Auction property valuation issues

sinkquick

Hi all,

Basically I've paid for my deposit, along with the estate agents fees, to an auctioned property. The issue I'm having is NatWest have come back with the following in regards to their valuation.

Valuer comments: Evidence of was noted. A further inspection of all parts of the property should be undertaken by a specialist contractor who is a member of the Property Care Association, and all recommended remedial work carried out, backed by an appropriate insurance backed guarantee.

Please note the first sentence where it doesn't actually state the "Evidence of". Of what exactly?

I've been in touch and I'm hopefully going to have an answer to this but I'm just wondering what my options are as I can't get any work underway if I'm not in the property and I can't get in the property if I can't get the mortgage approved.

Are there any circumstances where you would be able to agree to undertake the work once approved? Apologies and no doubt you can tell this is all very new to me.

JGB1955

AIUI auction properties are not usually mortgageable - hope I'm wrong!

sinkquick

JGB1955 said:

AIUI auction properties are not usually mortgageable - hope I'm wrong!

I hope you're wrong too as the estate agent told me that they are.

silvercar

JGB1955 said:

AIUI auction properties are not usually mortgageable - hope I'm wrong!

That is a generalisation that isn’t always true. Properties go to auction for a variety of reasons and often those reasons eg lease length, dilapidated may be a reason it isn’t mortgageable. Sometimes mortgageable properties go to auction, though it can be difficult to arrange the mortgage in time for the tight completion deadlines often imposed on mortgage properties. Usually I would say you need to have your mortgage lined up before bidding and that does mean spending some money with no guarantee you will win the auction.

Hoenir

How much due diligence did you perform prior to bidding for the property? With auction properties one needs all ones ducks in order. As the time to complete the transaction is limited. Failure to do so can be very expensive. Hence why often better suited to cash buyers. 

chanz4

we sold one of ours at auction as cba with the hassle 

kingstreet

Usual advice is to have a formal mortgage offer in hand before the auction. Avoids this kind of 11th hour panic.