FTBs and Property going on Auction in 3 weeks!!

MrHelpful

Hello,

Sorry if this question is answered somewhere already but i've trawled through different threads for the past 2 hours and cant find the answer. So here goes with the blurb...

I and a mate both being FTB are looking to buy a property for investment. We have put in a offer of a 130k for a 2 bed flat which has an auction guide price of 125k-130k. The property is going on auction on the 18th August and we put in the offer to see if we could buy the flat before it did. We have a deposit of about 40k cash and know we can get a mortgage easily for 100k.

The estate agent today have got back to me and have said that the auctioneers rejected the offer as they beleieved there was not enough time for the surveys and enquiries required by most solicitors to take place. She said that the auctioneers may be willing to accept the offer if we were to say that we would not have a survey/enquiries done. I am clueless to what these two pieces of the jigsaw are but have been told after the call with the estate agent that the surveys have already take place as the property was going to auction. However the enquiries would be the only grey area, what is this? Should one buy a property without enquiries? The property is a 2 bed, realtively new build 2003 in Leicester City Centre. It is a repossession job and very good nick.

What should we do - go with the offer without the enquiries or just give this property a miss and maybe attend the auction itself, though its on a weekday and I work 150miles away! so would not be possible to attend.

Please advise!!

Thank You

BobProperty

I can't see you getting the mortgage without the survey and enquiries being done first, so that would stop the buy before auction. Unless the lender is willing to let you take out insurance against adverse enquiry results. What did it sell for originally and since?
Edited to answer my own question £187,000 31/1/2005 I hope some of the others in the block are 1 beds or studios judging by the prices. The only one to have changed hands since being built dropped £5k in six months, what happend there?

MrHelpful

The EA said it wouldnt be a problem getting a mortgage and she wasnt aware of insurance one could take out against adverse enquiry results, is there such a thing and if so how much would it cost, the name of the provider?

This is a 2 bed flat, with an allocated parking space less then 2 mins from the station as you state it originally sold for £187k in early 2005 which is a very high amount even for the area, I cannot dream why someone would pay that. There are at present several flats for sale in the block but this is the cheapest one and the only one going to auction.

"The only one to have changed hands since being built dropped £5k in six months, what happend there" - I am not sure what happened, plus are you saying that the block has had only one re-sale since being built, can I ask which website you used to get this info (i.e. it was a re-sale rather then a brand new build purchase)

I am not sure what to do next!!

david29dpo

put an offer in for £110,000 on a flat before auction recently. it was turned down. went to the auction and got it for 105,000!!

BobProperty

MrHelpful wrote:

The EA said it wouldnt be a problem getting a mortgage and she wasnt aware of insurance one could take out against adverse enquiry results, is there such a thing and if so how much would it cost, the name of the provider?

I find it odd that someone would lend you the money without checking that there is nothing adverse on the local search. I have heard of such insurance in the past but never used it, nor know who does it, sorry.

MrHelpful wrote:

This is a 2 bed flat, with an allocated parking space less then 2 mins from the station as you state it originally sold for £187k in early 2005 which is a very high amount even for the area, I cannot dream why someone would pay that. There are at present several flats for sale in the block but this is the cheapest one and the only one going to auction.

"The only one to have changed hands since being built dropped £5k in six months, what happend there" - I am not sure what happened, plus are you saying that the block has had only one re-sale since being built, can I ask which website you used to get this info (i.e. it was a re-sale rather then a brand new build purchase).....

I used Rightmove. I looked for 2 bed flats in LE1 (having guessed that was the postcode for central Leicester ) I then found one at the right sort of price and going into an auction on 18th August. I then used the address on the sold prices section of Rightmove and found the prices. Most were marked as New Build in 2005. The one that changed hands sold for £165k in Feb 2005 then for £160 in Oct 2005 if I remember correctly.

MrHelpful

The EA said it wouldnt be a problem re mortgage if I took out a mortgage with them EA is Halifax in this case. The search has already been completed as the property is going for auction however EA has said there is no time for enquiries!The mortgage that they offered seemed ok 4.8% tracker for 2 years with no charge for early repayments. If anyone know of enquiries insurance, please shout out details!

Solicitors I believe generally raise enquiries from what is stated in the search and in this case there is no time. What type of questions (enquiries) are raised from searches usually??

Me_Myself_2

UPDATE Please!!!!!!!!!!