Buy-to-Let at Auction

Part of our First Choice Acquisition Service involves buying distressed/derelict property through auctions.

We have developed an Auction Analyser Matrix that enables us to analyse auction results in depth and arrive at a maximum bid price, which meets pre-set criteria, for forthcoming auctions that include the type of property we are looking for.

The advantages of buying at auction are that more than one property can be bought on a single day and, following "fall of the hammer", exchange of contracts takes place immediately with completion 28 days later.

There is therefore little chance of the vendor withdrawing, for whatever reason, or the legal process taking months, as can be the case with properties bought through Estate Agents.

Also, without doubt, real bargains can be bought in auctions, though inexperienced investors need to take great care that what appears to be a bargain doesn't turn out to be a lemon. Lemons are also sold in auctions!

The disadvantages are that there is very little lead time between the auction list being published and the subsequent auction, during which time the property(s) must be viewed & costed and legal packs obtained and checked on those properties that are of interest.

Viewing days involve inspecting a property in 15 minutes with limited travelling time between properties added on.

During this 15 minute inspection a potential purchaser must be able to measure the property, sort out any internal layout problems and schedule all the necessary works for pricing later, often without any artificial light, which, during winter months, can mean literally "in the dark".

Another potential disadvantage is that most properties have to be bought with cash, as there is insufficient time (28 days) between the auction date and completion to arrange a conventional mortgage, and, in the case of derelict properties, it has to be cash, as they are not mortgageable until they have been refitted to a good standard.

For this reason we recommend that prospective purchasers rely on Bridging Finance , which, even allowing for the relatively high rate of interest, is the most cost effective way of proceeding. See Bridging Finance Matrix

Our "Buy-To-Let at Auction" Service covers all the points raised and includes:

An analysis of the auction list to identify properties that meet our pre-set criteria.

Viewing those properties meeting the criteria with our local builder and, during the 15 minutes allowed, measuring all relevant rooms, discussing layout changes and checking the feasibility, agreeing the extent of necessary works, which are subsequently costed up and reported back to us within 3 days.

The resultant numbers are then fed into our Auction Analyser Matrix and the maximum bid price is arrived at.

Legal packs are ordered for the properties that we intend to bid for and these are sent direct to our conveyancing Solicitors McCormicks for checking.

Only then are we in a position to proceed and advise any pre-registered clients of the properties that we will be bidding for.

Clients interested in this part of our Acquisition Service must pre-register and provide us with the following before any auction:

• A cheque for 10% of the maximum bid price.
• A Certified Copy of their Passport or Driving Licence
• 2 Proofs of Residence (Utility/Council Tax Bill, Driving Licence)(Originals)

Pre-registration involves an Administration Fee of £ 250 plus a non-refundable payment of £ 250, which is subsequently taken into account when we raise our fee account, (see Acquisition Service Fees ) and clearance in principle by our Bridging Finance connections if required.