Repossessed Property

Property Repossessions Background

The UK property market has been in the doldrums for some time now and press negativity combined with well publicised economic woes have meant that property purchase is not on the agenda for much of the population. Most commentators now agree that the bottom of the UK market was reached between April and June 2009. Since then property prices in most areas of the UK have been on a steady upwards trajectory, particularly so in London. This means that the window of opportunity to secure a property at a healthy discount to current market value is starting to close.

There is still time for the property investor to secure great value assets because of a unique combination of factors including restricted finance, a high number of repossessions and lower than usual consumer confidence. Many lenders, private individuals, companies and developers hold portfolios of properties which they are still desperate to sell quickly so that they can restore their financial positions. In some cases prices are now 40% lower than they were even 18 months ago if you know where to look and are prepared to dedicate time and effort.

Despite press scare mongering the UK has been better placed than many European economies to ride out the current recession as it has at least been able to control its own interest rates, print more money and our devalued currency has also encouraged exports. The bottom of the housing market is likely to be reached far quicker than most people think.

Distressed Assets

Distressed Assets is effectively a property research and acquisition company that finds outstanding value property on behalf of our clients throughout England and Wales.
Our main sources are administrators, banks, auction houses and developers who may have run into financial difficulty and are willing to sell through an intermediary at a serious discount.

Professional Service

We do all of the due diligence on your behalf from viewing the property through to financial analysis and legal research. Our property search criteria are as follows:

• Significant discount to current market value (we generally look for at least a 20% discount).
• High yield - we are generally looking for a gross yield of more than 6%.
• Condition - we only approve property that requires little or no work (cosmetics such as some painting, or new carpets are permissible). We usually find property that can be immediately rented out with no work needed whatsoever.
• Rental potential- we only approve property in viable areas which will rent out easily, we also recommend agents to use.
• Legal Research - we carry out detailed legal due diligence, where possible, to ensure that any potential problems are identified and dealt with or avoided.

Click here, to view some examples of recently purchased repossessed properties.

Finance

Finance is a limiting factor: a 25% deposit is required as the maximum loan-to-value that can currently be obtained is 75% with interest rates starting at about 4% (unless you have a higher deposit or purchase on a residential mortgage). In many ways this is a positive factor as it removes many amateur investors from the market.

We have a dedicated financial broker who will liaise with you directly to obtain the best finance available in the quickest possible time.

Conclusion