26th April 2014, About 8 years ago

Its very sad when this happens. If the Bank is dealing with this and you have the assets to purchase the property then contact them as soon as possible. They will be keen to recover their costs so your offer could be attractive to them. If the Bank has already engaged with an an Estate Agent I doubt the Bank will disengage from the repossession process. I would be interested to know if you are in a fixed term tenancy or periodic. Also were you provided with notice relating to Ground 2 possession? You should have received this before or at the time of signing the AST. It is often in the AST. If you are in the fixed term and you have not been served prior notice of Ground 2 then you can take the landlord to court for illegal eviction. This in itself won't stop the Bank evicting you, however, by bringing this to the attention of the landlord may encourage him/her to sort the issue with the bank, if at all possible. If you are evicted please do plan and move out before the eviction date. Otherwise the Bank is legally within their rights to empty the property of your belongings and dump it all on the street!

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