For those who find themselves with unsustainable Mortgages and facing the prospect of Bank Repossession, Voluntary Sale may provide some relief.   The period of Bank Repossession can be a very uncertain and distressing time for owners.   Not only is the property repossessed and sold by the Bank but the owner loses control over the process and some of the confidentiality surrounding same.

However, there is good news for those in negative equity who want to move on and that is that Financial Institutions will generally consider the option of Voluntary Sale if an effective “pitch” is made either in person or through the owner’s Solicitor or Accountant.

A Voluntary Sale is an agreement with a Financial Institution whereby the owner proceeds to sell the property in his/her own name against the backdrop of terms already agreed with the Institution.    The format of the Agreement reached is important and the input of your Solicitor/ Accountant can be very helpful.

The first thing is that the decision to go the Voluntary Sale route should not be taken lightly and you should first speak with your Solicitor and Financial Advisor.   Indeed, many Institutions will provide a fee for a Consultation with a Financial Advisor if you opt to go down this route.

The terms of the Voluntary Sale Agreement itself are vital and your Solicitor will be experienced in dealing with these.    At the very least, such Agreements need to address the following:-

  • The price at which the property may sell and at which the Bank Consent is in place for sale.
  • The choice of Auctioneer.
  • The choice of Solicitor.
  • Responsibility for the Auctioneer’s fees and Legal fees.
  • The timelines to be adhered to.
  • The valuation of the property.
  • The treatment of any residue due following sale.

It is important to understand that every Voluntary Sale Agreement is individual to the particular Borrower.

At O’Shea Russell Solicitors we always recommend to Clients contemplating Voluntary Sale that they arrange their own Independent Valuation of their property so that, if there is an issue with the valuation on the property by the Bank’s Valuer, this can be the subject of negotiations.    We are happy to assist those looking to reach a Voluntary Sale Agreement with their Lender and to put forward your proposal without charge to the Bank. The Lender, if it agrees to the proposal, will normally agree to you using your own Solicitor and, in those circumstances, we would charge standard Conveyancing Fees only.


CONTACT: Nicholas Russell B.C.L.,BA(Hons)

O’Shea Russell Solicitors

Tel:  059 9724106

Email: nicholas@oshearussell.ie



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