Auction Dream House

Tra300_2

We have found our dream house that goes to Auction in a week - we currently own (mortgaged) a house with about £50000 equity - that is on the market howvever is not likely to be sold and settled by the time that the auction comes round. We have been approved the mortage for the next property (which will cover the one we like and give us more than enough to do the work required) What options should we be looking at? The house due to go to auction is a real fixer-upper and is not likely that we will be able to live in and renovate at the same time as we have a young child?! Suggestion on where we might live would alos be useful - stay where we are, buy a caravan for the garedn or rent? Please help the clock is ticking....

dander

Bear in mind when you buy at auction you have to pay the 10% deposit on the day of the auction and complete the purchase within 28 days. If you don't complete you lose the 10%.

I should imagine (unless you've got a lot of money stashed away somewhere) your only option with timescales like this would be bridging finance, which could be expensive - and you would almost certainly spend some time paying out on two mortgages.

If you're serious about buying this 'fixer-upper' get your surveyor in there quick. You can't back out if you make a successful bid - so you'll want to be sure that you know exactly what you're getting in to.

nmiah786

Tra300 wrote:

We have found our dream house that goes to Auction in a week - we currently own (mortgaged) a house with about £50000 equity - that is on the market howvever is not likely to be sold and settled by the time that the auction comes round. We have been approved the mortage for the next property (which will cover the one we like and give us more than enough to do the work required) What options should we be looking at? The house due to go to auction is a real fixer-upper and is not likely that we will be able to live in and renovate at the same time as we have a young child?! Suggestion on where we might live would alos be useful - stay where we are, buy a caravan for the garedn or rent? Please help the clock is ticking....

If you have a mortgage offer in place, why dont you contact the Auctioneers and put a offer forward to them. You never know the vendor might be willing to accept it before the auction date. If they refuse you can always up the offer and if that fails, go and bid at the auction.

Might be worth bearing in mind that auctions have quite quick turnarounds. So you will need to factor in having to pay both mortgages for a while. Also, you need to ascertain whether your lender would be willing to lend on a auction property.

Contact the auctioneers and see what they say.

BoL

crisp

usually if you make an offer prior to auction or indeed up to 28 days post auction you are still bound by the auction terms.

Debt_Free_Chick

Re the point about the surveyor .... it sounds like you will need a full structural survey and you want the report before the auction. Otherwise, you really don't know what you're buying.

Re living in a caravan .... speak to the local Planning Officer ASAP as you will need planning permission to site the caravan. You need to know whether you will be likely to get it.

HTH

charlies_mum

Hi,

I don't want to put a dampener on things, but I have been trying to buy a property at auction for six months, and find that typically they are going for up to 50% more than the auction guide !

It might be worth a phone call to the auctioneers to see whether they would accept an offer prior to auction (subject to survey)

Good luck,

Tra300_2

I have done my homework and the had a surveyor look at it (hence the need for the caravan, or somewhere else to live - there is some building work required) and the searches will be complete by the end of today. I had spoken to the local planning officer and they have no problem with a caravan (as long as it is for a preagreed timescale).

zag2me

charlies_mum wrote:

Hi,

I don't want to put a dampener on things, but I have been trying to buy a property at auction for six months, and find that typically they are going for up to 50% more than the auction guide !

Thats very true, the guide price is just to get people through the door into the auction.