According to a recent survey by Unbiased, buying property at auction has soared as buyers seek to grab a bargain.
Unbiased states: “The first and most obvious reason is the shutdown of the property market during spring 2020, followed by the stamp duty holiday to get transactions moving again.”. Places such as Ascot have seen high demand for Ascot solicitors due to the growing trend; however, there are a number of common problems with auction properties that buyers need to look out for. Let’s explore the top five:
1. Damp
Properties that come up at auction have often been neglected or have been empty for many years. Damp is a common problem, so buyers will often be able to see or smell the damp in the property.
Always try to see whether you can work out where the damp is coming from. It could be from a broken gutter or broken roof tile, which can be easily fixed. Alternatively, it could be severe; for example, it could be caused by broken and leaking pipes. If you cannot locate the source of the damp, always seek a professional opinion to find out exactly what the issue is and the action necessary to fix the problem.
2. Rotting joists
There are two main types of rot that can affect joists: wet rot and dry rot.
Wet rot occurs when water has seeped through; for example, poor ventilation, such as blocked air bricks, can cause water to get in and prevent proper air circulation. Wet rot is usually fairly easy to fix when the source of the problem has been identified.
Dry rot is usually more costly and complicated. Dry rot occurs when airborne spores come into contact with damp timber; for example, floorboards that have ‘bounce’ in them will need to be investigated, as this could indicate that the joists are beginning to rot. If left untreated, dry rot can cause the floor to eventually fall through, wooden structures to weaken, and even the foundation to collapse.
3. Cracks to walls
Cracks that are internal and run in straight lines usually indicate the joins of the plasterboard. Anything bigger than a hairline crack will need to be investigated. Wide cracks will need a structural engineer to check whether there could be a subsidence issue.
4. Limited leasehold remaining
Leaseholds are common on some types of properties, especially flats. If the property is leasehold, it means that you own the property but not the building or land and must pay ground rent to the freeholder. It is always worth checking the number of years left on the leasehold. Anything less than 80 years remaining can cause problems, as mortgage companies are reluctant to mortgage such properties.
5. Incomplete legal packs
The legal pack contains information about the property, searches, and information about the auction process. It may also include other conditions, such as information about covenants, whether there are any existing tenants, ongoing disputes, ownership issues, enforcement notices, and many other important issues. Always seek legal advice regarding the legal pack from a company such as Parachute Law.
Properties should always be viewed in person and advice sought beforehand. It is always wise to seek professional advice before bidding at an auction.