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Repossessed Properties

Property prices are soaring and for a high number of people they are too high, which makes finding the right property investment strategy in the UK difficult. Repossessions can be an interesting opportunity to find a property with a good price. Lender enforced sales are a great way to buy a Below Market Value (BMV) Property. Repossessed properties are property that lenders seize when the previous owner defaults on the mortgage.

Beware of Pitfalls

It can be worth it, but besides bargains there are also several pitfalls.

The repossession of real estate is possible if it serves the common good. However, the definition of the common good can be interpreted in many ways. For example, infrastructure measures – such as road construction or the expansion of the rail network – are considered to be in the general interest. As a general rule, repossessions are always a last resort. An alternative could be to oblige owners of undeveloped land to build properties instead of initiating expropriation. This, too, could serve the common good (in this case, more housing). Other reasons for repossessions can be

a financial emergency, disputes among heirs or a breakup.

In these cases, the property must be sold quickly which means that buyers can make a bargain with these houses. Nevertheless, properties that are threatened with foreclosure are not very likely to end up being auctioned, especially in times of low interest rates. The land, house or apartment is supposed to be sold on the regular market.

The entry bid for a forced auction is usually based on the market value of the property that is sold. However, in many cases the maximum bids for a forced auction can be well below the estimated market value. Before a bid is made, the funding of the house must be absolutely safe. As a rule, a bid once made cannot be withdrawn, so you have to be really sure.

Key things to keep in mind

When looking for a repossession property to invest in, you should follow the following steps:

First, you should collect information about the size, location and market value.  Prospective buyers have no right to be allowed to visit the property. As finding enough information about the property can be very difficult, it can be an essential advantage to have a tool that informs you about the property market and gives you a valuable overview. Our deal finder will give you an overview of all the offers in your requested area.

Secondly, you should calculate the costs beforehand. In order to avoid bad surprises, you should analyse what costs you will face before making the investment. That is why our deal finder will show you exact data on prices, discounts and yields.

Thirdly, you should plan ahead. Our deal finder will give you an overview of the monthly and annual costs you will have over the years. Additionally, hidden costs like renovations, insurances and property management. That way, you will be absolutely safe and can calculate wheter this is the right investment for you.

Challenges

Finding a repossessed property in the UK can be challenging, as:

  • Estate agents often don’t specialise in such properties
  • Calculating the price difference from market value is difficult
  • Analysing and comparing the features with other options isn’t feasible

Guide to Finding Repossession Deals with Property Deals Insight

With Property Deal Insight’s Deal Finder, you will find your perfect repossessed property in the UK to have a high return on your investment. Our tool enables you to find interesting repossession deals in a region of your choice to buy your property below market value.

Deal Finder Investment Strategies - Investing in Auction Properties

On the “Deal Finder” page, select “Repossessions”.

Find Repossessions Deals using Property Deals Insight's Deal Finder offering

Here, you can search for any Repossession listings in any location e.g. London, SW14 . Additionally, you can choose a property type (house, flat or land), set your price range and determine a search radius limiting the search to appropriate distance.

Find Repossessed Properties through out UK using Property Deals Insight

Upon searching, you’ll be met with a list of results that fit your search criteria. This will let you browse through multiple properties. Included in this overview is the properties’ guide prices, an estimate of their profitability and a number of property-specific details. (Bedrooms, their specific location, listing date, etc.) Let’s look at the fourth entry on the list.

Upon clicking on the listing, you’ll see a collection of useful figures and graphs relating to the property including the guide price, estimated monthly fees, maintenance costs and your expected yearly cash flow. With this information, you can gain a clear understanding of whether a property is worth your time and money investment.

Deal Insights on a Repossession Property
Detailed Deal Analysis on Repossession Property

Our tools even display the amount of cash left in the deal, year on year, based on your final offer and how long it will take to get all or part of your money back. Our professional graphics make it easier for you to analyse the numbers and to see if the property in question fits your expectations.

If you like a particular property, run an Instant Property Valuation using our Property Insights Feature. You will get essential information on that repossessed property, including:

  • Property Valuation Estimate
  • Valuation Confidence
  • Yield
  • Rental Valuation
  • Similar properties assessed
  • Average per-sqm pricing

We update our database of repossessed properties in the UK regularly, which means you always get the latest information. Get access to repossessed properties today by registering with us for free.

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