Mortgage Finance at Auction

WeeCuppaCha

arctictree wrote: »

I bought 2 properties at auction. The first one had no problems.

The 2nd one, there was a boundary issue that took 9 months to sort. After 6 months of legal back and forth, I got sick of it and turned up at the neighbours door where we had a chat and staked out the boundary. Maps were modified with the land registry and the sale went through.

Can I asked if it took 6 months to close, how you avoided severe penalty? The quick closing date is one of my biggest concerns. Boundaries, not so much. It’s a semi d on a well established estate with fenced in plots. But obviously I would expect all of the above to be confirmed by my solicitor before proceeding.

arctictree

WeeCuppaCha wrote: »

Can I asked if it took 6 months to close, how you avoided severe penalty?

To be honest, i don't really remember. The solicitors were just taking ages going back and forth and the official closing date just slipped by.

Claw Hammer

Dav010 wrote: »

What is your problem here?

You are telling people that banks won’t lend for auction sales, they will, the op has confirmed that the bank will provide finance, and that all sorts of bad things could happen. Again, you are giving dubious legal opinions without having any experience apparently. Buyers engage solicitors, you trust your solicitor to sort through the issues and if there is a problem with the title that your solicitor can’t overcome, they will advise you of it.

I do not know about the legalities of this, I am not a solicitor, but neither are you. I have the good sense to acknowledge this and engage professional advice.

I never said that the banks would lend for auction sales. The banks will end in any kind of a sale provided they get a certificate of title from a solicitor. In the case of a receivership, quite often a solicitor cannot give a certificate of title. This is because of the exclusion clauses receivers put in their contracts. The broker was perfectly correct in what he told the OP. He quite rightly foresaw that there would be no sale resulting.

Claw Hammer

Graham wrote: »

Wouldn't you or your solicitor check the boundaries/maps before bidding?

In a normal sale, certificate of identity is provided and the owner is asked whether or not there is any dispute about boundaries in being. If the owner tells a lie, he and possibly his solicitor can be sued afterwards. In the case of a receiver, the receiver says he doesn't know if there are any boundary disputes and says he won't stand over any map that is provided.
No bank wants to advance funds for the purchase of a property only to find that a dispute about boundaries eruupts afterwards with consequential effects on the banks security.

lomb

I bought one with predecessor of Bidx and the boundary was through the apartments only bathroom. Obviously the bathroom was part of the apartment being sold. The solicitor spent around 5 months with the land registry and the other solicitor sorting it out and no interest was charged afaik. It was a cash purchase and I knew about it prior. They screwed up the area and stated it at something like 49 sq m when it was 35 . I also paid too much as wanted it and others were looking at misstated area.
I would double check everything if doing it again.

drunkmonkey

How's the bidding going, was looking at a buy to let myself there today but it's gone way over what I think it's worth...

WeeCuppaCha

drunkmonkey wrote: »

How's the bidding going, was looking at a buy to let myself there today but it's gone way over what I think it's worth...

Hi, well homes under the hammer it ain’t! Very slow, only a couple of bids so far. I’m just sitting on my hands for now, as I’m sure are most other interested parties. Couple of hours until it closes so I’m just going to wait and see where it goes. If it’s meant to be it’ll be.

drunkmonkey

Best of luck, wait until late as possible, good few bidders on the one I'm watching only a few minutes left, all value is gone out of it now, Guiding for 70k currently 103k.

WeeCuppaCha

Yeah, I reckon it’s gonna be a flurry of activity in the last 5-10 minutes. This one is very much under valued looking at PPR over recent times. I’ll just keep checking in and play it by ear. I’m not too emotionally invested so very much letting my head rule on this.

Sorry to hear yours didn’t work out. There will always be a next time.

drunkmonkey

Just sold there for 137k most of the bidding happened in the last 60 seconds, clock resets to 60 seconds every time someone bids.