I know that due diligence is needed when buying Below Market Value “BMV” when the vendor is in financial difficulty. My understanding is that if the vendor is subsequently made bankrupt the sale can be overturned buy official receivers. However, if the buyer was to re-sell the property for a profit? Is the person who buys the property at this point still at risk if the original vendor goes bust?
For example, let’s say a property is on the market which was purchased for £105k a few months ago but its market value is say £150k. The estate agent advised the vendor not to sell at such a low price and even made him sign a letter to say it was against their advice. The same property is now back on the market at £140K. If I was to buy this property would I be putting myself at risk if the original vendor declares bankruptcy? 
Thanks
Sally
Salford has a strong rental demand; professional workers like the easy access to the City of Manchester and there continues to be strong rental demand from Salford university students.
It’s time for me to share some controversial views on why I believe landlord licensing to be a pointless exercise I think.
Can you believe these were real headlines in an email that landed in my inbox this weekend? Well my spam folder actually! ….. soon to be renamed my scam folder HAHAHA
Alex has written in to ask other landlords what they would do if faced with a similar scenario of a BMV deal gone wrong. BMV means “Below Market value” by the way, just in case you didn’t know.
Hi there