Auction - can this work? How?

[LoonyIdea]

Here’s the bare bones:

I’ve seen a house I love, and it’s up for auction on July 21st with an auction house.

It’s a G2 listed house with some land.

It was previously on with A normal agent and an offer was accepted at £500k but it didn’t complete as the buyer’s solicitor wasn’t happy with a building certificate related to the underpinning. The old agent revealed that they believe the reserve to be £500k.

It is owned by MAG (Manchester Airport Group) who bought it as a compulsory purchase as a part of the A development, which never happened. They sold a lot of their portfolio but kept some with land, and this has been rented since.

My position:

I bought my husband out of my house as a part of our divorce and I now have a mortgage of £195k. My house is very saleable, on a popular estate and worth about £700 on a good day, £670 on a bad one. (Based on 3 local agents)

It was recently valued at £631 for the purposes of the remortgage as that was the figure I’d agreed with my husband some time ago.

I can put my hand on about £20k cash and everything else is in pension and in this house.

I earn £40k, PAYE.

And I really want to buy this house! How can I make it happen?

I had thought I might ask the seller to accept an offer prior to auction but if it’s ordinary auction terms then that doesn’t help me - I need more time, as it’s a cash flow issue.

I’m willing to pay a bit more for it and would go to £520 which I don’t think they’ll get at auction. The guide price is £475.

The house is uniquely unattractive to other buyers - it’s hard up against the motorway the plot is a Scheduled Ancient Monument, and the majority of the land at the back has no vehicular access at all. You can get a mower or a horse in and that’s it. And the house is a (properly underpinned) wreck. I however, love it and it would suit me perfectly.

im talking to some “we buy any house” sites and they’re talking about 75-90% of market value and could complete within a few weeks.

How should I proceed? Is this even possible?

If you can’t arrange things to buy it at the auction… it may not meet its reserve and you could get a chance at it afterwards, for the reserve price through the original estate agent. This is how I got the house I’m currently sitting in. Good luck

The legal pack hasn’t been done yet, it’s still with the agent/vendor.
I would worry about this. If it had already been going through a sale, but the purchaser dropped out, surely the legal pack should be ready to go?

bear in mind that the late release of the auction pack might be to drum up viewings before the conditions put anyone off
I agree with this. Also, by leaving it late, a potential purchaser might not have time to go through it with a fine toothcomb.

I’m a total novice (just bought my first house) and I’m rooting for you, Op 😬

We were complete tourists at a G2 listed place…the upstairs was liveable but the kitchen was tucked under the stairs and the (enormous) cellar/basement was horrific… like something out of a torture porn movie. However, it was on for £190k. Another £100k to turn that basement into a kitchen/living area opening into the garden would have put the costs up to something like the going rate for a three-bed in the area. Another couple of quid for permissions for an additional velux too, maybe. We did not have the money or the vision but someone did, and we can see work has started when we drive past. Good for them 😎

This...

Well, today’s update.

So today was the interior viewing with the agent. And it’s knackered. The front wall of the oldest part of the house is no longer attached to the floor. And more worryingly, I spotted that the air bricks on the more modern bit had been sprayed over with this rubbery render. Inside the house there were black spots of mould even on the bits that had been newly painted, which I think are a consequence of the house not being able to breathe.

The more esoteric/tarot-curious types will enjoy this picture - this is what I found when I pulled back the carpet in the lounge.

So, I’ve decided that:

1. not bidding at auction
2. May approach vendor if it doesn’t sell
3. Not touching it without a survey

Sounds wise!

I know you've fallen in love with this house, but have you looked at other listed buildings for sale?

There are plenty that are already renovated (and which will also still probably be a money pit!), and in budget, and it would give you time to realise the full price for your current home.

It’s got subsidence I assume and is coming apart and with damp.. Hence why it’s at auction, Can we have a link now , I can’t see why not?

Have you considered doing the lottery? I think a very big win might be needed….🤣

seconded we need a link now!! 😊 thank you.

I’ll post a link once I’ve heard if they accept my previous offer or not. I’d still proceed if they take my offer - meaning that I could sell at full market value and survey it.

Yes but there’s nothing with the earthworks that this has and that’s the bit I really like. Loads of land!

Oh the suspense is killing me and I'm trying to find it. Is it the one in a plot with several old buildings in a sort of horseshoe shape surrounded by trees and land? (I live nowhere near you and don't have £500k if it helps!).

Nope but that sounds lovely! Have you got a link?

It was the unconventional layout that made me wonder. I'll keep trying 🤣

www.rightmove.co.uk/properties/85719573#/?channel=RES_BUY

Gosh that’s a properly peculiar layout! I know Atherton but I never knew that was there!

Yes but there’s nothing with the earthworks that this has and that’s the bit I really like.

Yes, you're right, certainly not for that price. I actually think you'd need a huge amount of money to renovate it, and a larger income just to run it.

It might not sell, because of its position and associated noise, which would put a lot of people off. If they don't get any bids, watch out you don't end up buying it and regretting it!

I had no idea this building was within walking distance of our old house. It looks even bigger and more imposing in real life but somehow it stays hidden until you're practically underneath it.

www.rightmove.co.uk/properties/109703537

Exceptionally wise. I have a good feeling about you getting it though. Just at a fair price and going into it with your eyes open.

You are very lucky it’s Grade II listed as developers won’t touch it with barge pole as they can’t knock it down and there won’t be enough profit in it to renovate it. Regular buyers will be put off by the obvious structural issues.

Funny you should say about the mould……….

@LoonyIdea i think I’ve stumbled on the house as it was in the auction catalogue I normally go through ( I won’t post any identifying details) I can see why you’d want it. 😍 I think possibly an issue you’ll have is cash-rich developers taking a punt at auction based upon the future valuation on zoopla probably fuelled by a previous sale price (presumably before the subsidence).

I agree with@BookwormButNoTime hopefully the obvious structural issues combined with the listed status will put people off.

When you hopefully are at survey stage then make sure you get someone who is familiar with older listed buildings and their construction otherwise you will end up with completely useless advice about what you can and can't do to fix it.

Also I would recommend reading a load of the period property forum www.periodproperty.co.uk/forum/index.php as you might be able to work out what would need to be done to rectify some of the issues yourself.

The render and blocked bricks and damp are probably relatively easily fixable. The subsidence is more worrying but might not be as bad as you think.

Any update @LoonyIdea ?

No update beyond the decision I made not to bid. They STILL haven’t released the legal pack. <chinny reckon>

I have nothing constructive to add but am v impressed by you love for the house. WHEN you end up getting it (there's my blessing!) can i come visit????

This was on escape to the country with the African couple, think they may have bought it.