When purchasing properties at auction, it is very important to be aware of the time constraints. Particularly when obtaining a mortgage to fund the purchase.
If the bid is successful, the usual time frame given to complete the transaction is 28 days. Therefore, advice should be obtained from a mortgage adviser and an offer in principle obtained prior to the auction to avoid any delay of the mortgage offer being obtained within the time scale.
The legal pack should also be obtained and checked prior to the auction in order to ensure that there is no defect in the title for example.
This is particularly important for leasehold properties. The lease may be defective and not satisfactory to a lender which would mean that a mortgage offer would not be provided unless the defect was rectified. Rectification can take a considerable amount of time and cost, in addition to the freeholder being in agreement.
Any delay in completion of the transaction within the time frame may result in a buyer losing their deposit.
Therefore, legal advice should be obtained well in advance of attending the auction.