UK Auction Houses
for Property Investors

1. Research the auction house - understand their terms, buyer's premium, and format
2. Register to bid - most houses require advance registration with ID
3. Get finance pre-approved - secure a bridging loan decision in principle before auction day
4. Instruct a solicitor - have them review the legal pack before you bid
5. Arrange a survey - view the property and assess its condition
6. Set your maximum bid - include ALL costs: stamp duty, legal fees, buyer's premium, refurb
7. Prepare your deposit - typically 10% of the hammer price, payable on the day
8. Attend as observer first - watch an auction before bidding to learn the rhythm
9. Bid decisively - confident, clear bids show you're serious
10. Have your solicitor on standby - exchange happens immediately after the hammer falls

The legal pack is the most important document in any auction purchase. Key items to check:

• Title deeds - confirm ownership, boundaries, and any rights of way
• Special conditions of sale - look for unusual completion timelines, additional fees, or restrictions
• Local authority searches - check for planning issues, conservation areas, or proposed developments
• Environmental searches - flood risk, contaminated land, subsidence
• Leasehold information - if leasehold, check remaining term, ground rent, service charges
• Seller's property information form - disputes, alterations, guarantees

Top tip: Always have a solicitor review the legal pack. The cost is small compared to the risk of missing something critical.

Bridging loans are short-term finance designed for auction purchases and property development.

• Typical rates - from 0.44% per month, depending on LTV and property type
• LTV - up to 75% of the property value (some lenders up to 80%)
• Term - usually 3-18 months
• Speed - funds can be released in as little as 7 days
• Arrangement fee - typically 1-2% of the loan amount
• Exit strategy - you'll need a clear plan: refinance to mortgage, or sell

Having a bridging loan pre-approved before auction day means you can bid with confidence, knowing you can complete within the required 28-day window.

What to look for when viewing an auction lot:

• Structural issues - cracks in walls, sagging roofline, damp patches, bowing walls
• Roof condition - missing tiles, lead flashing condition, gutter state
• Electrics & plumbing - age of systems, visible wiring condition, boiler type and age
• Damp & timber - rising damp, penetrating damp, woodworm, dry rot
• Windows & doors - single/double glazed, frame condition, draughts
• External areas - boundary walls, drainage, access, Japanese knotweed

Budget rule of thumb: For heavy refurb projects, budget £1,000-1,500/sqm. For light refurb, £300-600/sqm.

The hammer price is just the starting point. Here are the fees to budget for:

• Buyer's premium - 0% to 4.2% (inc. VAT) depending on the auction house
• Admin/reservation fee - some online auctions charge £5,000-6,000+ for conditional sales
• Stamp Duty (SDLT) - standard rates apply, plus 5% surcharge for additional properties
• Legal fees - solicitor costs £1,000-2,500 for a standard auction purchase
• Survey - £300-800 depending on type and property size
• Bridging finance costs - arrangement fee (1-2%) plus monthly interest

Example: A £150,000 hammer price lot could cost £170,000-180,000 all-in once you include all fees and taxes.

The 28-day countdown to completion starts the moment the hammer falls:

• Day 0 (Auction day) - pay 10% deposit, exchange contracts, sign memorandum of sale
• Days 1-3 - instruct solicitor to proceed, confirm bridging loan application
• Days 3-10 - lender valuation arranged and completed
• Days 10-20 - lender issues formal offer, solicitor completes searches
• Days 20-25 - final checks, funds drawn down from lender
• Day 28 - completion deadline. The remaining 90% is paid, keys are released

Critical: If you fail to complete, you lose your deposit AND may be liable for the seller's losses. Always have finance confirmed before bidding.