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🔴 Critical — Must Check
These are the issues that most commonly derail auction purchases or cost buyers thousands they didn't budget for.
CRITICAL
1. Any seller legal fees payable by the buyer
Check Special Conditions carefully for any clause requiring you to pay the seller's solicitor costs on completion. These can range from £1,500 to £12,000 and are legally binding.
↳ Where to look: Special Conditions · usually Clause 2, 3 or 4
CRITICAL
2. Title guarantee — full, limited, or none
No title guarantee means you have zero legal protection if title defects emerge after completion. Common in lender sales and repossessions. If limited or no guarantee, cash only is likely.
↳ Where to look: Transfer Deed (TR1) · Box 8 / Special Conditions
CRITICAL
3. Lease length (if leasehold)
Most lenders require 85+ years on the lease at completion. Under 80 years: mortgage very difficult. Under 70 years: usually cash buyers only. Extending the lease costs £8,000–£30,000+.
↳ Where to look: Lease · Schedule 1 or first page
CRITICAL
4. VAT applicable to the purchase
Commercial properties where the seller has opted to tax attract 20% VAT on the purchase price. A £300,000 property becomes £360,000. This is rarely mentioned in the lot description.
↳ Where to look: Special Conditions · VAT clause
CRITICAL
5. Completion period and your ability to meet it
Standard CAC completion is 20 working days. Many lots are 10 or 14 days. If you need mortgage or bridging finance, confirm you can complete in time — failure triggers daily interest penalties.
↳ Where to look: Special Conditions · completion clause
🟡 Warnings — High Importance
These don't necessarily kill the deal but have significant cost or legal implications you must understand before bidding.
WARNING
6. Late completion interest rate
Check what interest rate applies if you miss completion. Standard is 4%, but Special Conditions often impose 6–8% per annum. On a £200k property at 6%, that's £33/day.
↳ Where to look: CAC G10.3 or Special Conditions
WARNING
7. Unadopted roads and private access
If the road serving the property is not adopted by the local authority, you as the owner share responsibility for its repair and maintenance costs. Check the LLC1 search result.
↳ Where to look: Local Authority Search · LLC1 / CON29 Q2.1(a)
WARNING
8. Restrictive covenants on the title
Covenants can restrict development, alterations, use, or subletting. Old covenants (even from the 1900s) can be enforced. Some may require indemnity insurance to mitigate.
↳ Where to look: Title Register · Section C entries
WARNING
9. Overage / clawback clauses
The seller takes a percentage of any future planning uplift in value, typically over 10–25 years. Affects your exit strategy and the property's marketability to future buyers.
↳ Where to look: Transfer Deed · Schedule 2 or Special Conditions
WARNING
10. Missing building regulations certificates
Extensions, loft conversions, garage conversions, electrical work — all should have completion certificates. Missing regs require indemnity insurance at the buyer's cost and can affect mortgageability and resale.
↳ Where to look: Property Information Form (TA6) · Section 7
WARNING
11. Ground rent and review clauses (leasehold)
Ground rents that double every 10–25 years make properties unmortgageable and unsellable. The Leasehold Reform Act 2022 restricted new ground rents, but older leases are still affected.
↳ Where to look: Lease · ground rent provisions
WARNING
12. Planning enforcement notices or disputes
An open enforcement notice is a serious risk. It can require demolition or cessation of use, and it runs with the land — not the owner. Check the local authority search carefully.
↳ Where to look: Local Authority Search · CON29 Q3.7
WARNING
13. Flood risk classification
High flood risk affects insurance costs, mortgageability, and future resale. Check the environmental search and the EA flood map. Properties in Flood Zone 3 are high risk.
↳ Where to look: Environmental Search or EA Flood Map
✅ Standard — Always Verify
These are standard checks that apply to every auction purchase regardless of property type.
STANDARD
14. Confirm the tenure — freehold or leasehold
The title register confirms tenure. Never assume from the lot description — houses are occasionally leasehold, and "share of freehold" is different from freehold.
↳ Where to look: Title Register · A Section
STANDARD
15. Confirm registered owner matches seller
The proprietor in the title register must match the seller or have a clear chain of authority (e.g. executor, lender). Mismatches can cause Land Registry rejection.
↳ Where to look: Title Register · B Section (proprietorship)
STANDARD
16. Check all searches are present and dated
Searches more than 6 months old may not reflect current position. If searches are missing, you inherit the risk. Mortgage lenders require up-to-date searches at completion.
↳ Where to look: Legal pack document list
STANDARD
17. Confirm completion deposit amount
Standard is 10% on auction day. Some lots require a fixed deposit. Confirm you have funds available on the day — you cannot bid without the deposit.
↳ Where to look: Special Conditions · deposit clause
STANDARD
18. Check for existing charges or mortgages
Existing lender charges should be redeemed on completion. If not clearly addressed in the pack, query with the auctioneer before bidding.
↳ Where to look: Title Register · C Section (charges)
STANDARD
19. Occupation — is the property vacant or tenanted?
If tenanted, check the tenancy type, rent, and any rental arrears. Periodic AST tenants are easier to deal with; statutory tenants have stronger rights. Arrears become your problem.
↳ Where to look: Special Conditions or Property Information Form
STANDARD
20. Calculate your total acquisition cost
Add up: hammer price + deposit + SDLT + auction admin fee + any confirmed buyer costs from Special Conditions + your legal fees + survey. This is your real cost, not the guide price.
↳ Use the Max Bid Calculator in LegalPack AI
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