Repossessed properties sold for 35% below market value
Repossessed properties typically sold for between 30% and 40% below their true market value during 2008 and 2013, according to figures from mortgage administration firm HML.
Their data shows repossessed property sold prices varied considerably between areas of the UK, with Northern Ireland the most affected. Its properties sold for an estimated 42% of true market value. Scotland, the North-West and the North also struggled with the average house achieving 63% of its actual value. The least affected region is Greater London, where repossessed properties sold for an estimated 78% of the true market value.
Damian Riley, director of business intelligence at HML, said: "Many repossessed Britons do not realise that they may still owe their former mortgage lender money if the property sold for less than the value of their mortgage. As our recent shortfall debt figures noted, over 188,000 former UK mortgage holders still owe their former mortgage lender money, with an estimated 83% of repossessions in shortfall, with the average shortfall £43,000."
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