Are you thinking of buying a property at auction? This method of buying property has become increasingly popular over the past few years. It can be a really quick, profitable way of purchasing a property as long as you do your homework beforehand.
Traditional Auction
There are generally two kinds of auctions used around the UK. The traditional auction, also known as a non-conditional auction, is the first. This style of auction means that when the auctioneer’s hammer falls closing the deal to the highest bidder, the contract is exchanged between buyer and seller, meaning the buyer is committed to completing the purchase and they have to pay a non-returnable deposit (generally 10%) and then complete the sale, paying the other 90 per cent balance within 28 days. This short payment window means that the buyer, if not using cash in the bank, really needs to sort out finance before the sale.
Modern Auction
By contrast, the modern method of auction, also known as a conditional auction, has more flexibility as far as the time needed to secure the finance to complete the deal goes. However, it is still advisable to arrange financing before the sale because at the end of the auction, once an offer has been accepted, the buyer will need to pay a non-refundable reservation fee (normally around 5 per cent of the purchase price) and will then have a 28-day window to exchange contracts and a further 28 days to complete the transaction.
The reservation fee doesn’t normally form part payment of the final selling price, so is an additional cost that needs to be covered. Although buyers could pull out of the purchase as contracts haven’t been exchanged, their reservation fee will be lost if they choose this path.
Whichever style of auction you come across make sure you are prepared before you reach the saleroom and start bidding by viewing the property itself, instructing a surveyor to inspect the property if you aren’t an expert, instructing a solicitor to make legal enquiries, downloading and reading the legal pack from the auctioneer’s website, arranging your finance based on the top price you want to pay for the property, registering to bid at the sale and more. Read some further tips on how to successfully buy an auction property here.
So now we’ve got some of the practicalities out of the way, let’s take a look at the promised five auction properties we have found for £60k or less.
Two-Bedroom Terrace Buy-To-Let Potential, Stoke-on-Trent, ST1 – £60,000 (freehold)
This traditional two-bedroom terraced property is located within walking distance of Hanley town centre in Stoke-on-Trent with its transport links, primary school, leisure centre and more amenities, so could be ideal for developers, investors or first-time buyers looking for a refurbishment project or a property with buy-to-let potential.
The house boasts a great sized family lounge, a kitchen/diner, two double bedrooms, an additional single bedroom, a bathroom, garden and on-street parking.
The agent, Belvoir Sales, Stoke-On-Trent, expects this house would rent out for c.£425-450pcm once done up.
View the virtual tour and the property listing for the auctioneer’s additional comments.
Crownhill Park, Torquay – Guide Price £60,000
This one-bedroom flat is located in the highly sought-after location of Chelston, Torquay, just a short distance from Torre Train station and within walking distance of local amenities and the stunning seafront, so could make a great holiday let. Benefits include off road parking and a long lease.
Marketed by Connells, Torquay, this property is for sale by the Modern Method of Auction in which the buyer has 56 days to complete and will be required to put down a non-refundable reservation fee of 4.2 per cent amounting to a minimum of £6,000 including VAT. Read the agent’s additional comments on the listing or take the video tour.
One-Bedroom Flat, Near Beach with Lifetime Tenancy at Nil Rent – Shanklin, Isle of Wight, PO37 – Guide Price £25,000
We’ve selected this property not just for its fabulous location, amazing price (just £25k) and buy-to-let potential but also for the interesting way it is being sold. The property is subject to a ‘Life Tenancy at nil rent’, which means the tenant has the right to live in the property until they pass away. At this point, the property becomes free for the buyer to live in or rent out as they see fit.
Whether the tenant is the owner of the property is not clear from the listing, however, the agents, Auction House London, in Hampstead will be able to provide more details on the sale including the auction pack.
This Isle of Wight property, which is being sold by public auction, is located on a tree-lined residential street that’s a few minutes’ walk to Shanklin Down with its stunning clifftop and coastal views. The High Street and Beach are only a few minutes’ drive or bus ride away.
Once the property, which comprises a reception room, bedroom, kitchen, bathroom, allocated off-street parking and communal gardens, is vacant it will make a fantastic holiday let. We wonder who will take the risk and buy this property and how long they will have to wait to properly claim it as their own!
Castlereagh Street, Silksworth, Sunderland, SR3 – Tenants in Situ £60,000
For sale by Conditional Online Auction, this mid-terraced property in Silkworth, Sunderland benefits from being sold with tenants in situ paying £425 per calendar month (£5,100 per annum).
Being marketed by Castle Dene, Hartlepool, the property comprises an entrance hall, living room, fitted kitchen, two double bedrooms and a family bathroom. The property also benefits from gas central heating and double glazing.
For further information on the sale, including details on viewing the legal pack, learning more about the reservation fee and auction date and time, visit the listing on Rightmove.
2nd Floor Apartment, Investment Buyers Only, Cemetery Road, Ipswich, Suffolk – Guide Price £55,000 (leasehold)
This well-presented second floor flat situated close to Ipswich Town centre is currently let on an assured shorthold tenancy agreement.
The accommodation consists of an entrance lobby with stairs rising to a landing that allows access to all rooms. There is an open plan living space, master bedroom and modern shower room. The property also benefits from gas central heating and double glazing.
The property, marketed by Leaders Sales, Felixstowe is for sale by the Modern Method of Auction, which requires both parties to complete the transaction within 56 days of the draft contract for sale being received by the buyer’s solicitor. Starting Bid Price = £55,000 plus Reservation Fee.
Third Floor Flat, Marylebone, London, W1G – Guide Price £50,000 (leasehold)
Our final auction property for £60k or less is situated in the highly sought after area of Marylebone on the popular Marylebone Road close to local shops and amenities.
The property, which is up for sale by public auction, comprises a one-bedroom, third floor flat situated within a purpose-built block arranged over ground and five upper floors.
Location-wise, transport links are provided by Baker Street underground station (Bakerloo, Circle and Hammersmith & City lines) while Marylebone railway station and the iconic Regent’s Park are within walking distance.
The property, being marketed by Auction House London, Hampstead also benefits from a communal roof terrace, a porter service and a lift.
Check out the video tour and access further details about the auction method on the property listing.
Auction details and prices are correct at the time of writing.
