Auctions

Buying Property at Auction

Attwells Auction Team is dedicated to acting for buyers and sellers at Auctions across England and Wales.

If you are looking for your next redevelopment or renovation project, buy to let residential investment, commercial property, land to self-build or a good value property then auctions can be an excellent source of properties.

However, legal due diligence on any purchase is a must.

Attwells top 5 tips are:-

  • It’s what is not in the Legal Pack too.  Attwells’ Auction Team understands what should be included in the Pack and what could be missing and the implications of that.
  • Ask why is it in the auction?  Often it may be a matter of condition but it could be a legal defect too.
  • Make sure you have your financing lined up – at the fall of the hammer you have exchanged contracts and 28 days later you must complete or risk losing your 10% deposit.
  • Be careful of arrears on an investment property or major works bills on a leasehold purchase.
  • Don’t forget VAT on a commercial property.  Is it payable?  If so have you factored this into the purchase.

Attwells Auction Team has experts based in each of its offices who can provide you with a fixed fee to review an urgent auction pack and identify the risks for you. We pride ourselves on being able to offer a 24-48 hour turnaround from the point of receipt of the pack.

As part of our package, we are able to offer a Summary Review which includes a report dealing with the following points:

  • Are there any additional costs or overly onerous conditions in the contract?
  • Is the title clear?
  • Is there anything specific in the content of the legal pack which we believe is likely to cause an issue for your intentions for the property?
  • Do any searches contained in the legal pack contain any adverse entries?
  • Review of the statement of account (if applicable)
  • Are there any arrears of ground rent, service charge or rent under tenancies apparent from the content of the legal pack?
  • Are there any major works pending apparent from the content of the legal pack?
  • Are there any notice requirements of a freeholder or management company apparent from the legal pack?
  • Is there anything missing from the legal pack which would normally be included?
  • Based on the content of the legal pack, is the title to the property likely to be good and marketable?

If you require a more detailed review then a Full Review Service is available.

It is always strongly advisable to obtain legal advice on the contents of an auction legal pack prior to committing to a purchase, however in the event that you do decide to proceed without the legal pack being reviewed prior to the auction Attwells’ Auction Team are able to assist with facilitating completion. The following are included in this service:

  • Review of the legal pack and provision of a summary report to you highlighting any fundamental issues;
  • Arranging your signature to the transfer document;
  • Transfer of completion funds to the vendor’s legal representative on the date of completion;
  • Submission of an SDLT return to HMRC if required;
  • Submission of an application for registration of the transfer to Land Registry following completion;
  • Giving of notice of assignment to a Landlord or Management Company if required.

Residential Property Auction Fees 

 

Freehold Property

Leasehold Property

Summary Review of Auction Pack

£300 plus VAT and disbursements

£350 plus VAT and disbursements

Full Review of Auction Pack

£500 plus VAT and disbursements

£550 plus VAT and disbursements

Fee for facilitating completion (following legal pack review prior to auction) 

from £200 plus VAT and disbursements

from £250 plus VAT and disbursements

Fee for facilitating completion only (without review of legal pack prior to auction)

from £600 plus VAT and disbursements

from £700 plus VAT and disbursements

Commercial Property and Land Auction Fees

 

Freehold Property

Leasehold Property

Summary Review of Auction Pack

£400 plus VAT and disbursements

£500 plus VAT and disbursements

Full Review of Auction Pack

£600 plus VAT and disbursements

£700 plus VAT and disbursements

Fee for facilitating completion (following legal pack review prior to auction)

from £300 plus VAT and disbursements

from £400 plus VAT and disbursements

Fee for facilitating completion only (without review of legal pack prior to auction)

from £800 plus VAT and disbursements

from £900 plus VAT and disbursements

What is excluded from the service?

  • Legal advice outside the scope of the service described above
  • Dealing with any finance requirements. The work in connection with finance is due in addition and prices are available at our Property Finance Fixed Fee page.
  • Tax advice
  • Planning advice is not included.
  • If leasehold then dealing with landlord’s consent

Disbursements

SDLT will also be due and you can calculate your liability by reference to the following link.  If VAT is payable on the price the SDLT is payable on the price + VAT.

Land Registry Fees are due and will be payable based upon the purchase price and using the following link.

If the buyer is a company taking lending then a Companies House fee will be payable of £23.

In all cases bankruptcy and final searches will be due of £25.

If the premises are leasehold then notice of the transfer of the premises will need to be served on the Landlord whose costs typically range from between £50 and £200. We will confirm he figure once it is known to us.

How long will it take?

24-48 hours from payment of the fixed fee subject to Legal Pack availability. 

Who will do your work?

Your matter will be undertaken by one of our Commercial Property Solicitors: Nick Attwell; Tanya Warnes; Matthew Desborough or Joseph Harrison or our Trainee Solicitors under the supervision of Nick Attwell.

How do I instruct Attwells Solicitors

Instructing us is simple. You can either click on the instruct button below to register your interest or you can call us at your local office. We have offices in Ipswich, Colchester and London. When instructing us please inform us of the office you would like to use.

When will I pay?

You will need to pay the fixed fee on account. The balance of fees and disbursements will be due on completion.

If you are a buyer requiring expert advice at auction call Attwells Auction Team for a quotation on either 0207 722 9898 or 01473 229200 or email us at auctions@attwells.com.