Repossession to completion times shorten

Published on

The length of time from taking a house into possession until its sale has dropped significantly over the past year, falling from 154 days to 115 when sold through Spicerhaart Corporate Sales.

The shortening of the time it takes to achieve a sale brings benefits to the borrower, by returning any surplus money to them more rapidly.

At the same time, the amount of money being achieved for a repossessed home continues to rise based on the current buoyant property market. Spicerhaart Corporate Sales now achieves an average of 110.50% of the asking price for all the properties taken into possession that they go on to sell, up from the average of 98.6% a year ago, as the shortage of available stock is driving up the price that purchasers are willing to pay.  On a property worth £150,000 that is an extra £17,250.

The regions with the highest number of repossessions were the North West, North East and the East Midlands.  The average sale amount in these regions differed greatly from just £97,739 in the North East up to £127,316 in the East Midlands. Compare this to London which sees an average sale price for a repossessed property at £628,000.

Dave Miller, client account manager of Spicerhaart Corporate Sales, said: “Having to take possession of a property is always the position of last resort, but when it has to happen it is essential that it is done both quickly and professionally, with the borrower’s needs taking priority.

“It is a myth that repossessed homes are sold off cheaply.  Lenders, asset managers and corporate sales departments like ourselves have a duty of care to get the best possible price for a repossessed property. By ensuring that we engage with the prominent local estate agent to market and sell the property we are able to take full advantage of the buoyant property market we currently have. The higher the sale price aligned to selling the property in a timely manner ensures that we have a positive impact on either the surplus or shortfall to the borrower which is always our primary goal.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Virgin Money and Clydesdale Bank cut product transfer window to four months

Virgin Money and Clydesdale Bank are reducing the length of time customers can apply...

The Leeds cuts mortgage rates and lowers barriers for first-time buyers

Leeds Building Society has announced a raft of mortgage rate reductions of up to...

Accord widens access for those on Universal Credit and without indefinite leave to remain

Accord Mortgages has relaxed key elements of its lending criteria in a move it...

Vulnerable equity release customers still overlooked, warns ERG

The Equity Release Group (ERG) has warned that the financial advice industry is failing...

Widespread criticism for mooted plan of NI on rental income

Landlords may soon be required to pay national insurance (NI) on rental income as...

Latest publication

Latest opinions

HMOs: market realities, future prospects, and the broker opportunity

The HMO sector remains one of the most dynamic parts of the private rented...

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Passing the affordability exam

As teachers and students of various ages have spent August nervously opening exam results...

Investors are changing their approach – and lenders should too

The buy-to-let market never stands still, but the pace of change in recent years...

Other news

Virgin Money and Clydesdale Bank cut product transfer window to four months

Virgin Money and Clydesdale Bank are reducing the length of time customers can apply...

The Leeds cuts mortgage rates and lowers barriers for first-time buyers

Leeds Building Society has announced a raft of mortgage rate reductions of up to...

Accord widens access for those on Universal Credit and without indefinite leave to remain

Accord Mortgages has relaxed key elements of its lending criteria in a move it...