Property auctions can provide a great opportunity to secure a property below the actual market value or open market value (OMV). In the current climate many properties are not achieving their expected sale price. Buying the right property at auction can give the professional investor an opportunity to find bargains that are perfect for building your buy to let portfolio or for selling to make a good profit margin, thus boosting your cash flow.
After a Refurb, the property can be sold on to another investor or home buyer or refinanced with a buy to let mortgage. Be aware of the 6 month rule* which can sometimes limit your ability to exit in less than six months.
To be successful at auction, you will require cash for the deposit and refurbishment. We can provide a proportion of the funds or up to 100% of the purchase price with additional security. Most auctions will require a 10% deposit payable on the day with completion usually within 28 days.
- Decision in Principle same day
- Up to 100% of the purchase price with additional security
- Flexible criteria
- Loans From £26,000
- Rates vary – Call for Details
* The six month rule
The CML – Council of Mortgages Lenders insist that all Solicitors who are bound by a code of conduct report to the lender when acting for a buyer if the property has been owned by the seller for less than six months. This applies if you are buying with a mortgage from a CML Lender. Since many auction purchases may be sold or refinanced within the six month period a CML Lender may not lend.