Remember – at an auction house – when the hammer falls, the bidder is contractually committed to buy. If you later on change your mind and decide not to buy the property, you will lose the deposit paid and will also liable to the seller for any damages.
As with all property purchase, buying at an auction also requires careful planning and attention to detail and also an advisor that can work at speed. If you have expressed an interest in a property at an auction then you can usually obtain a legal pack to read from the auctioneers. It is important that you understand as much information as possible and carry out as much groundwork about the property beforehand in order to be aware of the legal title you are buying and to know whether there are any restrictions placed upon the title of the property and also whether there are any potential implications in relation the value of the property. It will be advisable to have property searches carried out as these will reveal information about the property, for example whether there are any planning applications or permissions and information about the surrounding areas. This will allow you to make an informed decision as to whether or not you wish to proceed with the property purchase at auction. This will also avoid you committing yourself to unreasonable legal obligations.
If you are successful at auction, you will need to pay a 10% deposit on exchange of contracts, when the hammer falls. A completion date is also set at this time and this is usually 28 days later. If you are buying with the assistance of a Mortgage (a loan from a bank, building society or other financial institution) then you should obtain advice from your lender or mortgage broker as to the best mortgage for your circumstances.
We are committed to do everything possible to minimise the stress and anxiety and to protect your best interests throughout the transaction. You will be allocated your own individual solicitor or case handler and supervising conveyancer responsible for progressing your purchase as quickly as possible and proactively keeping you advised of progress at all times.
We deal with all types of residential and commercial property purchases including freeholds and leaseholds. We do not provide financial advice or make recommendations in relation to mortgages. You should give your lender or mortgage broker our details so that the Mortgage Instructions are sent to us.
Mortgage Instructions are details sent to your Solicitor as to how much your mortgage lender will lend, who they will lend it to, how the money is to be repaid and over what period. Additional charges may be added to your loan for Surveyors Fees (Survey: your mortgage lender will require that their Surveyor visit the property in order to ascertain that the property value exceeds the amount to be lent and the state and condition of the property and to prepare a Report), Arrangement Fees (the cost of arranging your mortgage) and other sundries, for example Bank Charges.
We will check the legal documents to ensure that everything is in order and also that all necessary property searches have been done. We will let you have our report on the legal documents relating to the property. You can then bid for the property reassured that everything is in order. If, however, there are any legal problems, we will advise you accordingly and you can then decide whether or not to bid for the property.
Give us a call if you want to get a professional and friendly service;
For a free, no obligation conveyancing quote and general help and advice with your house sale or purchase, please ring us today on 0208 574 0666.