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 April
Managing Director & Auctioneer at
SDL Property Auctions
It’s my pleasure to launch the catalogue for our April National Property Auction, taking place on Thursday 28th April – with over 160 lots featuring in this month’s auction, there’s no better time to take the ‘egg-citing’ first steps to securing your next property purchase than this Easter weekend.
However you’re spending this bank holiday weekend, I’d like to take the opportunity to wish you all a Happy Easter from myself and the whole SDL Property Auctions team and to thank you for your continuing support over the past few years.
There’s another great selection of various property opportunities available in this month’s catalogue, including substantial period properties and quaint countryside bungalows.
Financing a property at auction can sometimes prove to be a little trickier than simply getting a mortgage, as you would when buying on the open market. Alongside our friends at Together Money, we’ve put together a guide on how auction finance works, which you can find below.
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 160 properties on offer – you never know which one could make you a very happy bunny!
In County Durham, we have the perfect purchase for any Peter Kay fan – lot 35 is The Phoenix Social Club on Blooms Avenue. This is a single storey detached building, which currently consists of a lounge, bar and snooker area as well as a function room, kitchenette and WCs. There is also a brick built lower ground floor housing a cellar and storerooms. The premises currently generates a passing rent of £3,000 per annum, but the site has the potential for redevelopment for a variety of uses, subject to the necessary planning consents being obtained. With a guide price of £35,000+ plus fees, this could make a fantastic purchase for any budding developer.
A more typical investment opportunity on the other hand, can be found in Nottingham. Lot 12, 136 Haydn Road in Sherwood, is an end terrace property which would suit anyone looking for a project for their first home, or any landlords looking for a development opportunity to add to their portfolio. Despite requiring internal refurbishment, there is masses of potential throughout with three good-sized bedrooms as well as an open plan layout to the ground floor reception rooms. Its guide price of £145,000+ plus fees makes this a no-brainer purchase for anyone looking to invest in the area.
If you’re looking to add a stunning retail opportunity to your portfolio, or maybe expand your own business premises then lot 23 could be what you’re looking for. Though altered and restored, according to its entry in the National Heritage List for England (due to its Grade II listed status), the building is thought to date back to the 17th century, making it full of character. The property is offered with immediate vacant possession making it perfect for anyone looking to move into a new premises quickly, with the building already possessing consent for A1 retail usage. Previously let at £20,000 per annum, this would equate to a 12.1% return, based on the current guide price of £165,000+ plus fees.
For any buyers looking for a relatively fuss-free purchase, be sure to take a look at lot 100, 300 Manchester New Road in Middleton. In need of only cosmetic improvements, this could easily become a lovely family home or could be a lucrative addition to any residential portfolio. Set out over four floors, including a very special basement bar, the property also boasts three good sized bedrooms to the first floor, as well as loft space which could easily be used as a fourth bedroom. Located within easy reach of necessary amenities and with a guide price of £275,000+ plus fees, this would be a great purchase for the right buyer.
If you’re interested in bidding in this month’s auction, you will need to register before midday on Wednesday 27th April – 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 26th May. 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.
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 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.
Understanding how the auction finance process works, with just a little insider knowledge, could help you be more confident when it comes to bidding at auction.
In our other guest blogs from Together in this series we’ve already covered the basics about auction finance, including who it’s for and when you might want to use it. So this time, we’re looking at the whole process so you can fully understand what’s involved and go into your purchase with your eyes open.
Step 1: Get a decision in principle
Before you start searching for your ideal auction property, you should first engage with a broker or a lender to find out exactly how much you could borrow. Even if you’ve got a mortgage in principle in place, you should keep your options open in case anything happens to delay proceedings during your completion period.
We’ll give you a quick and free decision in principle; indicating how much you could borrow, and the costs involved (including your interest payments and other associated fees) in minutes. You’ll also be asked about your exit strategy when applying for auction finance – which is how you intend to pay back your loan within the 12 month period.
Depending on your circumstances, this is most likely to be one of two things:
- selling the property (if you’re renovating it to sell on)
- arranging long-term borrowing such as a mortgage.
Whatever plans you have for the property, we’ll talk this through with you in detail to make sure both you and the finance provider are confident that your exit plan is solid, so you’ve not got anything to worry about further down the line.
Once you’re pre-approved for auction finance, you’re ready to take the next step!
Step 2: Read the legal pack
When you’ve found a property of interest in your price range, it’s incredibly important that you read the legal pack in advance of the auction.
This is usually found on the auctioneer’s website, or will be available upon request. It contains all the legal information relating to the property and conditions of sale, so you must read the small print. It’s advisable you get a solicitor to check the pack as well – their experience could see them spot something you’ve missed, and provide you with professional advice on the right action to take.
If there’s something unusual about the property, you should check that this won’t affect your finance provider’s ability to lend. You may be surprised at what some lenders could take issue with – an ex-council building for example. At Together we have an open mind when it comes to different property types, so it’s worth checking if we could help, even if you’ve been turned down by someone else. You should also watch out for shorter completion deadlines and any additional fees, as you’ll need to talk to your lender to make sure they can get you the correct funds in time, before you make your bid.
Step 3: Making your bid
On the day of the auction event, or during the bidding period in a timed auction, it goes without saying that you need to have a maximum price in mind. Don’t let the excitement or fear of losing your desired property affect your decision making – if you go over what your lender has pre-agreed, you could risk them turning you down. If you aren’t successful, it’s the one that got away for a reason, and there’ll be plenty more gems to find in future auctions.
If you are the highest bidder – congratulations! Right away, you’ll pay a deposit to the auctioneer – typically 10% plus any fees – usually by debit card, so you’ll need to make sure you’ve got the funds in place ready.
Step 4: Completing the purchase
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.
Step 5: After completion
Once you’ve got the keys, you’ll usually have up to 12 months before you need to pay back your loan and arrange a long-term solution such as a traditional mortgage.
You’ll have agreed in advance with your lender the interest you’ll be paying each month and exactly how much you’ll owe at the end – so there are no surprises. These conversations will include any exit fees or early repayment charges that may apply to your loan, which will depend on your circumstances and what type of purchase you’ve made (whether it’s a personal purchase or an investment).
Your finance provider should keep in touch with you throughout the period you have your loan, to make sure everything is going to plan with your repayments and that your exit strategy is still viable. If you need some help, they’ll be able to talk to you about any refinancing options – whether you’re planning to live in your property, run a business from it, plan to let it out, or just need more time before selling it on.
*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!
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 either David Cook on 07814 079910 or Mal Nichol on 07929 829814 or alternatively use the button below to contact them via email.
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.