An Association may find itself buying a property from a mortgagee exercising its power of sale. This might be because a mortgagee wants to surrender a shared ownership lease rather than staircasing or is exercising a power of sale over a property surrounded by other properties owned by the Association.
The involvement of a mortgagee does not make a great deal of difference to the conveyancing process. The mortgagee will want to complete the sale as quickly as possible. It will not want to negotiate documents and will not provide extensive replies to enquiries. Accordingly, the transaction is likely to move much more swiftly than a standard residential purchase.
There are a few points which are worth noting:
The mortgagee will not give much information and will exclude itself from any liability in respect of ownership of fixtures and fittings. This means that the purchaser needs to be careful not to dispose of any items left at the property which may still be owned by third parties under rental agreements etc. It may be prudent to store any such items before disposing of them.
Despite the few differences and points to note mentioned above, transactions with mortgagees do usually proceed smoothly and are more straightforward than standard purchases.