Buying At Auction

(18 Posts)
pinkpepperclove Tue 15-Sep-20 13:00:32

Any experiences here of people buying at auction with a mortgage?

Particularity through Savills?

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pinkpepperclove Thu 17-Sep-20 16:31:47

BUMP! Can anyone see this!?

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Sitdowncupoftea Thu 17-Sep-20 16:51:41

My brother has a property rental portfolio he buys at auction. He has bought some in lovely areas just filthy inside and needing work as they have been repossessions. Never any major issues just new boilers , Windows and decor.

pinkpepperclove Thu 17-Sep-20 17:21:17

Does he buy with a bridging loan/mortgage?! The time frames in this market feel super unobtainable.

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YellowNotRed Thu 17-Sep-20 17:59:21

Most properties that go to auction are unmortgageable, I thought? Could well be wrong!

Viviennemary Thu 17-Sep-20 18:17:44

I'd assume most properties that go to auction wouldn't qualify for a standard mortgage.

Jujuball Thu 17-Sep-20 18:52:59

I'm a conveyancing solicitor and have just had instructions on a purchase where the auction contract requires completion in 3 weeks... but my client is getting a mortgage shock I honestly don't know if she'll pull it off in time.

Timescales for getting offers from most lenders at the moment are not compatible with the timescales required for most auction properties (which will be set out in the legal pack). Please make sure a solicitor checks the legal pack for you too, there can be some real nasties hidden in there.

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Puffa1Puffa2 Fri 18-Sep-20 12:58:36

I've bought at auction

Had to pay the full amount within 28 days plus fee

Property had been on market for over a year

No problems

Puffa1Puffa2 Fri 18-Sep-20 13:01:01

Yes you can get a mortgage on some auction properties

They should say in the description if the property is of " non standard construction" or cash buyers only

combatbarbie Fri 18-Sep-20 13:50:36

I done this, but not for property portfolio. It is our forever home.... I had only seen standard pics. Which previous owner had made to look good cosmetically. The reality is a refurb. We needed to complete within 6 weeks. We could have done it in 4 though, the bank were very reactive.

I just fell in love with the house and the idea of our rural forever home... Didn't read small print that 10% was required on successful bid which was a tad stressful but we scraped it together. Was I mad.... YES! Do I regret it No!!!

Puffa1Puffa2 Fri 18-Sep-20 16:15:02

I currently live in the property that I bought

Gradually renovating over time

It is liveable, but not modern

Ellmau Fri 18-Sep-20 17:45:19

I'm a conveyancing solicitor and have just had instructions on a purchase where the auction contract requires completion in 3 weeks... but my client is getting a mortgage shock I honestly don't know if she'll pull it off in time.

What happens if she can't? I thought buying at auction you were legally obliged to pay up.

Puffa1Puffa2 Fri 18-Sep-20 17:51:57

There may be a financial penalty if you don't pay on time
Check small print of auction

Bouncycastle12 Fri 18-Sep-20 19:39:57

You have to hand over a chunk of your bid immediately (usually 10%) and if you don’t complete within the specific time, you lose it. Assuming you’ll get a mortgage in that timeframe is optimistic/madness with current delays.

FAQs Fri 18-Sep-20 19:43:13

Is it a traditional or modern auction?

It’s a myth auction houses are not mortgageable only in some cases but that would apply to the property however it was sold.

Non mortgageable properties tend to state cash buyer only.

pinkpepperclove Mon 21-Sep-20 14:54:58

It's mortgage-able, bridging loan is just a time saver to get the deal done.

The auctioneers have advised that the time frame isn't a massive issue providing you are moving forward... they enforce it for people with TOO much money that will happily loose £50k because they have changed their minds.

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pinkpepperclove Mon 21-Sep-20 14:55:40

combatbarbie

I done this, but not for property portfolio. It is our forever home.... I had only seen standard pics. Which previous owner had made to look good cosmetically. The reality is a refurb. We needed to complete within 6 weeks. We could have done it in 4 though, the bank were very reactive.

I just fell in love with the house and the idea of our rural forever home... Didn't read small print that 10% was required on successful bid which was a tad stressful but we scraped it together. Was I mad.... YES! Do I regret it No!!!

I have all our duck in a row... its just this bridging loan! They are so much money!

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pinkpepperclove Mon 21-Sep-20 15:01:17

Jujuball

I'm a conveyancing solicitor and have just had instructions on a purchase where the auction contract requires completion in 3 weeks... but my client is getting a mortgage shock I honestly don't know if she'll pull it off in time.

Timescales for getting offers from most lenders at the moment are not compatible with the timescales required for most auction properties (which will be set out in the legal pack). Please make sure a solicitor checks the legal pack for you too, there can be some real nasties hidden in there.

Thank you! Yes we have done this and she spotted a document missing.. the auction house had no idea which shows how many don't bother looking at small print!

Our mortgage adviser said the same.. 3 weeks just to get application acknowledged and then valuation etc... no chance turning around in 28 days hence the bridging loan.

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