Quick take: Auction purchases are legally binding the moment the hammer falls. First-time buyers often underestimate the preparation required, leading to avoidable financial exposure. This guide covers the practical steps and common pitfalls based on how UK property auctions actually work.
Make decisions faster. Free trial, review auction/conveyancing packs in 10min. Thereafter just 30 pounds per review. Start your review now
How Auction Purchases Differ from Private Sales
In a standard private treaty sale, you exchange contracts weeks after making an offer, giving time for surveys, mortgage approval, and legal checks. At auction, exchange happens immediately. You typically pay a 10% deposit on the day and must complete within 20 to 28 business days.
If you cannot complete, you forfeit the deposit. You may also face a claim for the difference if the property sells for less at a later date. This timeline leaves very little room for error.
1. The Legal Pack Is Not Optional Reading
Every auction property should have a legal pack available for download, usually from the auctioneer's website. This pack typically contains:
The title register and title plan
Property information forms (TA6 and TA10)
Local authority search results
The special conditions of sale
A buyer in the South East purchased a two-bedroom flat at auction without reviewing the legal pack. The title register showed a lease with 58 years remaining. Most high-street lenders will not offer a mortgage on a lease below 70 years. The buyer had to arrange expensive bridging finance to complete and then negotiate a lease extension with the freeholder at considerable additional cost. This was all in the legal pack.
2. Financing: What Lenders Will and Will Not Accept
Not all auction properties are mortgageable. Properties without a functioning kitchen or bathroom, those with non-standard construction (concrete panel or steel frame), and those with very short leases may be declined by mainstream lenders.
If you plan to use a mortgage, speak to a broker before the auction. Get a mortgage agreement in principle and check whether the specific property type is likely to be accepted.
3. Hidden Costs in the Special Conditions
The special conditions of sale can add thousands to the purchase price. Common additions include:
Buyer's premium (typically 2% to 4% plus VAT of the hammer price)
Contribution to the seller's legal costs (often 1,000 to 2,000 pounds)
Reimbursement for property searches (300 to 500 pounds)
Administration fees charged by the auctioneer
On a property with a hammer price of 150,000 pounds, these extras can add 8,000 to 12,000 pounds. They are not always obvious in the catalogue listing.
4. Practical Steps Before Auction Day
Download and read the legal pack as early as possible
Arrange a mortgage agreement in principle if not buying with cash
Visit the property in person and consider commissioning a survey
Set a maximum bid that accounts for all additional costs, stamp duty, and any estimated renovation work
Have a solicitor or conveyancer ready to act immediately after the auction
How Unwildered Helps You Prepare
Reviewing a legal pack thoroughly takes time and legal knowledge. Unwildered's AI checks against 30+ data points to help identify headline risks in minutes:
Lease Length Check: We flag short leases that may affect mortgage eligibility
Hidden Cost Detection: We identify buyer's premiums, search fee reimbursements, and legal fee contributions in the Special Conditions
Title Issues: We highlight possessory titles, restrictive covenants, and missing documents
Note: Unwildered is not a substitute for solicitors. We help you triage packs so you only send viable deals to your lawyer, saving you money on aborted fees.
FAQ
Can I pull out if I find a problem after the auction?
No. When the gavel falls, you are legally bound. If you fail to complete, you lose your 10% deposit and can be sued for any loss. This is why due diligence before the auction is non-negotiable.
Do I need a solicitor before auction day?
It is strongly recommended. A solicitor can review the legal pack before you bid and be ready to act immediately after the auction. Some buyers have the legal pack screened first using AI tools, then instruct a solicitor only for properties that pass initial checks.
Disclaimer: This article is general information, not financial, tax, or legal advice.
No credit card required
