buying at auction

Jumblebumble

tostaky said:

Sorry if that has been asked before.
I have seen a house on auction. I understand the bidding process (+ i have bought lots of furniture in auction rooms).
What I am not sure of is the fact that if you are the winning bidder, the exchange is done automatically and you have 20 days to complete the transaction.
Obviously we do not have the cash to buy. Would a mortgage in approval be sufficient enough? Would the bank allow us to buy this without having done a survey? Or will the lender have enough time to do a survey? Our deposit is not very big either £200k and the guide price is at £800k. Other houses in the area are selling around £1.1
This one is made of 3 flats, 2 ASTs (for which a section 22 could be used, I suppose) and one Regulated 1977 tenancy (and we will have to sit this one out). How will it influence the lender? Good because we have an assured rental income coming in every month, or bad because with a rental property there is always a risk of default?
sorry many questions! Thanks a lot
Ps: the plan would be to convert the two ASTs flat into one big one and live there until we can convert the lot into a house.

Very bad idea
Whjen you buy furniture you presumably have the liquid cash to complete the deal
With a mortgage you do not. What are you going to do if the lender declines you loan
Some free advice
If the guide price is 800K than it is likely to be worth that and is not a bargain

tostaky

Thanks all for your advice. As I said earlier, I quickly abandoned the idea. The protected tenancy scared me and we are looking for a family home, not at a way to make money.
It was interesting to think about it though.