What solicitor involvement do i need at a property auction ?

mikeyw

I'm attending my 1st property auction this week and am hoping to secure a purchase.

I've done plenty of work on researching / visiting the property and have arranged a deposit and funding for the purchase. I know my ceiling and budget for renovation.

The only area i'm a little unclear on still is how much involvement i need from a solicitor with an auction purchase, as i understand it they don't need to be involved on the day so just like to know what their involvement needs to be once the lot has been won.

Once i know the details i'll contact them and arrange for them to be on standby.

Thanks in advance,
Mike.

ruggedtoast

No idea I'm afraid but please do tell us about your experiences at the auction. I've always been interested in this type of buying!

Hope it all goes well and you get the house.

ILW

Have you checked the legal pack?
Best to get a solicitor to look at first, some auction properties can contain various nasties on legal side.

ERICS_MUM

Apols if some of this is not relevant to your own situation !

First of all have you read the legal pack for the desired property just in case there are some onerous terms ? There could be covenants, requirement to pay towards future costs (especially in leasehold flats), third-party rights of way, flying freehold etc. Also is the property of "standard construction" i.e. bricks and mortar.

Talking of leases, lenders won't lend unless the leasehold still has a certain no of years to run.

You might need a solicitors assistance for any of these before you bid.

I don't know the ins and outs of after the purchase but you are committed as soon as the hammer goes down and will need to have your mortgage confirmed immediately (not just In Principle) . Very often there is a stipulated amount of time by which you are required to exchange contracts, maybe just a few weeks. Obviously before this you will need the relevant searches etc.

So I think you are correct in lining up a solicitor befoe you even bid.

I'm sure that other forumites will be along shortly to confirm or otherwise what I've said and to add some meat to my bones.

Good luck, rather you than me, I dont have nerves of steel when it comes to buying property !

Linda xx

maninthestreet

Are you a cash buyer?

JQ.

Just make sure you don't overpay. Sounds like you've done plenty of work on this particular house - it only takes another person in the room to have done the same and with a rush of blood the price goes through the roof. Have a maximum price firmly in your head and stick to it. be prepared to walk away.

I would echo the comments above - read the legal pack and if you're not 100% on something get it checked out. Lots of people assume properties are auctioned due to physical defects - that's not always the case and Title defects can have a far bigger impact on price and mortgageability.

mikeyw

Finance raised on my current property so no concerns on that front - my dad in an architect so happy for him to confirm all is well on the legal pack before getting the solicitors involved. Really my inquiry was to gauge the minimum involvement i have to use solicitors for here.

Thanks all for your advice - much appreciated.

PasturesNew

You will need to have found a solicitor and spoken to them - so they know that you're going to auction. Depending on what the legal pack says they might have to complete in 14-28 days so need to be in a position to achieve this. You would need to know what they need from you to get started, maybe completing some forms/ID at their office prior to auction.

As for the legal pack, it can contain stuff like: short leases, you are not allowed to use the house to live in, you have to renovate it within X months, you have to complete in 14 days, you will take on an unknown debt of the vendor (a sum they won't tell you)... all sorts can and do hide in the legal pack.

G_M

You need the solicitor's involvement BEFORE the auction.

Once you have bid, it is too late to back out if there is a legal problem, a hidden covenant, an ownership issue, a defective Title.

You say you " have arranged a deposit and funding for the purchase" - again, this must be unconditional. A 'Mortgage in Principle' is not enough. You need a FIRM mortgage offer before you bid.

Again, it is no good the mortgage lender saying 'yes your income is enough for £XK'. You bid and win. Then lender sends surveyor round and Values the property at less and reduces their mortgage offer, or worse refuses a mortgage on that property altogether....

ILW

mikeyw wrote: »

Finance raised on my current property so no concerns on that front - my dad in an architect so happy for him to confirm all is well on the legal pack before getting the solicitors involved. Really my inquiry was to gauge the minimum involvement i have to use solicitors for here.

Thanks all for your advice - much appreciated.

Good starting to point to find out why the property has gone to auction.

mikeyw

maninthestreet wrote: »

Are you a cash buyer?

Part cash / part mortgage - presume i have to have a solicitor for the mortage side of things even though i'm borrowing against my current property