Why Buy Repossessed Property in Liverpool

Buy to Let Opportunities in 2023 - Repossessed Properties

Repossessed properties can make excellent buy to lets for property investors in Liverpool. With homeowners being hit with high-interest rates during renewals, many are choosing to sell or give properties back to the bank for repossession.

In 2021, 302 homes were repossessed in Liverpool City Region, according to Liverpool World News. Over 90% of those properties were buy to let rentals given up by over-leveraged landlords. Most repossessed properties go to auction, where sales can happen up to 30% less than market value (source).

Why Buy Repossessed Property in Liverpool

Repossessed properties are great for investors because you can often buy them quickly below market value with a high yield. Because the majority of homes are given up by former landlords, they often meet property investment requirements and are ready to let soon after purchase (provided you find the right tenant).

Keep reading to learn more about repossessed houses for sale in Liverpool and whether investing in a Liverpool buy to let at a property auction is a good idea.

Do All Repossessed Houses Go to Auction?

Repossessed houses are properties that are seized by the mortgage lender because the monthly payments were defaulted on by the homeowner for an extended period.

Because most lenders want to make a quick, non-payment sale, most repossessed properties in Liverpool go to auction. However, this isn't the case for all repossessed homes.

Some lenders instruct a local estate agent to sell a repossessed property if it appears to be more beneficial to them. For example, if they think the sale will be faster, go to a better buyer or will obtain a higher resale price.

Are Auction Properties Cheaper?

According to Money Saving Expert, auction properties sell for an average of 10-30% below market value. This means investing in a buy to let property at auction in Liverpool can be cheaper than buying through an estate agent.

However, it's important to remember that some homes sold at property auctions require investment before they can become a buy to let.

If it's a former property that's been repossessed, it could be in disrepair. A residential home may not be in poor condition after repossession, but it may need some work to meet buy to let standards.

Is It a Good Idea to Buy a Repossessed House in Liverpool?

Buying a repossessed property in Liverpool is a great opportunity to purchase a buy to let for a reasonable price. Because repossessed properties are usually either family homes or former rentals, they are often in a good state and meet current buy to let requirements.

Additionally, most lenders sell repossessed homes at auctions (rather than via an estate agent), because it's a quicker sale. Most auction sales are completed within 4-8 weeks. This is significantly faster than buying a property via traditional methods, which, according to Zoopla, can take between 15-16 weeks.

In summary, buying a repossessed property in Liverpool can be a great idea because it:

• Offers a faster sale at auction
• Comes at a great price (potentially lower than market value)
• Can be ready to let immediately (especially if owned by a former landlord)
• Can be in excellent condition

Speak to a Property Investment Liverpool Expert

Thinking about investing in a Liverpool buy to let? Tuna Fish Property are your local property experts. Get in touch today to discuss buying a repossessed property through our property sourcing Liverpool service and letting agents Liverpool services that can help you.

Letting Agents Liverpool

Need letting agent services? Buying an auction property or repossessed home in Liverpool can happen quickly, in as little as 30 days, depending on the auction rules.

Our property management services are here to help you find a reliable tenant quickly and seamlessly. Learn more about our letting agent services.