Frequently asked questions
The auction fees are payable on all property and land lots. This will be payable upon the fall of the gavel as contracts are exchanged. This will be paid at the same time as the deposit if you are the highest bidder on a lot, before leaving the auction venue. The amount payable will be specified in the lot description.
Usually the Purchaser shall pay a deposit of 5% and auction fees of 2% +VAT inclusive (or a minimum of £5,000 +VAT) as contracts are exchanged. The purchaser is legally bound to buy and the vendor is legally bound to sell the Property/Lot.
There are a few reasons for this and the most obvious include the following:
- Properties without a kitchen or bathroom.
- Properties with any kind of structural defect, damp, dry or wet rot.
- Properties close to mining works, areas of landfill, areas of recent flooding or subsidence.
- Leasehold properties with a short lease, typically less than 70 years, or a defective lease.
- Where there are boundary disputes or where planning applications have not been applied for correctly.
- Derelict property or where part of the building is in severe disrepair and needs demolishing.
- Properties of non-standard construction. Standard construction has brick or stone walls with a roof made of slate or tile, so anything that differs from this will be classed as Non-Standard.
- Some properties with sitting tenants or regulated tenancies.
- All properties with a value below a threshold, sometimes stated as £40,000.
If you don’t exchange on the date set you will be given what’s called ‘Notice to Complete’ – This will last for 10 days and will incur a daily charge, of which the amount can be found in your contract. Failure to complete at all with result in a forfeit of your deposit as well as your buyer’s premium plus any shortfall once the property or land is re-auctioned and sold.
- Short-term finance
- Funding for residential, commercial and land purchases
- Funding for non-standard construction
- All income types considered
- Up to 70% loan-to-value
- Monthly interest rates from 0.55% (other fees and charges apply)
A survey isn’t compulsory, but if you are unsure about the structure or condition of the property then you might wish to instruct a surveyor, an engineer, or a builder for some advice.
But remember, as soon as the gavel falls there is a binding contract of sale. The property is at your insurable risk from this point.