What to consider when buying property at auction
Speed is very much of the essence to ensure all of the legal requirements for the purchase are fulfilled before the deadline, as you risk losing your 10% deposit if you fail to complete at this point, as well as losing the chance to continue with buying the property. Purchasing a property at auction is legally binding (essentially the same point as the ‘exchange of contracts’ in a conventional home purchase) and you are legally committed to the purchase as soon as the hammer falls.
If you are using a mortgage to fund some of the purchase, it’s important to have everything in place before you bid, with a lender that is happy for you to borrow on an auction property.
The importance of the legal pack shouldn’t be understated when you’re buying a home at auction, as there can often be special conditions of sale that can ultimately be very costly or prevent you from doing what you want with the property, so you must ensure that you know about these before bidding. The same goes for potential issues with the legal title, environmental concerns or any problems with a lease, if applicable.
A good auction conveyancing solicitor will be happy to help you review the legal pack for a property that you are considering bidding for ahead of the auction, as they can spot things that you might not in the paperwork available from the vendor.
With the 10% deposit due on auction day and the remaining 90% usually required within 28 days, the outstanding conveyancing requirements need to be completed efficiently, which is best done by those with both knowledge of the auction property market, and experience in dealing with the challenging auction timeline for these properties.
Why choose Stephensons for auction property conveyancing in London?
Stephensons have a highly experienced conveyancing team with essential knowledge of not just the auction conveyancing process, but also the London property sector, helping to ensure that all of the necessary due diligence is done before the auction, as well as all of the essential legal work to complete the transaction within deadline.
With a proven track record of helping many auction property buyers with what can be a daunting and complex process, we offer specialist legal support you can trust.
Get in touch to find out more by calling 0161 696 6187.