Get that new property feeling this summer
National Property Auction
Thursday 26th May 2022 at 10:00am
Addendum
You can find the addendum for this month’s auction by taking a look at the link below.
The addendum is where you can find any last minute updates or changes to the lots on offer – it will be updated up until auction day, so if you’re bidding on Thursday, make sure to regularly check back to stay in the know.
Welcome to your May
auction catalogue
Andrew Parker
Managing Director & Auctioneer at
SDL Property Auctions
It’s my pleasure to launch the catalogue for our May National Property Auction, taking place on Thursday 26th May – with over 185 lots featuring in this month’s auction and the weather starting to feel decidedly summery, there’s no better time to have a browse and start laying the plans for your next property purchase.
With official statistics from the ONS reporting that the property market is now ‘back to normal’ as the effects of Covid finally wear off, we remain proud of having offered a route for buyers and sellers alike over the past couple of years.
There’s another fantastic selection of property opportunities featuring in this month’s catalogue, including everything from former nightclubs and WW2 beetroot pickling factories, to ready to go family homes and buy-to-lets.
A question we’re often asked when it comes to buying at auction is ‘can I get a mortgage?’. Auction properties can be mortgageable but there isn’t a clear cut yes or not answer as a lot can depend on the property itself. We’ve put together a handy guide below where you can find out more about the ins and outs of the process involved.
With plenty of properties for you to browse through this month, simply use the view all lots button at the end of this section to see the full range of over 185 properties on offer.
In Chesterfield, we have a great opportunity to acquire a substantial former cinema/nightclub which extends to over 33,200 sq. ft. which is being offered with part let/part vacant possession. 20 Cavendish Street sits in the heart of Chesterfield town centre and currently produces an annual income of £35,000 per annum while part let. The building could lend itself to being redeveloped into a variety of schemes, subject to the appropriate planning consents being applied for and granted. With a guide price of £270,000+ plus fees, this could become your next large-scale project.
For anyone looking for a truly unique property, the 19 Lichfield Street in Tamworth could be right up your street. This is a grade-II listed historic building in the centre of Tamworth, which post-WW2, was home to a beetroot pickling factory, with the pickling pots still remaining in situ. Internally the property benefits from an impressive hallway with sweeping staircase, two reception rooms, kitchen area and bathroom, as well as three bedrooms and two loft areas. The property also features an additional room that the SDL Property Auctions team have not been able to access. With the property benefitting from a pre-planning application for sympathetic redevelopment into nine apartments, this cold be the perfect opportunity for any local developer, with a guide price of £200,000+ plus fees.
Lot 95
- 19 Lichfield Street, Tamworth, Staffordshire B79 7QD
- Guide price*
- £200,000+ (plus fees)
In Leicester we find 14 Avebury Avenue – a four bedroom detached house in a popular residential location. The property benefits from a two-storey location and is in a relatively good condition throughout, thought it could benefit from some improvements and renovations. This makes it perfect for anyone looking to put their own stamp on their home, with this property having the potential to become a beautiful family home. With a guide price of £185,000+ plus fees, any interested buyers should be sure to take a look.
The perfect opportunity for any experienced investor could be found with the large development at 9-10 Great Hampton Street in Birmingham. This is a freehold mixed-use site which extends to approximately 14,000 sq. ft. and is within walking distance of Snow Hill and Jewellery Quarter train stations. It currently produces £51,620 per annum while part let, and is thought suitable for conversion into apartments, subject to obtaining planning consent. It currently comprises 11 offices, two apartments, one former factory, one basement and two retail units. It is thought that by letting the vacant areas, the annual income could increase by £75,000. With Birmingham’s continued development this could become a fantastic investment, with a guide price of £2,500,000+ plus fees.
Lot 98
- 9-10 Great Hampton Street, Birmingham, West Midlands B18 6AQ
- Guide price*
- £2,500,000+ (plus fees)
If you’re interested in bidding in this month’s auction, you will need to register before midday on Wednesday 25th May – to do so, simply head to our quick and easy online form here. It’ll take no more than a few minutes to complete and costs nothing to sign up.
There’s also a handy guide below which takes you through all our remote bidding options: online, on the phone and by proxy, so that you can bid in the way that you’re most comfortable with.
Our next National Property Auction takes place on Thursday 30th June. If you’re interested in selling by auction, take a look at our frequently asked questions below or contact our friendly team on 0800 046 5454.
Frequently asked questions
Over the past few months we have naturally received some questions from our bidders about how the buying process works. Largely we are operating as we always have been, we’re simply not able to see you in the auction room when you bid. We’ve put together these frequently asked questions to help guide you through your auction purchase.
A reserve price is the price stated as the lowest acceptable figure by the seller. This figure is confidential between the seller and auctioneer.
No, not always. The guide is an indication given by the auctioneer. Where the guide price is a bracket figure, the reserve cannot exceed the top end of the bracket price. If the guide price is a single figure, then the reserve can be up to 10% in excess of this.
After the auction has ended one of our team will contact you to advise you of the result.
Yes, and these vary depending on the method of sale associated with the property and the country in which you are purchasing. These are listed below – please note the reservation fee does not contribute towards the purchase price. Any further additional costs, which are payable in addition to the purchase price will be included within the Special Conditions that are attached to the Contract. Therefore all prospective purchasers must inspect the legal packs thoroughly. We also strongly advise prospective purchasers to request a legal representative reviews the pack for every lot that you may wish to bid on, so that you are fully aware of any additional costs, if applicable.
England and Wales
Unconditional with Fixed Fee: On the fall of the hammer, the successful bidder will be legally bound to purchase the property. The successful bidder must immediately exchange contracts and pay a 10% deposit (subject to a minimum of £5,000), along with a non-refundable Buyer’s Fee. The Buyer’s Fee is £1,074, and completion must take place within 20 business days, unless the Special Conditions of Sale state otherwise.
Unconditional with Variable Fee: On the fall of the hammer, the successful bidder will be legally bound to purchase the property. The successful bidder must immediately exchange contracts, pay a 5% deposit (subject to a minimum of £5,000) along with a non-refundable Buyer’s Fee of either 4.8% of the final sale price of the property up to and including £250,000, or 3.6% if the final sale price is over £250,000. The Buyer’s Fee is subject to a minimum of £6,000. Completion must take place usually within 20 business days unless the Special Conditions of Sale state otherwise.
Conditional with Reservation Fee: On the fall of the hammer, the successful bidder will enter into a Reservation Agreement with the seller and be granted an exclusivity period of 40 business days to purchase the property (unless the Special Conditions of Sale specify a different timescale). The successful bidder must use the exclusivity period to proceed to exchange of contracts and complete the purchase. On the fall of the hammer, the successful bidder must immediately pay a non-refundable Reservation Fee of 4.8% of the final sale price of the property up to and including £250,000, or 3.6% if the final sale price is over £250,000. The Reservation Fee is subject to a minimum of £6,000.
Scotland
Unconditional with Fixed Fee: On the fall of the hammer, the successful bidder will be legally bound to purchase the property. The successful bidder must immediately exchange contracts, pay a 10% deposit (subject to a minimum of £5,000) along with a non-refundable Buyer’s Fee. The Buyer’s Fee is £1,074, and completion must take place within 20 business days, unless the Special Conditions of Sale state otherwise.
Unconditional with Variable Fee: On the fall of the hammer, the successful bidder will be legally bound to purchase the property. The successful bidder must immediately exchange contracts, pay a 5% deposit (subject to a minimum of £5,000) along with a non-refundable Buyer’s Fee of 3.6% of the final sale price of the property, subject to a minimum of £4,000. Completion must take place usually within 20 business days unless the Special Conditions of Sale state otherwise.
Conditional with Reservation Fee: On the fall of the hammer, the successful bidder will enter into a Reservation Agreement with the seller and be granted an exclusivity period of 40 business days to purchase the property (unless the Special Conditions of Sale specify a different timescale). The successful bidder must use the exclusivity period to proceed to exchange of contracts and complete the purchase. On the fall of the hammer, the successful bidder must immediately pay a non-refundable Reservation Fee of 3.6% of the final sale price of the property, subject to a minimum of £4,000.
There are a number of options when selling by auction which can include paying no fees at all and having the buyer an additional fee instead.This is often an attractive option when you are selling due to a bereavement or a divorce and you have limited cash prior to the auction to fund the sale. Alternatively as a seller you can pay an initial fee and commission price for the sale of the property, meaning the buyer doesn’t have to pay anything extra, maximising the final sale price of the property
Regardless of which auction route is selected, there are solicitor fees to prepare the legal pack for your property, which typically costs around £350 to £500. After your home is sold, you will also need to instruct a solicitor for the conveyancing of the property, which can cost anywhere from £450 to £750.
Yes, if a reserve price is not met during the bidding process, then the lot will not sell. We continue to market our unsold properties after the auction and if a post-auction sale is agreed it will be carried out under auction conditions.
Bidding registration
Bidding registration closes at midday the day before the auction.
Registering to bid in one of our National Property Auctions is quick, easy and painless. By completing our online form, you can register for bidding online, on the phone and by proxy, meaning you can bid from the comfort of your own home. There’s no need to wait for the legal pack to be completed before registering, there’s no obligation to bid on the day and there’s no money taken prior to bidding.
Can you mortgage
an auction
property?
In short, yes, you are generally able to get a mortgage agreement on a property that you buy at auction. However, there is a criteria that you must meet before being able to do so. It’s important to note that not all auction properties are eligible for mortgage finance and that the property must meet a certain standard in order to be accepted.
How is it different to purchasing a property on the open market?
As the full cost of the property sold at auction must be paid within a particular timescale, determined by whether the lot is auctioned as unconditional or conditional, you must ensure that you can obtain the full amount of finance before this period comes to an end. As soon as the hammer falls, you are in a legally-binding contract to purchase that property under the terms set out.
Unconditional Auction Sale
On the day of the sale, if you are the highest bidder, then you must supply the full 10% deposit immediately after the hammer falls on the lot, and then secure and pay the rest of the funds within 15 working days (unless otherwise stated in the legal pack). If you fail to pay within this timescale, then you could lose your deposit, may be liable to pay the full amount and will be expected to foot the cost for the resale of the property at a forthcoming auction.
Conditional Auction Sale
A conditional sale tends to be the better option when it comes to securing mortgage finance, as the completion timescale is longer than an unconditional auction sale. With a conditional auction, you will have 40 business days within which to exchange contracts and complete the sale, unless the Special Conditions of Sale contained within the legal pack specify a different time limit. If you fail to do so, you may lose your reservation fee. During the 40-business day reservation period, the seller is not able to accept other offers.
This kind of sale means you have a better chance of being successful as a buyer purchasing a property in order to both own and occupy it, in comparison to an investor wishing to add to a portfolio, who may already have the finance readily available. A conditional sale also gives you more time to secure your mortgage, have a survey carried out, engage with solicitors, acquire buildings insurance, and complete any other admin work required.
How can I secure a mortgage before heading to an auction?
If you’re not a cash buyer and require a mortgage to purchase your auction property, then it is incredibly important that you secure a mortgage in principle before you attend the auction. A mortgage in principle means that the lender states that they would be willing to lend you a certain amount of money in principle.
To get a mortgage in principle you will need to provide your bank or building society with proof of your income. A mortgage in principle can give you a clear idea of how much you can potentially afford to pay for a property. Your mortgage in principle can act as your proof of affordability at the auction. The lender is able to back out at any time after supplying you with a mortgage in principle. We recommend having a mortgage valuation carried out on the property before you bid to ensure your lender is willing to lend on that particular property.
It is important to remember that a mortgage lender will only lend you the agreed amount based on the price at which the property has been valued, so proceed cautiously with your bids. If your bid goes over the auction estimate, which is not uncommon at auction, then you will be expected to pay the difference. This may also compromise your mortgage application, leaving you in a difficult situation, so plan a realistic budget and keep to it if you are considering buying a property at auction that will partly be financed with a mortgage.
It is also a good idea to have a survey carried out on the property before the auction takes place. This is to ensure you know exactly what you’re signing up for before you make the purchase, so you can avoid any unexpected costs after you move in.
When planning your budget, be sure to factor in all the added extras, such as valuations fees, surveys, legal advice, deposits and anything else outlined in the property’s legal pack. With a conditional sale, searches are generally included in the legal pack, so be sure to check these thoroughly prior to bidding.
What happens if the lender can’t meet the completion deadline?
Naturally, you may have concerns that your mortgage lender isn’t going to be able to keep to the short timescale. If you don’t have the funds available immediately and are worried about securing them in the 15 working-day period, then it is suggested that you opt for bidding on a property that is being conditionally auctioned, to give you a much longer period to arrange the required funds.
Typically, a mortgage takes anywhere from 2-6 weeks to be arranged, so you can rest assured that you will have enough time to complete the purchase when you choose a conditional auction sale.
In some cases this can take longer, but there are other financing options available to you while you wait for your mortgage deal to be secured.
A bridging loan can help you in the interim to pay the cost and can be obtained much quicker than a mortgage, usually taking around 10 days. A bridge loan provides you with a short-term solution to buy your property before your longer-term source is cleared. It’s important to note that a bridge loan has a significantly higher interest rate than a mortgage and so try to keep the term as short as possible if you must opt for this.
What type of properties am I unable to purchase as a mortgage buyer?
You’ll then need to pay the rest of the balance in full before your completion deadline, which will be set out in your legal pack (usually 20 working days). If you don’t pay the full balance within the timeframe, then you’ll lose your deposit and could be responsible for any reselling costs – but this happens very rarely, and it’s why you’ve arranged your finance in advance!
If you’d already decided that auction finance was the best option for you, then your lender will work with you to get the funds to your solicitor in time for completion. If you’d originally planned to pay for the property using a mortgage and things are taking too long, then it might be time to talk to your broker or a specialist lender. They’ll be able to assess your affordability and, assuming you qualify, progress your application very quickly.
Can I buy a property to renovate and finance it with a mortgage?
Typically a lender will not agree to give you a mortgage if the property you wish to purchase is in a particularly bad condition. If you wish to purchase a big renovation project, you may need to consider other options, such as a commercial loan instead. Once you have improved the condition of the property, you may then be able to apply for a mortgage. In some circumstances, you may be able to go down this route by arranging it in advance and having your bridge loan switched to a mortgage.
If you’re planning on purchasing a property at auction through mortgage finance, you should start to put your plans in place when the auction catalogue has been released. This is typically at least four weeks before the day of the auction. At SDL Property Auctions, you can also view the properties online.
If you’d like to learn more about auction finance, read our auction finance page or reach out to our team of specialist lenders at Together here who’ll be able to talk you through your options.
*Any property used as security, including your home, may be repossessed if you don’t repay your loan.
Remember to tune in!
Our Auction Events are broadcast online, live from our auction studio in Nottingham.
It’s really easy to tune in and watch on the day. The auction begins at 10:00am and will run throughout the day, with our each of our auctioneers taking to the rostrum. Simply visit our website where you’ll be able find a link to the auction on the day or follow the link below!
Our buyers terms
If you’re planning on bidding at auction, it’s really important that you do your due diligence prior to the auction – part of which is reading our buyers terms which you can find below. Make sure to read them in full to ensure you’re prepared to bid.
Guide to additional fees
Important notice relating to fees, costs and charges payable by the buyer in addition to the purchase price.
In addition to the purchase price, buyers may be required to pay additional fees, costs and charges. These may include, but are not limited to, Value Added Tax (VAT), Stamp Duty, ground rents, rent arrears/apportionment of rent, outstanding service charges, sellers search costs/disbursements, reimbursements of sellers solicitors, auctioneer costs or reservation fees. All prospective buyers are advised to inspect the legal documents including the contract and special conditions of sale and seek their own independent legal advice as to the full cost of purchasing a specific property.
Homes under the Hammer
If you’re successful in this month’s auction, you could take part!
Despite the current restrictions the Homes under the Hammer team are still looking for properties to feature in upcoming episodes of the show, even though they can’t be in the auction studio. If you’re interested in taking part in the programme or would like any information about what is involved in taking part please contact Mal Nichol on 07929 829814 or alternatively use the button below to contact them via email.
Legal Packs
We recommend reading the legal pack prior to the auction, to make sure you’re aware of all the information before bidding.
It’s really important that you take a thorough look through the legal pack for the property you’re interested in buying before placing a bid, as they lots of important information regarding your purchase. We recommend going through the pack with your solicitor prior to the auction. To view the legal pack for a property you’re interested in, simply click through to the lot using the list linked below, and select ‘legal pack’ on the right-hand panel.
