Purchasing at an auction help

jw1_2

hi, if you have bought at auction and paid a 10% deposit on the day, can the solicitor use this 10% deposit when completing a mtg?

payless

If I raed the question right- yes it goes towards your overall deposit - obviously subject to the lender's valuation..

ie if buy at £100K , and they value it at only £90K , then its gone in the shortfall , as the lender wants whatever % deposit against their valuation.

jw1_2

so if for example purchase is 89k, 10% deposit paid on day.
Lender requires 10% for mtg, solicitor takes 10% from auctioneer?.

payless

your solicitor will not actually take the money from auctioneer , but it will have been lodged with vendors solicitors as part payment ( ie the normal 10% on exchange) , hence if lender is willing to do 90% , and values up to full amount all is sweet ( or at least it was in the cases I've processed!- is your your solicitor saying different)

miss_undastood

Do you have to pay commission to the auction house? they wont do it for nothing.....
Read the T&C's that the auction house provide you.

Your 10% could be a deposit, or it could be the auction's commission..........