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What To Do Before Buying A Property At Auction

auction house

In an Auction room as soon as the gavel falls, you are legally bound to purchase the property.

For that reason, to avoid the potential loss of your deposit and being hit with hefty fees, it is important that you are prepared prior to attending an auction.

Typically the time scale for completion is 20 working days, so it is important that all parties involved move swiftly to achieve this.

What can you do before buying a property at auction to reduce the risk of the transaction falling through?

It’s important that you speak with an experienced property finance adviser to explore the potential financing options available to you for buying at auction.

As you will need to complete within the 20 working day period, it’s imperative that you obtain an Agreement in Principle (AIP) from a lender confirming they can provide the funds to secure the auction property.

It is also recommended to get a structural survey completed on the property.

This structural survey will focus on the structural integrity of the property and will highlight any potential issues or concerns.

The result of this survey will then determine whether the property is structurally sound.

If there are potential structural issues then these will be highlighted along with recommended repairs.

Depending on the scale and cost of these repairs would then determine which lenders could consider this property.

Alongside this, we would advise speaking with a solicitor who thoroughly understands the buying a property at auction process, as problems with the legal pack for the property are typically the reason why auction purchases fall through.

What are a solicitor’s recommendations prior to buying a property at auction?

We spoke with Tanya Warnes, who heads up the auction team at Attwells’ solicitors. Attwells are experts in property law and have a specialist department solely focusing on auction purchases.

Prior to an auction, Attwells recommend that you get the legal pack for the property reviewed by a solicitor experienced in auction purchases. The benefit of this, is they know exactly what to look for and what potential things could cause issues for a lender and their security; such issues that are highlighted can be checked off with lenders prior to bidding.

By obtaining this upfront review of the legal pack, you can attend the auction with the assurance that the property would be acceptable to a lender. While there is a fee for reviewing the legal pack, it is small compared to the potential loss of deposit and hefty fees you would be faced with should the transaction fall through due to an issue within the legal pack.

If you are successful with your bid at auction and proceed with Attwells as your conveyancer, then the fee paid for the legal pack review is deducted from the total conveyancing cost.

What other services do Attwells offer?

Besides auction purchases, Atwells offer all forms of property conveyancing from company buy-to-lets to buying your first home. They also offer other aspects of legal advice such as personal and employment law.

How can I contact Attwells to find out more?

If you are thinking about attending an auction and wish to seek further advice, you can contact Tanya Warnes by calling 01473 229 200 or emailing tanya.warnes@attwells.com. Alternatively, you can find out more by visiting Attwells Solicitors – Law Firm – Local Solicitors.

How can Advocate Finance help?

Advocate Finance are experts in arranging fast and dependable funding solutions for buying a property at auction.

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