London property auctions offer unique opportunities to purchase residential and commercial real estate, often at competitive prices compared to traditional sales methods.
Buyers can find everything from apartments and houses to commercial buildings and development sites through auction houses like Allsop, Savills, and Barnard Marcus.
Understanding the auction process, conducting thorough due diligence, and having finances ready are essential steps for successful property auction purchases in London.
How London Property Auctions Work
Property auctions typically take place every 4-6 weeks at venues across London or online through virtual platforms.
- Auction catalogs are released 3-4 weeks before the auction date
- Properties can be viewed during scheduled open houses
- Legal packs must be reviewed before bidding
- 10% deposit required on auction day if successful
- Completion usually within 20-28 days
Major London Auction Houses
| Auction House | Contact | Specialties |
|---|---|---|
| Allsop | 020 7494 3686 | Residential & Commercial |
| Savills | 020 7824 9091 | Premium Properties |
| Barnard Marcus | 020 8741 9990 | Residential Properties |
Preparation Steps
- Register with auction houses to receive catalogs
- Arrange property viewings early
- Download and review legal packs
- Conduct property searches
- Arrange a survey if needed
- Secure funding before auction day
Financial Requirements
Buyers need proof of funds for the full purchase price plus fees before bidding.
- 10% deposit due immediately after successful bid
- Balance typically due within 20-28 days
- Budget 2-3% for auction fees and commission
- Consider legal fees (£1,000-£2,000)
- Factor in Stamp Duty Land Tax
Common Auction Properties
- Probate properties
- Repossessed homes
- Properties needing renovation
- Commercial buildings
- Development opportunities
Tips for Success
Set a maximum bid limit and stick to it strictly during the auction.
Visit multiple auctions as an observer before participating to understand the process.
Have a solicitor review the legal pack before bidding on any property.
Consider auction property insurance from the day of successful bid.
Smart Auction Strategies
Research recent sold prices for similar properties in the area to determine fair market value.
Check the reserve price and guide price – they often differ significantly.
Arrive early on auction day to register and get comfortable with the environment.
Consider using a proxy bidder if unable to attend in person.
Next Steps After Success
- Pay deposit immediately
- Arrange buildings insurance
- Instruct solicitor for completion
- Organize surveys if needed
- Plan renovation work if required
Making Your Purchase Count
Remember that auction purchases are legally binding – there’s no cooling-off period.
Keep all documentation from the auction house and legal pack safe for future reference.
Consider joining property auction networks or forums to share experiences and learn from others.
Auction Property Management
Managing an auction property purchase requires careful planning and coordination of various aspects.
- Create a timeline for completion tasks
- Coordinate with utility companies
- Arrange access and key collection
- Schedule any immediate repairs
- Update property documentation
Financing Options
Traditional Mortgages
Standard mortgages must be arranged well in advance of the auction date with a firm offer in place.
Auction Finance
Specialist short-term loans can bridge the gap until longer-term funding is secured.
- Quick approval process
- Higher interest rates
- Flexible terms available
- Usually 3-12 month duration
Common Pitfalls to Avoid
Be aware of these potential issues when buying at auction:
- Underestimating renovation costs
- Insufficient due diligence
- Missing critical legal pack details
- Getting caught up in bidding excitement
- Not having contingency funds
Maximizing Your Auction Investment
Success in London property auctions comes from thorough preparation and disciplined execution of your strategy.
Build relationships with auction houses and property professionals for future opportunities.
Keep detailed records of your auction experience to refine your approach for future purchases.
Consider joining property investment groups to share knowledge and potentially partner on future projects.
FAQs
- How do I find property auctions in London?
Property auctions can be found through major auction houses like Allsop, Savills, and Barnett Ross, as well as online platforms such as Essential Information Group (EIG) and Rightmove’s auction section. - What deposit do I need for a London auction property?
A 10% deposit is typically required on the day of auction when the hammer falls. The remaining balance is usually due within 20-28 working days. - Can I get a mortgage for an auction property in London?
Yes, but you’ll need to have the mortgage agreement in principle before bidding, as completion is typically required within 28 days of the auction. - What legal checks should I do before bidding at a London property auction?
Review the legal pack thoroughly, including title deeds, local authority searches, property information forms, and any lease documents. It’s advisable to have a solicitor review these documents. - Are auction properties in London cheaper than market value?
Not necessarily. While some properties may sell below market value, competitive bidding can drive prices up. Guide prices are often set low to attract interest. - What additional costs should I consider when buying at auction in London?
Consider buyer’s premium (usually 2% of purchase price), legal fees, stamp duty, survey costs, and auction house administration fees. - Can I view the property before the auction?
Yes, auction houses typically organize open house viewings in the weeks leading up to the auction. It’s strongly recommended to view the property and have a survey done. - What happens if I’m the highest bidder at a London property auction?
When the hammer falls, you’ll need to sign the contract and pay the 10% deposit immediately. You’re legally bound to complete the purchase within the specified timeframe. - Can I bid online for London property auctions?
Yes, many auction houses now offer online, telephone, and proxy bidding options, especially since the pandemic. - What types of properties typically come up at London auctions?
You’ll find a mix of residential, commercial, mixed-use properties, development opportunities, and properties that might be unmortgageable through traditional means.
