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Buying houses at Auction
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Foxtrot
Posted: 14 January 2022 12:41:06(UTC)
#1

Joined: 01/05/2017(UTC)
Posts: 418
Hi,

My daughter is looking for her first property, she wants to buy it herself, and we want avoid leasholds, so we're considering looking at buying something Freehold via auction (then getting builders in to sort things out) can anyone with experience here give us any tips?

I know it's not for the naive and intend to DMOR as well. All thoughts appreciated.
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ANDREW FOSTER
Posted: 14 January 2022 13:17:52(UTC)
#2

Joined: 23/07/2019(UTC)
Posts: 8,123

Thanks: 11363 times
Was thanked: 18231 time(s) in 5979 post(s)

In principle it's a great idea, and preferable to the trauma of leaseholds...

Gives scope to add value and start on the ladder. If work can be done oneself

The bit of advice I would give is this.... There is ALWAYS a reason that a property is being sold by auction rather than via an agent. Usually because, for some reason, the property in unmortgagable.

There may be many reasons for this. for example:

Structural defects
Defective title
No legal right of access (eg. crosses someones land but nothing in the deeds)
Flood or subsidence risk.
Deceased estate being sold by relatives.
Distressed sale, e.g. bankruptcy/reposession
Contaminated ground
Lack of mains services.
etc.

You need to know what that reason is. And you need to know if the problem can be fixed allowing a subsequent normal sale (in order to add maximum value)

If you can't find out, it doesn't mean there isn't a reason, it just means it's hidden and you haven't found it. And it may not be the "obvious" reason at first sight.
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4 users thanked ANDREW FOSTER for this post.
Ben's dad on 14/01/2022(UTC), Raj K on 14/01/2022(UTC), Foxtrot on 14/01/2022(UTC), NoMoreKickingCans on 18/01/2022(UTC)
Foxtrot
Posted: 14 January 2022 16:38:18(UTC)
#3

Joined: 01/05/2017(UTC)
Posts: 418
Many thanks Andrew, we'd probably get a surveyor to look at it, but take your point about it being a case by case inspection. We're both quite DIY hands on luckily, but no touching things like plumbing and sparks of course.
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ANDREW FOSTER
Posted: 14 January 2022 17:11:44(UTC)
#4

Joined: 23/07/2019(UTC)
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Thanks: 11363 times
Was thanked: 18231 time(s) in 5979 post(s)
Foxtrot;203140 wrote:
Many thanks Andrew, we'd probably get a surveyor to look at it, but take your point about it being a case by case inspection. We're both quite DIY hands on luckily, but no touching things like plumbing and sparks of course.


Don't limit the investigation to just the property, check for local development, HS2, new roads etc. etc.

There will be a reason.

I viewed a house once that was going to sealed bids. Turns out the house water supply came from some fields just above it, it had no mains water as such. Turned out the fields were due to be turned into a pig farm which would likely have contaminated the supply, but there was no record of any right to clean water from the fields...
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2 users thanked ANDREW FOSTER for this post.
Foxtrot on 14/01/2022(UTC), Fig Lee on 14/01/2022(UTC)
Foxtrot
Posted: 14 January 2022 17:23:51(UTC)
#5

Joined: 01/05/2017(UTC)
Posts: 418
yes indeed..."devil in detail" springs to mind.

I'm guessing you passed on that one-but perhaps you can't get the water board to put a new mains supply in....
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1 user thanked Foxtrot for this post.
bill xxxx on 17/01/2022(UTC)
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