Property auctions have a reputation for being exciting and profitable. But they are laden with untold risks and you must have your wits about you. Not to forget being in good financial shape so you don’t fall foul of the strict payment deadlines.
It should be emphasised that this is a complex subject, and a note such as this can do no more than highlight the issues that need to be considered and discussed. Here are some brief pointers to keep in mind.Here are some brief pointers to keep in mind.
Firstly, go through the auction catalogue carefully and make sure you attend the viewing. If possible take a builder or surveyor along with you. Try to attend the first set of viewings and then go back with a professional. Keep in mind you may not buy the property, so may have to take chance and it will cost you roughly £300 – £500 for a basic survey.
Secondly, you need to have a solicitor lined up and as you’ll only have 20 – 28 days to complete. Plus, we recommend that you instruct a solicitor to review the legal pack before you place a bid at auction. It can be a false economy by not bothering with a title report or survey before an auction. There are properties with title issues or structural defects placed into the auction houses and these may cause you to loose your deposit or turn your hair grey.
Thirdly, not all legal packs will have a full set of searches and search indemnity insurance could be an alternative.
Fourthly, if you are successful at auction make sure you take out building insurance immediately. A leaseholder for a residential property should not have to arrange buildings insurance as the vast majority of the time, the freeholder will have arranged this in line with their obligations of the lease but make enquires.
Do make sure that you get professional advice first or otherwise your bargain may turn into an expensive mistake.
If you are interested in purchasing a property at auction and have any queries, please contact Abu Valimahomed at Meaby&Co: firstname.lastname@example.org or call 020 7703 5034
Meaby&Co is authorised and regulated by the Solicitor’s Regulation Authority (SRA Number 447880) and registered in England and Wales with registered number OC322672 at 2 Camberwell Church St, London, SE5 8QY.