HOW TO BUY A PROPERTY AT AUCTION

Unless you have adequate cash reserves, the chances are that if you are interested in buying property at auction, you will need a bridging loan. This is because of the short time period between having your bid accepted and having to pay for the property in full. This is typically only 20 days so there simply is no time to arrange a standard mortgage.

We have produced a simple guide to buying property at auction, to help you understand the process and timescales:

Guide to Buying at Auction

  • Register with the auction house to receive their catalogue preview and the guide prices.
  • From the catalogue, identify which lots interest you, taking care to read all the relevant notices.
  • Arrange to view the property that interests you.
  • Engage a solicitor, obtain the Home Information Pack, including the Energy Performance Certificate (EPC) and pass this on to them.
How to buy a property at auction - Hammer

Top Tip - Choose a quality solicitor who is experienced at dealing with property auctions and the time-sensitive nature of bridging loan finance.

  • Ask your solicitor to advise you on the terms and conditions of the sale, including any special conditions which may be attached to the sale.
  • Arrange a valuation survey. This can be done through your solicitor directly contacting the auctioneer to arrange access.
  • Arrange a bridging loan facility through a reliable and knowledgeable broker to ensure that you have rapid access to funds. At Rapid Bridging we offer a fast, efficient and trustworthy service.
  • Notify the auctioneer of your interest, so they can contact you if the property is withdrawn from sale or sold prior to auction. This may save a lot of wasted effort and time.
  • Make sure that as well as means of payment for the deposit (cheque or bankers draft only), you bring along with you to the auction, photo ID and proof of address. These will be necessary if your bid is successful.
  • If your offer is accepted, you will have to pay the deposit and exchange contracts immediately. Ensure that you have the funds ready for transfer and your solicitor has all the necessary documents prepared.
  • You will be asked to sign a Memorandum of Sale. Make sure you take the buyer’s part and pass it on to your solicitor along with any other documentation required to complete the purchase.

Top Tip - If posting documents, use special delivery or recorded delivery.

The above guide to buying at auction is brought to you by Rapid Bridging Ltd. We wish you success at the auction and look forward to finding the right bridging loan to finance your purchase.


Please feel free to contact us at anytime for more information on 02081507528"> 02081507528

Think carefully before securing other debts against your home. your home may be repossessed if you do not keep up repayments on a mortgage

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WE CAN HELP YOU IN THREE KEY AREAS:

COMMERCIAL

Is your business in desperate need of short term finance? A commercial bridging loan can help you:

  • Raise Capital to fund business growth
  • Overcome financial difficulties
  • Take advantage of a business opportunity
  • Fund a property purchased at auction

We can help purchase and re-finance your commercial property.

How to Buy a Property at Auction - Loans from 0.65%

DEVELOPMENT

It can be hard to find a development bridging loan, but we have the contacts and experience to help you:

  • Fund any type of renovation project
  • Take advantage of a bargain you don’t want to miss
  • Source finance for a property that’s otherwise unmortgageable

We can reduce the stress as part of your property development team.

Guide to Buying at Auction - Loans from 0.35%

RESIDENTIAL

When you need to raise money from property or land you own, a residential bridging loan can help you:

  • Buy before you sell, to avoid a chain breaking
  • Fund property you are buying at auction
  • Release urgent finance from your property or land assets

We’ll arrange your residential bridging loan quickly and easily.

Buying Property at Auction Loans from 0.55%

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