Mortgage for Property Auction?
Discussion
usually what I do is sign the deal up and get a survey done then it's a 'simple' matter of winning the auction and getting the offer out within 28 days.
sometimes we go to the effort of getting the offer ready beforehand but as the price at auction is flexible this means if it goes for anything else than exactly what you put on the offer the offer will have to be reissued anyway so you may as well wait until the price has been agreed. btw, don't skimp on the survey - go for the most thorough if you're at all unsure about the condition of the property (which is mostly the case!)
good luck!
sometimes we go to the effort of getting the offer ready beforehand but as the price at auction is flexible this means if it goes for anything else than exactly what you put on the offer the offer will have to be reissued anyway so you may as well wait until the price has been agreed. btw, don't skimp on the survey - go for the most thorough if you're at all unsure about the condition of the property (which is mostly the case!)
good luck!
schueymcfee said:
Just what condition does the house need to be in to qualify for a mortgage? Kitchen and bathroom along with gas/electric/water all running?
it depends on the proportion you plan to borrow against the value of the house (the LTV) but generally speaking it must be 'habitable' otherwise you will get restictions placed upon the offer by the mortgage lender
Right you’ve had the advice of an IFA now here’s the solicitors bit.
If you see a property you would like to bid on make sure you get a contract pack sent to your solicitor a week or two BEFORE the auction and agree on a fee with them to look through it – I’d usually charge 1-1 ½ hrs to do that and call you to let you know what you might be in for. That way you will know that you haven’t just contracted to buy a property with a dodgy title, etc.
And just to warn you the factories will not touch something like this. You need a decent solicitor/Legal exec.
There are lots of other little pearls of wisdom they may be able to give you before bidding. As they always say go to at least one other auction before just to suss out how it all goes. If you are really serious about a property but don’t have time to do the above pay the money and get your solicitor to attend the auction with you.
Mus lern to spul
>> Edited by Rude-boy on Monday 18th July 09:58
If you see a property you would like to bid on make sure you get a contract pack sent to your solicitor a week or two BEFORE the auction and agree on a fee with them to look through it – I’d usually charge 1-1 ½ hrs to do that and call you to let you know what you might be in for. That way you will know that you haven’t just contracted to buy a property with a dodgy title, etc.
And just to warn you the factories will not touch something like this. You need a decent solicitor/Legal exec.
There are lots of other little pearls of wisdom they may be able to give you before bidding. As they always say go to at least one other auction before just to suss out how it all goes. If you are really serious about a property but don’t have time to do the above pay the money and get your solicitor to attend the auction with you.
Mus lern to spul
>> Edited by Rude-boy on Monday 18th July 09:58
schueymcfee said:
Thank Rude-Boy will get that sorted after I've made an initial viewing.
Anybody have any experience of making an offer before the start of the auction? I know the agent isn't really going to like that but if the offer was realistic etc?
All depends how the Estate Agent is being paid TBH... if its an in-house auction with a large corporate company... chances are they will not entertain offers prior to auction... as they are there to promote their auction division as well. Sometimes the Agent that does this will have egg on their face if the property does not reach reserve... at this stage you may be able to sniff out a bargain.
If you are interested in one property in the auction. Then do as MiniMax and RudeBoy say... if your just speculating and don't care what type of property you make money with... have a sniff round some of the lots that don't sell.
Often the only reason a property doesn't reach reserve is because only one person in the room is interested (they won't bid against themselves).
Approaching the gavel after the auction may produce a result here.
Edited to say: Often an offer prior to the auction will only re-assure the vendor of the interest in his property... obviously being a greedy sod he will put it to auction anyway, as with interest it could shoot over reserve. Hope this helps
>> Edited by KingRichard on Monday 18th July 17:40
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