Buying at Auction

Indecisionismymiddlename

Bit worried about a couple of things:

1. What if the mortgage company don't value it to what I've paid? I know the answer is that I'll have to come up with the shortfall but that's a worry as you never know just how much that could be!
2. It has a CLEUD preventing me from being subject to enforcement over the agricultural tie. I understand this but the I'm a planner. what if the mortgage co. don't fancy it. do you reckon it would still devalue the property?

I know the first one is just a risk that you have to take but the second one is a real worry. can anyone shed any light?

many thanks

Richard_Webster

It has a CLEUD preventing me from being subject to enforcement over the agricultural tie. I understand this but the I'm a planner. what if the mortgage co. don't fancy it. do you reckon it would still devalue the property?

The mortgage company wouldn't have any particular reason to know about the planning condition and if there is a CLEUD then your solicitor has no reason to tell them because he should be satisfied as to the Planning position - unless he doesn't know his planning law I don't know how many of them do - but I am at an advantage having previously worked for a LA.

Mortgage companies rely on solicitors to check all this stuff and jump down our throats if they lose out on a repossession sale and find something where we have gone wrong.

G_M

1. When buying at auction you need to have all your finance in place before you bid. If you are relying on a mortgage for funds, get them confirmed in advance. Of course, if you have other resources available and the mortgage is just one funding option, then you can wait till you've won the property to decide on the best way to fund it.