Guide to buying property in the UK

Purchasing a property at auction can be daunting; however it can be a great way to get on to the property ladder. When purchasing a property at auction, especially as a first time buyer, talking to us at an early stage can help and guide you through this process to avoid mistakes that could be costly. We can only give general advice before the Legal Pack is available.

Finding an auction

When finding an auction house you should decide on the area you are interested in. After contacting auction houses in that area you can ask for a catalogue and subscribe to their mailing list. Catalogues are normally published a few weeks before the auction date.

Preparing for auction

Once you have found a potential property to purchase you can contact the auctioneers to book viewings A few things you can do while researching an auction property are:

Take a surveyor, builder, or architect with you to any viewings to conduct a thorough inspection.

Consider a survey

Don’t rely on the guide price – often catalogue guide prices are lower to attract bidders, ask a local estate agent and compare to other properties in the surrounding area.

Sort your finances - If you need a mortgage, you’ll need to get a mortgage agreement in principle (AIP) from a bank or building society before the auction. You will pay 10% of the purchase price as soon as the hammer falls and then have a month the pay the remaining 90%. If you can’t pay this you may lose your deposit.

Examine the Legal Pack – the auctioneer will give you a legal pack of the property you are interested in. this legal pack will include the title deeds, local authority and environmental searches, a seller’s information form and a fixtures and fittings list. Properties are often sold at auction because they will struggle to sell on the open market, possibly because of legal problems. The Legal Pack should reveal details of any legal problems affecting the property.

Instructing a solicitor to look over this pack will ensure that the property is legitimate and will speed up the process if your bid is successful

The day of auction

On the day of the auction, you’ll need two forms of identification, such as a passport or utility bill, and proof that you can afford the 10% deposit. If you don’t reach the reserve price don’t despair. If the property doesn’t go for the reserve price the seller might decide to go for the next highest bid once the auction is over.

After a successful bid

If your bid is successful at auction, you will then pay your 10% deposit. After this you will have to do the following:

Secure the mortgage – your lender will evaluate the property

Get insurance – the property is now your responsibility

Consider a survey (if not already done so)

·Pay the remaining 90% in the next 28 days

instruct your Solicitor.

HB 121 Solicitors are experienced in dealing with auction sales for both Buyers and Sellers. If you are looking for property solicitors in UK Contact us at info@hb121solicitors.co.uk or on 01562 702655.