I went to a property auction a few weeks back, and saw a flat potentially worth about half a million go for £134,000. Ok, it only had an 8 year lease left on it, but that still has to be a massive bargain - or is it??
Buying at auction may be a potential way to beat the ridiculous house prices we have at the moment, but please don't do it without taking the proper advice.
Firstly, if you are not buying for cash, do speak to a qualified adviser regarding any possible pitfalls around buying at auction with finance.
Secondly, please ensure that you obtain the legal pack from the seller
of the property and have it looked over by a solicitor or conveyancer
who is used to dealing with this stuff. There may be issues with
extending the lease on the property mentioned above, and that is one of
the many issues that may crop up. You need somebody qualified to look
into all possible problems before you go and risk very large chunks of
your hard-earned money.
Ok, I know it can cost between £500 and £800 to get a legal pack checked, and that's for something you may not ultimately want or get - however, its a great deal preferable to spending a fortune buying a turkey.
If you would like a solicitor whose charges start at a mere £297 for checking legal packs, then go to movingbricks.co.uk. Its a great firm, they can do loads online, the oh-so important speed is there, and they can also go on to do your conveyancing if you go ahead with the purchase. Conveyancing costs start at £445.
If you want to know more about checking legal packs, read my other blog here
WHAT IS A LEGAL PACK?
When a property is sold at auction, it is usual for a legal pack to be prepared by the seller's solicitors. There is no legal requirement for the vendor to produce a pack, but it is highly recommended that you focus your attention on properties where there is such a pack available, and that you have the documentation inspected thoroughly by a solicitor/conveyancer prior to auction day. You will normally find the packs on the auction website via the property details page, or a hard copy will usually be available in the auction room.
A pack will typically consist of the following:
• Official Copy of Register of Title (Office Copy Entry)
• Land Registry and Local Searches
• Leases
• Special Conditions of Sale
• Property Information Form
• Tenancy Agreements
• Fixtures and Fittings Form
• Management Information
• Planning Permission Documentation
Auction teams recommend that all elements of the legal pack are inspected by those wishing to bid and their legal advisors. The Special Conditions of Sale will include pertinent information such as completion date, any additional disbursements that become payable on completion, and overage clauses.
Ok, I know it can cost between £500 and £800 to get a legal pack checked, and that's for something you may not ultimately want or get - however, its a great deal preferable to spending a fortune buying a turkey.
If you would like a solicitor whose charges start at a mere £297 for checking legal packs, then go to movingbricks.co.uk. Its a great firm, they can do loads online, the oh-so important speed is there, and they can also go on to do your conveyancing if you go ahead with the purchase. Conveyancing costs start at £445.
If you want to know more about checking legal packs, read my other blog here
WHAT IS A LEGAL PACK?
When a property is sold at auction, it is usual for a legal pack to be prepared by the seller's solicitors. There is no legal requirement for the vendor to produce a pack, but it is highly recommended that you focus your attention on properties where there is such a pack available, and that you have the documentation inspected thoroughly by a solicitor/conveyancer prior to auction day. You will normally find the packs on the auction website via the property details page, or a hard copy will usually be available in the auction room.
A pack will typically consist of the following:
• Official Copy of Register of Title (Office Copy Entry)
• Land Registry and Local Searches
• Leases
• Special Conditions of Sale
• Property Information Form
• Tenancy Agreements
• Fixtures and Fittings Form
• Management Information
• Planning Permission Documentation
Auction teams recommend that all elements of the legal pack are inspected by those wishing to bid and their legal advisors. The Special Conditions of Sale will include pertinent information such as completion date, any additional disbursements that become payable on completion, and overage clauses.
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