Auction - must exchange within 28 days

cs0rpc

Kinda too late now, given the auction is tonight. Is it even possible to apply for a mortgage before a price has been agreed?

cs0rpc

Incidentally, I have had an extensive survey completed and it highlighted following which could be of interest to mortgage valuation:

* repointing
* windows
* porches
* front and back doors
* rewiring
* damp ingress
* lead flashings
* damp proofing


Not sure if mortgage company would withhold all of these funds, but it could be around £25ks worth if they did.

SmlSave

You basically might be able to get your searches and mortgage offer within the 28 days but do you actually have the funds to pay the penalty if you can't?

If the honest answer is no then you might be better to wait.

I'm trusting that you have a good mortgage broker who will push an application through quickly.

theartfullodger

With auctions the only safe position is that you can buy for cash.

As long as you can buy for cash then you have then option of also, later, arranging a mortgage....

That's what I did (& I'd not even seen onside the place I bought before bidding: Children, do not do this......)

eddddy

solchain wrote: »

My memory isnt the best, but I watched a program on TV years ago where a chap bought a house at auction, he didnt have his mortgage ready so didnt complete within the 28 days, it cost him thousands in the end (I think 20k), to the point that the family that had originally put the house up for auction no longer needed to sell it because the money they got from him covered what they needed.

That would have been a conventional auction. Exchange of contracts happens when the hammer falls.

If you don't complete, you are in breach of contract, and you are liable for all the seller's consequential losses - in theory, that's an unlimited amount.



The OP is taking about a "modern auction" or "conditional auction". Typically, in this case, when the hammer falls you are committed to paying a reservation fee.

If you don't exchange contracts within 28 days, you lose your reservation fee - but you are not in breach of any contract.

(But obviously, the OP should check that applies to the specific auction he has in mind.)

agentk

theartfullodger wrote: »

With auctions the only safe position is that you can buy for cash.

As long as you can buy for cash then you have then option of also, later, arranging a mortgage....

That's what I did (& I'd not even seen onside the place I bought before bidding: Children, do not do this......)

Me too i had not stepped in to the county it was in (internet):eek: 4 years ago and still the building work isnt finished.

All kinds written into legal pack.