The 28-day deadline
At a traditional auction, contracts exchange when the hammer falls. You pay a 10% deposit on the day and usually have 28 days to complete. If you can't, you can lose the deposit and face claims for the seller's losses. That's why auction buyers use bridging finance rather than a mortgage.
Two to three weeks before the auction
- Shortlist lots and download each legal pack.
- Have a solicitor review the pack, or at least the special conditions and lease.
- Send us the lot details. We'll check lender appetite and get an agreement in principle.
- Arrange to view the property, ideally with a builder if works are needed.
- Set your maximum bid, including buyer's fees, stamp duty, legal costs and works.
On auction day
Bring your deposit and ID. If you win, you'll sign the memorandum of sale and pay the deposit. Tell us straight away so we can submit the full application the same day.
After the auction
The lender instructs a valuation. On houses and flats up to around £500,000, a desktop valuation can save several days. Solicitors on both sides then complete the legal work. We chase daily until completion.
Budgeting the costs
| Cost | Typical amount |
|---|---|
| Auction deposit | 10% of price |
| Buyer's premium / admin fee | Varies by auction house |
| Stamp duty | Including any surcharge for additional property |
| Bridging arrangement fee | around 2% |
| Valuation and legal fees | Depends on property and lender |
After completion: the exit
Most auction buyers either refurbish and sell, or refurbish and refinance onto a buy-to-let mortgage. Plan this before you bid. Read more in our exit strategies guide, or see auction finance.