St Genix Property Buyers

A brand of St Genix Property Buyers

After Repossession – Your Duties

After repossession takes place, you will still be held liable for ongoing costs until the property is sold by your lender. You do have an entitlement to any remaining equity once the house is sold, but because the lender’s priority is to recoup their losses, they are not motivated to get the best possible price for you. They do, however, have a duty to achieve the full market value for the property. If they sell your property and the sale does not cover the mortgage, you will be responsible for the shortfall. Furthermore, your lenders have up to 12 years (five years in Scotland) to recover these funds from you.

It’s in your best interests to secure valuations from two independent surveyors, or get an asking price and sales particulars from two estate agents prior to repossession.

These are the costs you can expect to incur following repossession: legal fees, estate agent fees, interest on mortgage plus cost of valuation and shortfall after sale.

Lenders Code of Conduct

If your lenders choose to claim any shortfall from you, they must comply with a code provided by the Council of Mortgage Lenders. The first sign of adherence to this code will be the receipt of a letter sent by recorded delivery within 28 days of re-sale. This letter should include:

  • Date of mortgage deed
  • Address/description of property
  • Name and address of vendor
  • Name and address of purchaser
  • Sale price attained
  • Statement of whether sale was by private treaty or public auction
  • Completion date of the sale

Promote the Sale

Ask the Lender what date their agent was instructed to commence sale and let the lender know if you discover the agent is not qualified to get the best possible price due to his area of expertise or residence outside the local area. If you feel the listing price is too low, you can discuss this with the agent, but bear in mind the longer it takes to sell, the bigger your liability for mortgage interest.

Other things you can do to accelerate the sale:

  • Leave the property in a clean and presentable state
  • Treat the property as though you were selling it yourself. It’s in your best interest that the best sales price possible is attained.
  • Promote advertising: Ask the agent to erect a For Sale sign and list on their website.
  • Call on the agent to see that the property is correctly listed and that leaflets are available
  • You can suggest wording such as “Urgent sale”, “Available immediately” and “no vendor chain”

Free Valuation

Start your free valuation and no obligation assessment of your case by entering your details on the right. Our Application process is fast and easy.

Sell House Fast Hotline: 0208 144 1070