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Property undersold !!!!


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Hi all

I have been on and off of this forum over the past year or so trying to deal with a pending repossession of my house. In brief we had a commercial property secured on our home. This commercial property was repossessed and handed over to Law of Property Act Receiver. They sold it at auction for £50K (about 50% of its value). Complained to the bank, Lloyds, about this and they said "nothing to do with us". Usual story, they say the LPAR is only appointed by them but is ultimately working for us (yea, right) so any complaints should be back to the LPAR. We complained they said they considered they got a good price etc etc. Went to the FOS with a series of complaints about Lloyds including this one and just heard back after 18months that they are not going to uphold our complaint and they too say any issues with the LPAR should be directed to them and the FOS will not look at it.



However, since receiving all the information within my SAR I see that Lloyds had the property valued themselves 12 months prior at a £100K. The LPAR selling it so cheaply has ultimately left a massive shortfall which will inevitably lead to the loss of my home.



My question is, has anyone got any advice as to what action I can take against the LPAR for underselling the property? There reasoning was that they took the decision to sell at auction because it would stop Lloyds apply interest .... really don't know how they work that as I still owe a huge amount to which Lloyds are adding interest to the tune of £6K/year as a result of them selling so cheaply. Who are they governed by? What higher level can I take my complaint against them to?

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Auction is open market so not really much mileage in a complaint about underselling. It fetched what the market determined its value was.

A lot of commercial property is almost unsaleable so 50% less than you think it is worth may well be right, depending on likely planning consents. Did you have a commercial property valuer look at it to determine your value or is it based on something else?

You need to look at the other parts of the charges applied to your debt rather than this.

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  • 1 year later...

I have a similar situation with lloyds bank, though it wasn't sold at auction it was withdrawn as a result of the lpa receivers being negligent by not splitting the title correctly and not implementing the planning conditions attached to the sale, so the buyer (a builder) bought the site £120,000 cheaper than market value. the bank isnt interested as they claim they had no dealings with the sale although the lpa receives also added fees of over £10,000 on top, which the bank allowed. The financial ombudsman cant help either as it is out of their jurisdiction due to the property being in the company name, though the bank is holding us liable for the personal guarantee.


Its a very grey area which allows the banks to get away with any mis selling of properties by allowing lpa receivers to deal with sales. I have been advise that if I try to take the lpa recievers to court it would cost me as much as the guarantee of £50,000 plus interest. I could elaborate much further though its got very complicated and expense with solicitors etc.......

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