If you’re looking to make a prudent investment when it comes to property, one very smart way to do it via a property auction. Although this can often net you a steal, the times frames needed to complete purchases are stringent and fines via auction houses heavy, should you not have the initial capital needed on time. One way that individuals can attempt to circumnavigate this is to try to obtain a buy-to-let mortgage for an auction property. Although this sounds simple, it’s not, and buy-to-let mortgages are notoriously tough to arrange around auctioned property.
If this is something you’re seeking to do, having found a bargain property via auction, the one thing which will help tip the scales in your favour is experience as a landlord with an existing portfolio of properties and a demonstrable track record – particularly if the property in question is in need of substantial works before it is due to be rented. Auctions also tend to state a timescale of around one month for the purchase to be completed, so this is best not spent trying your luck via mortgage lenders.
Lenders also often seek to inspect the property to see if it falls in line with security laws and to ascertain if it can be let in its current state. Cases by case, this method of obtaining a buy-to-let mortgage on an auctioned property can be successful, but there are an awful lot of variables. That said, it’s not impossible and there are a few key points to consider to make things as smooth and stress free as possible:
- Study your finances carefully before attending auctions and avoid acting on a whim
- During viewings, try to take an expert with you who can advise on potential works needed
- Check out what financial information you need to give to an auction house before purchasing
- If your finances are sorted you might be able to put in an offer before the auction goes ahead
- Be aware of non-refundable fees and deposits
- The property may sell for well over its guide price, so maintain a clear picture of the maximum you can invest
Why continue paying thousands each year in commission to let your property? With 97% of landlords recommending our services, and with over 50,000 tenants joining our rental community in the last year alone PropertyLoop is welcoming a new era of renting.
The PropertyLoop platform establishes the trust, transparency and personal service that has been lost from the renting sector. We are anything but another faceless corporation looking to profit from your investment, but a community founded on expertise and ambition.
We offer landlords complete clarity on available specialists through a landlord controlled rating and review system, giving users complete confidence of your PropertyPro’s proven results in finding owner’s ideal tenants faster.
With PropertyLoop landlords will have everything they need to let out their rental from start to finish, with no hidden fees, financial barriers or catches; only a revolutionary new way to let.
