Auction properties

centennial

Hello,
I am first time buyer with permanent annual salary of £67k(joint) and with decent deposit of 32k (was saving from years). Recently while searching through Google I have found one property which is going in the auction on 26th oct. I have approached one firm known as CHOICE and they said they are kind of agent who searches the auction properties and pass these to their customers (Paid service). I am planning to take their membership but one thing is coming in my head so extending my hands to get some help from you guys.
I understand I will need to pay 10% deposit money and 90% within 28 days of exchange of contract. I understand survey will be required to be done and if anything goes wrong then I will lose my survey fees and 10% deposit (highly unlikely though)

Could someone please advise the best practice ?

many thanks,
Sandy
[EMAIL="sandysomu@gmail.com"][/EMAIL]

poppysarah

Speak to a solicitor who deals in auction properties.

A membership scheme to get info on what? Auctions? Auctions are publicly listed on the internet and usually included in rightmove.

Have you a mortgage approved?

GDB2222

No, no, no Sandy! When you win the auction, you are committed to buying. You have to pay 100% of the price, even if you have a bad survey. You don't just lose your deposit. The vendors can come after you for every penny you have and make you bankrupt.

So, the only way to do this is to have a survey done before you bid. Also, you need your mortgage lined up and your solicitor needs to have done all the legal work. Of course, this costs £££s and there is no guarantee that you will be the highest bidder.

Unless you have already lined this all up, you should forget the auction on 26th.

GDB2222

Sorry, just to clarify - you have to pay 10% in ready funds on the day of the auction and the other 90% within 28 days (usually). But you can't get out of paying the 90%, even if you can't get a mortgage because the survey is bad.

G_M

When the hammer comes down, the property is yours. No ifs no buts. You pay 10% straight away and the rest (usually) 28 days later. No way to back out.

Not got the cash or mortgage 28 days later? tough. You'll be sued and made bankrupt.

Trollfever

You will need to find an auction friendly solicitor, surveyor and lender.


P.S. I will search all the auctions for you for a retainer of £25 a day. (Cash only)

Fire_Fox

I'll pretend to search all the auctions for £15 a day (cash only).

theGrinch

choices have a mixed reputation according to some of the post I have previous read on singingpig

G_M

I won't even pretend to search the auctions for £5 a day.

centennial

Thanks everyone whoever has responded. Anyways During my investigation I found out that the seller was a cash buyer of the property which he bought couple of months back (£77500) and now asking £80k plus. That property was commercial before which we translated into residential so refinancing was very difficult and worst part was that his tenants were not paying rent to him. (all information I covered by knocking on different doors and through EA who actually sold that property to him).

anyways chapter closed, thanks god, I escaped throwing couple of thousands away.

regards,

Entertainer

There is nothing to stop you making an offer for the property before auction. Quite a few lots never make it to auction this way.