Buying at auction

This is a bit risky if you’ve got to get finance as you have to complete to a deadline and if the bank refuses to lend you the money then you’d lose your deposit.

For most auctions you need to put down a deposit of 10%. You pay 10% of your maximum bid (with a minimum of £2000). Completion takes place usually within 28 days from the exchange which is deemed to be when the hammer falls. You need to check what the company accepts as some won’t take cheques, and others have a surcharge for using a credit card.

You should view the property and arrange any surveyors visit before hand. Use a solicitor who is used to doing auction propertys and ask them to look at the legal pack before you bid!
If you don’t have a survey, and the property turns out to have problems then you have no comeback once the hammer falls!

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