While inherited property is a tremendous gift to receive, it can become a problem property to sell when it causes cash flow problems and tension amongst beneficiaries if the property is empty for long periods and/or the property requires repair or modernisation.While the probate process usually takes six months to a year, it can take longer if the executor delays his duties or if the estate is complicated. Add to that another 6 months (on average though property that is difficult to sell can take significantly longer) to agree a sale and complete through an estate agent and it’s easy to see how the additional running costs (insurance, security, utilities, council tax etc) can cause problems to a limited budget and havoc to personal routines / free time.

If proceeds from a property is to be shared amongst siblings (or others), each will have different needs and wants – while some may want a fast sale, others might not want significant compromise on the selling price.

Our ’28 Day Auction Sale with Fees’ will satisfy all requirements – although the sale price we achieve is usually appx 5-10% lower than an estate agent will achieve in 6 months, it is significantly more likely to complete due to our rigorous buyer approval processes.

Properties can be deemed unmortgagable for a wide variety of reasons.The most basic test for determining whether a lender can offer a mortgage on a house or flat is whether it is habitable which usually means having a kitchen, a bathroom and a roof.

Other reasons that may make properties un-mortgage-able include:

• derelict property
• short leaseholds (typically less than 70 years) or where no management company exists.
• wall tie or structural problems
• sitting tenants/Regulated Tenancies
• defective lease.
• damp, dry or wet rot.
• boundary disputes or where planning applications have not been applied for correctly.
• part of the building is in severe disrepair and needs demolishing
• unusual/non-standard construction – e.g. the type of concrete used to build a flat or house could lead to a property being deemed unmortgageable. This is a particular problem for ex-local authority properties
• Japanese knotweed
• building work that does not meet building regs

The Misrepresentation Act 1967 means it is illegal to sell property with know defects or problems and deliberate, significant misrepresentation can result in rescission of the contract, meaning sellers have to buy back their old property and cover any expenses of the buyer, including mortgage interest and legal costs.

It is possible to sell a property with these problems to a cash buyer if they are clearly identified as part of the sale however it may be more cost effective to fix the problems in advance of the completion.

If some problems are rectified before a sale is completed, they do not have to be listed in the sale – e.g. by extending a leasehold before the sale completes, sellers do not have to declare a short leasehold in the property description.

By selling problem property using our 28 day Fixed Price option, we can release a cash advance as soon as a sale is agreed to fund essential work and/or processes.

If a leasehold property has less than 70 years on a lease it is usually considered un-mortgage-able. Use the cash advance available in our Fixed Price sales option to extend a lease prior to completion to ensure you receive the maximum amount for your property.

Because owners of apartment leases that were originally at least 21 years in length can only apply for a 90-year extension after two years’ ownership and the delay and/or uncertainty a new buyer will experience will further affect the selling price of the property, the best option to to sell a London property with a short leasehold is to extend the lease before the sale.

When a couple separates or divorces sometimes the best option for all parties is to move on with life and away from a shared home full of painful memories – especially for the person left behind if one person moves out.Sometimes neither person can afford to run the property as a single person so the person who has moved out has to maintain mortgage payments in addition to their new expense and cannot plan a new mortgage with an existing loan.

The added financial pressure of running separate living arrangements can turn a mutual decision into an acrimonious split.

A fast sale for the full market value allows all parties to move on with their lives with minimum losses while a fixed price sale provides a cash advance that can be used to secure alternative accommodation while the sale completes.

Home owners who have interest only or endowment mortgages can find themselves unable to repay the loan. In many cases the only option available to them is sell their homes to repay the debt.

If there has been sufficient growth in a property value over the term of the mortgage, home owners may be able to repay the mortgage and buy a smaller property using the equity plus the value of the endowment.

To secure bonuses that are paid only if the endowment reaches its full term, some owners leave the downsizing process until the mortgage repayment is due.

Unfortunately, not all lenders will temporarily delay repayment while the owner waits for a house to be sold. In the worst case scenario, they can start a repossession process. If a property is repossessed generally the amount owed will increase and the sale value will decrease.

If the problem has reached the repossession process, National Residential can halt the proceedings by buying property in 7 days and informing the lenders of an agreed sale.

BANKRUPTCY CHARGES CAN DOUBLE A DEBT.

You could lose your home and ADD bankruptcy fees and/or costs of up to £60,000 if you let trustees control repayment of your debt*.

*A trustee charged to manage a banckruptcy and ensure all debt is repaid can charge c.£300 per hour and you could be charged a Secretary of State fee of 17.5% on the amount raised from the sale of your home to repay your bankrupt debt.

Meanwhile, your bankruptcy creditors can also claim 8% statutory interest on outstanding amounts.

You will save money the sooner you can repay your debts.

Your house can be forcibly sold up to three years after your bankruptcy order if there is no other way to repay your debts.

You will probably get a higher price for your house if you sell it yourself and you could avoid thousands of pounds in added cost.

It is important to avoid repossession if at all possible to ensure you get the best price for your property because if the property is sold for less than the loan or the amount does not cover the added fees and costs, the debtor is liable for the difference. In other words you may lose your home and still be in debt.

Although they are legally obliged to accept the highest offer for the property, they are unlikely to prepare the property for the best impression or to ensure they choose the best option to sell the property.

Many repossessed properties sold at local auctions are snapped up by property developers at a very low price simply because they are not widely advertised, frequently held at inconvenient times for people in full time employment and the properties are not ‘dressed’ for best presentation.

In urgent situations, we can buy property in 7 days for 70 – 80% of the estimated value to halt a repossession order to give you time to arrange alternative accommodation or with more time to solve the problem, we can sell your property in 28 days for a fixed price (80 – 90%) so you can take a cash loan from any equity in the property to secure new accommodation.

NB. The discounts we deduct reflect the risk we take buying property we may not be able to sell on to other buyers and our finance costs. It is the highest we can offer and remain profitable while still competing with other quick sales companies. It is not taking advantage of a desperate situation. We also know if the offers we make are not a better option than allowing a house to be repossessed, no one would take them. We believe our offer would be better than the price the property would achieve at auction.

Feedback from potential buyers is a valuable tool and it is important to listen carefully – e.g. if a person who has viewed the property says they are not interested because a property is too small, do not spend time trying to persuade them they are wrong or take offence; instead look at removing clutter and other ways to emphasise the space you do have.If you have not had any viewings, consider the ‘kerb appeal’ because the first impression most people look for is the exterior so make sure that the property is attractive from the outside and looks well maintained. Make sure all paintwork is fresh and keep plants watered.

If the outside of the property is attractive and looks well maintained, the most probable reason for no interest is the asking price. Unfortunately, when selling through an estate agent, it is impossible to reduce the asking price without it impacting on the sale price.

However, although ultimately our starting prices are set by our clients, by selling through our Modern Auction type sale model, we can start property at very low prices that are sure to attract attention without compromising the sale price potential.