Anybody any experience of sealed tender, please.l

mumtoomany

Hi all, hope someone can help us.

We viewed a dream house yesterday. It is for sale by sealed tender, and we have no idea about this type of sale. If we get it we would rent our present house out on a buy to let mortgage, using the funds to purchase and repair (a lot of repair!) the new one.

It is for sale as offers over £150,000, but would be worth more than double that if fixed. Does anyone know how much, as a percentage of this price, it would be likely to sell for?

Any comments would be appreciated.

Thanks, Mumtoomany.

Doozergirl

You have to decide what it's worth to you! Even if I knew the exact house, I couldn't really tell you how much to pay. Needless to say, if it's worth double eventually what it is now, it's going to take a small fortune to fix it and you need to brace yourselves.

As for your tender, you write a letter, with your offer, let them know how you will be funding it, let them know you can provide proof for that asap. Whether or not your offer is subject to survey, details of your solicitor, how quickly you'd like to exchange etc. Be as comprehensive as possible. And make your offer a slightly random number so it doesn't match anyone elses. ie. if you were thinking around £150k, then you could offer £151,667 in order to trump anyone else offering around that amount - like people do on eBay!

bris

It sounds like there is a lot of interest if it has went to a closing date. If it really is worth double when fixed then no doubt a lot of other people will know it. If you want it you will have to put in as much as you can afford. It is unlikely to sell for around the £150k mark and you could be looking at 200k + for it, depending of course on the condition of it. Don't forget a low price of £150k is to generate interest and not necesseraly a price guide.

missile

A good solicitor will be better able to advise you

kingstreet

Is this a Scottish property?

mumtoomany

Thanks for all the replies so far. Yes there is a lot of work! Water has come through the roof in 4 or 5 places, the wiring is as old as it can be, bare brick walls with fungi growing from them in the kitchen, holes in floors, etc. But we have done the same in the other houses we have owned. At least this one we will be moving in (hopefully) in summer. Winter in big, old, Victorian houses, with no heating at all is not fun. Especially with small children. It is in Cheshire, although I believe this is a more common practice in Scotland. I intend to make an appointment with a solicitor tomorrow. Will let you all know how we get on. Thanks, Mumtoomany.

Doozergirl

Watch out for dry and wet rot then! We removed every last bit of wood from this house. I'd be surprised if you can move into a house that's gone as far as rot in the summer?!

H came across the man that was bidding against us at the auction (we paid 60% over the guide but the house is worth 3x). He wanted to live here and fix it up. That would have been impossible. Unless he particularly liked living with rats and having no facilities.

mumtoomany

Thanks Doozergirl, this one is habitable, just! The last owner lived there till he died six months ago. He was 100 years old by then. No rats as far as I can see, but will certainly get a full survey done before signing anything. Mumtoomany.