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  • New Members

    Proceeding with 1st refurb purchase

    Hi All... I am in the process of proceeding with my 1st refurb - a property being sold on the open market (offer accepted).  It is a repossession so the selling solicitors have stated it must stay on the open market with a 'public notice' added to the sale details to confirm my offer is accepted. I am having a small wobble based on the process.  I pushed for a 14 day exchange as I assumed this is best for me... to minimise the chance of me being 'gazumped' .... this was accepted by the selling solicitors... but I now realise that I have naively missed a key point.

    SEARCHES - my solicitor is saying searches will take minimum 4-6 weeks to complete and is asking me to sign a buyers beware indemnity if I do not proceed with searches to stick to the quick exchange... this makes me nervous.  So do I now revert back to a longer exchange period and get the searches done properly but maybe risk a higher bid landing, or do I proceed without?

    Does anyone have any experience - or suggestions.  Should I push the estate agent and selling solicitor to remove the public notice and change to Sold STC or is this normal and I just have to hold my breath for 4 - 6 weeks whilst searches complete. My solicitors costs are 'NO SALE / NO FEE' so I guess I am only risking my searches fees if I proceed to have them done and extend the exchange period?

    Thanks all.

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    Hi Nigel

    You could always consider search indemnity insurance. This is a type of insurance that covers you in the event of adverse searches if you are unable to wait for them.

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    Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk


    Thanks Chris! Just doing some quick online research and I understand this covers the reduction in property value if the search shows major issues?  Is it expensive to take out and is it a commonly used protection in this circumstance... does it cover all potential issues? (I will keep researching also).

    Thanks!

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    I couldn't possibly say as I have not used one in years, but I don't think it will be more than a few hundred. Some cover more than others and some have limitations whereby they only indemnify a lender and not you so be careful to choose wisely.

    Your solicitor should be more than familiar with these policies and also their cost.

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    Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk


    My experience of trying to view a property in this situation was not very fruitful. Despite the notice, as far as the estate agents were  concerned the property was under offer and was going through so they deterred me from viewing. This was years ago but I imagine most estate agents at this stage can see their commission payment being imminent so won't be looking to upset the apple cart at this point by bringing new bidders into the mix.

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    My second investment property was being sold to pay for care costs. The council insisted it remained on the market but nothing happened other than a 3 month delay. It was in the winter though.

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    My experience is that this is the norm for repossessions. The  lender will have repossessed the property due to mortgage arrears, because of this the mortgage companies solicitors are under a legal obligation to try to maximise the sale price for the mortgagee. This will then be used to pay off the outstanding debt (capital and Interest) if their is sufficient. You might also wish to start talking to a solicitor in respect of the purchase preferably one who has experience of repossessions, my experience is that selling solicitors with repossessions tend to give very little if any warranties regarding the property ie if theirs a kitchen who actually owns it ( not a problem if your ripping it out).

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