Bought an house at auction and now regret it

Comms69

FreeBear wrote: »

https://forums.moneysavingexpert.com/member.php?u=2661315
https://forums.moneysavingexpert.com/member.php?u=2685322
https://forums.landlordzone.co.uk/member/80350-samthefootball
https://www.urban75.net/forums/threads/how-to-find-a-job.354873/


If I'm mistaken, I'll apologise, but the user name is way too similar.

Good shout I remember this chap.


I even tried to help with the last thread.


Something about the brother having a job and a girlfriend.


TBH I'd want to warn the chap to watch his back, the person was unstable

ACG

I am no legal expert but my understanding is when the hammer comes down, you are legally bound to complete or lose your deposit.

What you might need to do is to make the best of a bad situation and try to get one or 2 of the flats to a position where you can mortgage them as a BTL and then try to flog them off individually if nothing else, just to get your money back or you could give notice to the tenants but that will be 2 months before they leave, assuming they do leave.

Comms69

elsien wrote: »

Freebear, I think you should remove those links.
The poster in question is clearly vulnerable, has had his posts on here removed for a reason and I don't think it's fair on him to drag them up again from somewhere else.

Not sure vulnerable is the right term

Comms69

Googling samthefootball is an excellent way to waste a few hours just FYI

Samfootball

I've posted on this forum for the first time, so not used this before. I'm not sure if there was someone else with a similar username but it wasn't me. Thank for those who tried to help with the kind words. It's one massive mistake form my end and I've regretted it hugely and I think I'll just have to face the consequences and end up loosing the deposit..

[Deleted User]

Its obviously a horrible situation but its something to learn from. Not a lot of consolation right now but I know with time you will recover.

Samfootball

.. unless there's an experienced propery developer on here willing to purchase the property. It's a very nice and big house in the North West and would have loved it as my first buy until realising I couldn't get a mortgage on it. Message me if interested *** serious enquiries only***

Mr.Generous

Samfootball wrote: »

.. unless there's an experienced propery developer on here willing to purchase the property. It's a very nice and big house in the North West and would have loved it as my first buy until realising I couldn't get a mortgage on it. Message me if interested *** serious enquiries only***

If there is someone with cash to buy it and able to complete straight away they won't pay anything like the price you have agreed. Probably cheaper to walk away and give up your deposit.

45002

Samfootball wrote:

Hi,

Okay, This is a very complicated issue and would please like some advice.
So I bought a house at auction which has been converted into three flats. This was stated in the website and legal documents too. There are currently two out of three flats with tenanants living inside. I wasn't aware that this would be a huge issue with getting a mortgage aa a first time buyer. It is almost impossible to get a residential mortgage on the property because of this and I have also realised a day after the auction that there are also no building regulations in place from the previous owner when they converted the house into three separate flats making a buy to let mortgage impossible to get. The only option is a bridging mortgage which I do not want to go ahead with. The lack of this building regulation certificate was not noted anywhere in the property information form (TA6) that was in the legal pack and the question of any conversions/changed said the seller was aware of is ticked as no when clearly they should have mentioned the lack of this regulation certificate on the legal documents. Can I get a my deposit back because of this issue as I am unable to get the funds for the deposit if the bridging loan.
I have already paid nearly two thirds of my deposit (10%) on the day of the auction and cancelled the rest of the deposit after realising this issue. I have just 28days from the auction date to complete the paperwork or else risk loosing my deposit.

Is there any way of making a complaint and getting my deposit back.

Many thanks in advance

I have been extremely stressed since finding this out and very very depressed on the thought of loosing such a large amount of deposit put forward already by myself.

Samfootball wrote:

Yes, my solicitor that I provided details for on the auction day doesn't deal with with bridging loans and I do not have enough deposit to mortgage the property. Nearly all my like savings down the drain if I loose this deposit. Very sad ATM

Samfootball wrote:

TBH i did not visit the property but even if I did I wouldn't have known any different, as a first time buyer and don't know much about the legal side. It's is in a liveable condition as tenants are in their atm. Yes this was my fault for not viewing before buying which is a massive regret from my end but without the building regulation certificate I risk losing my life saving. 'm very lost

Samfootball wrote:

I've posted on this forum for the first time, so not used this before. I'm not sure if there was someone else with a similar username but it wasn't me. Thank for those who tried to help with the kind words. It's one massive mistake form my end and I've regretted it hugely and I think I'll just have to face the consequences and end up loosing the deposit..

Samfootball wrote:

.. unless there's an experienced propery developer on here willing to purchase the property. It's a very nice and big house in the North West and would have loved it as my first buy until realising I couldn't get a mortgage on it. Message me if interested *** serious enquiries only***

Samfootball.

As GM posted in # 11

When did the tenants first move in ?

AST moved in after February 1997.

Assured tenancy "secure" moved in before February 1997, No s20 issued at start of tenancy.

Regulated tenancy "protected" moved in before January 1989.

Almost impossible to obtain a mortgage with secure or protected tenants in place.






....

bxboards

tlc678910 wrote: »

Impossible if you can’t get the finance.

Tlc

Bridging loan may be an option - it's almost impossible to sort a mortgage within a typical 28 day auction completion timeframe - you could pay for a survey / solicitor to look through the legal pack beforehand, but if you fail to win the auction it's money down the drain.

I go to auctions monthly and there always bridging companies handing out business cards. Expensive finance, but may be cheaper than being served a 'Notice to Complete' and then the real risk of being sued.

Sellers go to auction because they want certainly of sale and to avoid timewasters / pulling out - so there will be no sympathy there, although keeping the deposit and a change to sell again may be enough.

Again having being through a situation last year, the advice from my solicitor was that failing to complete would have cost me much more than my deposit, and I would be liable for the contracted amount.

I should say i was a cash buyer - so could pay for it, so it wasn't literally impossible for me to finance.