Repossessed Houses for Sale proved irresistible for Investors

By November 14, 2008Articles, Videos

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Repossessions reap 86% for Allsop

Two-day auction raises £58m as lenders recoup losses through distressed sales.

Estelle Maxwell:

Allsop’s two-day residential auction trounced expectations by raising £58m from an 86% success rate. With the average rate for residential auctions running at 59%, the result was fuelled by a surge in distressed sales as lenders attempted to recoup losses.

Repossessed properties proved irresistible to many investors, sparking competitive bidding at London’s Cumberland Hotel and Café Royal auctions on 30 October and 3 November, respectively.

Distressed sales on behalf of banks and building societies made up 75% of the 670-lot catalogue, according to Gary Murphy, Allsop’s auctioneer.

He said this was the highest percentage offered by the firm in one sale, but he stressed that keenly priced quality lots were also “highly saleable”.

Murphy believed the result reflected how much vendors are listening to advice on pricing and reserve setting, which is producing strong sales often well in excess of guides.

“We are creating a market based on careful research and the properties are then stimulating competition in the room. I would be very disappointed if we were limping up to reserves and then just stopping there,” he said.

Murphy said that, as prices settled, demand had increased for new-build flats in city-centre locations.

He said: “If sellers are sensible and keep to the formula of setting sensible guides and reserves, then I do not think we will see such dramatic falls in 2009 from where we are now.

“My personal feeling is that it is beginning to settle and that we are reaching equilibrium.

“New-build properties are beginning to find their place in the market and are now showing good value for all the reasons why they were built in the first place. They have city-centre locations for which there is demand, but at a price.”

Key sales included a freehold residential building with potential for conversion to a family home in Gunter Grove, Chelsea, SW10. With a guide of £750,000-£800,000, it sold on behalf of a property company to a private buyer for £880,000.

Property prices more than halve.

Closer analysis of individual results reinforced the depth of falls in prices experienced by buy-to-let investors, as well as homeowners unable to meet increased mortgage costs. A two-bedroom BTL investment in Birmingham (above left), acquired in December 2006 for £224,950, made £93,000, a 59% reduction. A three-bedroom house in Wigan (above right), which sold for £49,950 in July 2004, more than halved in price to raise £24,000. The purchaser, who wished to remain anonymous, said: “It is very sad because I am benefiting from other people’s bad circumstances, but at this price, I could not resist it.”

Estelle Maxwell 08/11/2008 for – Some are celebrating the UK House Price Crash.

Join the discussion 12 Comments

  • James says:

    HSBC First Direct are now offering 90% LTV loans. Coupled together with cheaper housing… is this where prices bottom out?

    Hard to Find this mortgage on their site but have seen it mentioned a couple of times in the last week.

    See here:

  • RepoLeads says:

    We supply data of all homeowners that have received possession orders from the courts. That means you can get to them BEFORE they are repossessed.

    This is the secret to buying property at the greatest discount because you have no competition and the property is essentially sold off-market.

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  • Ozzy says:

    I am interested to buy free hold repossessed or pre-repossessed houses in London.
    Could you send me a list of repossessed houses.
    All the best.

  • Dieudonne Badelo says:

    Does anyone have a list of repossession houses in the London area?

    Many thanks

  • Kieran Mountney says:

    Can I have a list of repossessions about to happen within 20 miles of the sutton coldfield (west midlands) area please?

  • jenny feasey says:

    can i have a list of repossessions in the west midlands area please?

  • Michael Thompson says:

    If you are want to purchase a repossessed property in any specific area in the UK, it is best to find out which houses are being sold by auction.

    A lot of the houses sold at auction are repossessed. Try: they have most of the UK houses for sale, selling through estate agents.

    You can search for properties in your desired area, then look for houses that are selling via auction. Once you have a few properties, contact the agents and find out which houses are repossessed houses for sale.

  • Simon says:

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  • Amara Seeva says:

    I am interested in buying repossessed and need redcoration work done free hold houses in London. Please email me your list of these category houses.

  • You might want to check this link Amara for more reference.


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