Undervalue sale of property repossession

by Readers Question

13:31 PM, 21st November 2017
About 2 years ago

Undervalue sale of property repossession

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Undervalue sale of property repossession

I had a property sold by my lender for what I believe was undervalued.

It comprised of a house converted with consent into 4 x 2 bed flats producing £5200 per month on ASTs.

The lender kept the property for 1.5 yrs systematically vacating each flat thus reducing income. I believe each flat should have been sold separately, but instead after such a long period exchanged contracts who subsequently sold the contract at auction 2 weeks later and made £160k profit!

Does anyone know if any other cases of this kind have been reported or any comments greatly appreciated.

Nrinder



Comments

Nrinder Gosal

18:31 PM, 22nd November 2017
About 2 years ago

Reply to the comment left by Ian Narbeth at 22/11/2017 - 17:15
Thanks Ian
I’m just in the process of gathering as much information as I can and also seeing if anyone else is in the same predicament. On the face of it you could say a possession order was granted so hard luck. But I feel it runs a lot deeper. Any mortgage/loan has exit clauses to pay back on demand if market conditions change. Highlighted by BoI and West Brom who converted tracker rates to variable to suit themselves. My properties were in prime London locations and very easy to rent . I will call soon . Thanks Nrinder

Winsome P

2:06 AM, 23rd November 2017
About 2 years ago

WhatsApp The lenders name

H B

7:03 AM, 23rd November 2017
About 2 years ago

Reply to the comment left by Winsome P at 23/11/2017 - 02:06
And I thought that they just provided a messenger service.

Kate Mellor

8:43 AM, 26th November 2017
About 2 years ago

Reply to the comment left by John Maynard at 22/11/2017 - 15:03
Splitting the titles, creating and registering individual leasehold titles in that short a length of time would have been an impossiblility.

Kate Mellor

8:48 AM, 26th November 2017
About 2 years ago

Check your buildings insurance on these properties as all mine routinely cover legal expenses which may help you financially with any legal challenges.

Nrinder Gosal

10:03 AM, 26th November 2017
About 2 years ago

Thanks Kate
One of the properties already had a separate registered title and that is the way it was purchased as a separate leasehold flat albeit I already owned the freehold of the building.
As regards to creating separate titles I cannot understand you timeline. I regularly do developments and register leasehold titles and it’s never problematic especially as they would have done floor plans already for selling purposes and of course they would have the freehold title anyway so no complications on terms of the leases. Don’t forget they held the property for one and a half years!
Thanks for building insurance advice I will look into it
Nrinder

Kate Mellor

15:46 PM, 26th November 2017
About 2 years ago

Reply to the comment left by Nrinder Gosal at 26/11/2017 - 10:03
Sorry Nrinder, crossed wires. I was answering another posters question asking whether the purchaser who RESOLD the property at auction two weeks later had added value by splitting titles. Two weeks to turn this around wouldn’t have been possible.

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