James
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Registered: 1st Jun 02
Location: Surrey
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Couple of questions:
Do you need to get a survey up front, or are you able to bid "subject to survey"? I'm assuming you need it up front, but it's quite a lot of money to outlay when the property could be withdrawn or you could easily lose it at the auction.
I read the legal pack for a property near me. It says "In addition to the purchase price the buyer will pay the seller on completion an additional two percent of the said purchase price". Is this common practice? There's no explanation as to what the fee might be for, so can sellers just dictate pretty much any terms they like in the legal pack?!
[Edited on 16-09-2013 by James]
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
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Pretty sure you can't bid subject to survey.
Also bear in mind that many will want to complete in 30 days so you need to make sure you get your money sorted up front and sure you can get it.
I've often heard of the sellers fees being paid by the buyer which may well be what the 2% is.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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You can't bid subject to survey. Deposit and fees normally needs paying on the day and completion within 30days is the normal.
You can have a survey done up front but if you don't win it, you've spent out on a survey.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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The fee will be the 'seller's fee' payable to the auction house. They're covering the fee by passing the 2% charge on to the buyer
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James
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Registered: 1st Jun 02
Location: Surrey
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The place I had my eye on sold for almost double the guide price anyway.
I know auction houses set the guide prices low to build interest but that's ridiculous.
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AndyKent
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Registered: 3rd Sep 05
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Guide prices are always set low so that (a) it draws interest and (b) makes the auction place look good.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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As said, I read into it.
1) You can't buy at auction as a first time buyer (shame because my dad is a builder)
2) You have to pay fees and deposits on the day, in the auction house. As soon as the hammer goes down, you're legally obliged to buy.
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John
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Registered: 30th Jun 03
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Why can you not buy as a first time buyer? How would they ever know that if you didn't tell them?
What if I was a first time buyer and had cash? There's no chance they'd turn me down. I think that must be made up Deano.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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From a mortgage perspective John, not cash.
EDIT: Well, so my Mrs says. Quick Google search shows you can 
[Edited on 17-09-2013 by deano87]
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Hammer
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Registered: 11th Feb 04
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Your Mrs doesn't want to move in with you....
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Ben G
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Registered: 12th Jan 07
Location: Essex
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Probably worried deano will be as frugal with the central heating as he is with his cars.
Cold showers and frozen interiors galore.
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Hammer
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Registered: 11th Feb 04
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The heating will be on optimal settings and only when his pie charts and spreadsheets allow for it.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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Why should a FTB not buy anywhere they please?
You need some money ready to cover the up front expenses so don't bid on the back of making a phone call about a 100% mortgage.
But no other reason. Affording the house being the main one.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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I think what Deano is referring to is the difficulty to raise a mortgage against an auction property for a first time buyer-not that a first time buyer who can secure the funds elsewhere can't buy one
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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Is it any more difficult to do that as FTB? I would think you need more equity whether its your first home or nth investment?
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John
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Registered: 30th Jun 03
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Deano was referring to him thinking that it wasn't allowed, he says so above, nothing to do with difficulty of raising a mortgage.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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quote:
Originally posted by deano87
From a mortgage perspective John, not cash.
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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I know that a lot of BTL mortgages have been withdrawn for first time buyers and lots of lenders have a prerequisite that you must own another property or have a domestic mortgage before they'll lend on a BTL mortgage. It wouldn't surprise me if it was similar for auction properties now
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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quote:
Originally posted by LiVe LeE
I know that a lot of BTL mortgages have been withdrawn for first time buyers and lots of lenders have a prerequisite that you must own another property or have a domestic mortgage before they'll lend on a BTL mortgage. It wouldn't surprise me if it was similar for auction properties now
I think this is the case.
tbh, my Mrs was probably talking out her arse and she gets confused when I talk about 90% LTV or 95% LTV. I will leave her to buy all the pots & pans I think 
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