Repossessions - "Where are the radiators?"

There are so many things to look out for when you are purchasing a property and sometimes to the untrained eye this can lead to unforeseen consequences. One such consequence that could befall you is unwittingly falling in love with a property that has been repossessed. Having said that there are normally tell-tale signs and red flags that indicate that the owner has done a runner. It is important that you identify what these are because the downsides of buying a repossessed property may put you off. Let me explain.

The first giveaway that the property has been repossessed is that you will not meet the owner. Self explanatory! The viewing will be done by the estate agent. This should immediately start ringing alarm bells. Next will probably be a mountain of mail stacked up behind the front door – my advice is to get there early to ensure that the estate agent does not have time to do a once over on the property. Thirdly, you will find that there are no personal belongings within the property. This may lead you to believe that you are potentially purchasing the property from a developer. The fact that the radiators may have been ripped off the walls should make it clear if it was not already that you have entered into the land of the repo.

If you have decided to look at a repo it is likely that the main reason is that it has been advertised at a ridiculously low price. As with everything in life if it is too good to be true then ............. Yes, you may be able to buy the property at a snip but there are some downsides that you need to be aware of. Here are a few:-

1. You will get absolutely no guarantees or warranties that the central heating system works.

2. The seller being the bank or building society will not give you any guarantee that the factoring costs have been paid.

3. In the event that alterations have been carried out without the necessary consents then it is unlikely that the bank will pay to have this resolved. The best that you can hope for is an indemnity insurance policy.

4. In all likelihood, you will have to pay for your own coal authority report and other reports.

5. Expect that there will be delays in the process as problems are more like when buying a repo.

So there you have it a quick run through what to look out for and the potentail issues. I have come across my fair share of repos during my 20 years and there are some bargains to be had - but as ever forarmed is forwarned!