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Auctions
Auction Property - buying at auction can be a great place to find a bargain property, but it must also be recognized that it is not always the best place for a first timer. Some properties can appear to be very cheap and some more naïve investors may commit to a purchase without even viewing the property in the hope that they can secure a mortgage on it after they have left the auction room. However, with most auction companies stipulating that completion must take place within 28 days of the auction, this may not always be possible.
For More information on Auction Finance, speak to one of our experienced mortgage brokers on: 0844 800 8487
Top tips for Buying at Auction
- Highlight any properties that you are seriously considering and arrange viewings well in advance of the actual auction day.
- Request the full solicitor pack that is normally accompanied with each property. This will highlight any legal issues that need to be address or that may determine your decision as to whether to proceed or not.
- Find out whether there are any tenants in situ and the agreement that they are on with the landlord. Check if there are any rent arrears.
- Ensure that you get a valuation done on any properties that you are considering bidding on. This can be an expensive process but you need to know that a mortgage company would be happy to lend on the property and at the figure you are expecting to pay.
- Find out as much as you can about the area that the property is located in. For example, has there been an increase in building work, crime, planning permission granted for a motorway at the end of the garden? These are all issues that need to be addressed.
- Set your maximum limit that you are prepared to pay for the property ensuring that this adheres to the maximum you have been advised you can borrow from your mortgage lender.
- If your bid is successful, ensure that you contact your mortgage company immediately so that they can get the necessary paperwork finalised for your purchase.
- Advise your solicitor of your successful bid so that they in turn can prepare the necessary legal work ready for completion.
New build / Off - Plan or re-sale property?
Knowing whether to buy a new build or a re-sale property is very much down to the individual landlords choice. However, there are considerations for both which need to be taken into account.
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Auctions