Buying property from auction is an exhilarating yet nerve-racking process. There are most definitely bargains to be had but preparation is key to making sure that what you get is what you hoped for!
To buy at an auction you need to first register, provide any documentation required and, in the case of online auction, register your deposit for the lot(s) you wish to bid on. Then with a typical auction contract, when the hammer falls (or the timer counts down to zero), if you are the successful bidder then you exchange with a 10% deposit, pay any additional “buyer’s premium” and/or auction fees and exchange contracts.
At this point the clock starts ticking and with a standard auction contract you then typically have 20 working days until completion. If you are unable to complete by this time, there is usually a notice period of 10 working days during which you will likely pay interest and fees, but you have additional time to arrange the funds.
With any property purchase research is important, but when buying at auction, the more you put in before the sale starts, the best chance you have of avoiding nasty surprises if you’re successful. Ask a solicitor to review the legal pack and take a builder with you to viewings if you plan to carry out works on the property and engage a specialist broker to assist with the finance. Equally importantly if you require finance, call or email us so we can appraise the property for you and suggest a tailored approach to give you the most competitive and straight-forward mortgage or loan within the timescales available.
The Team at Aspire Property Finance have over 15 years of experience in specialist Auction Finance, please get in touch to see how we can work with you to achieve your property investment goals:
01225 800849