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Hello, welcome to the website. My name isXXXXX can assist you with this.
Woud you need a mortgage to assist you in this at all?
No, I would not.
Okay. Then if the seller of the property is agreeable, you could own it before you actually pay the money over. However, you would not be able to do this if you had needed to a mortgage from a professional lender.
From a contract perspective, you can generally agree to do anything that suits you. The problem you will have is that this is a little "out of the ordinary" and not many solicitors will have seen it done before.
Ah right okay.
Have you had any experience with auctions?
However, it's not to say you cannot do this - you can. I very much doubt a seller would be willing to do this though, if for no reason other than the solicitor is likely to sell them that they've not seen it before and there is no reason they should agree to do it in your case.
Yes, I have. And again, with auctions, you don't get the opportunity very often to seek to negotiate anything out of the ordinary.
The terms are usually set out in the prospectus which will require payment of a certain amount - pure and simple. If you're concerned about securing the property, you can do this now, by entering into a contract and then find the funds afterwards but that can obvious be a dangerous approach if you can't get the funds in the end you're still liable to buy the property.
If I went into that contract, would I legally be able to sell it on to someone else?
Or would I not own it until I completely pay for it?
You could in theory contract to sell it to somebody else, but until you actually own it, you can't sell it. If you do this, you could get yourself into a bigger mess, because you if you can't get the funds, you would be liable to buy and liable to sell ... a claim from both sides against you.
You wouldn't normally own it unil you've paid for it - but as I said, it's possible to do something different in legal theory, but in practical terms, in all honestly, you'll find it very difficult to do what you want.
Ah right, okay.
I've seen a property on an unsold auction site for £74,000 which I know is worth over £100,000
But I don't have £74,000!
Thats my problem, unfortunately.
The best thing, to be honest, is try and get a professional lender on board that's willing to lend you what you need.
It's the safest option.
Okay I'll try. Would I have to do this by a mortgage, or is there any other form of loan I could try?
Realistically, I expect it will have to be a mortgage. Again, in theory, anybody could loan you without security, but very few would give you an unsecured loan for so much money. Anything over £25-£30k these days is almost always secured by a mortgage.
Okay. Do you think it'd be worth asking the auction company what I originally asked you, for the legal contract which means I own the property before paying, with the condition that I have to pay within a certain amount of time? But like you say, its unlikely, isn't it?
Its such a good investment opportunity!
You can try .... and in reality they might agree to contract with you with you finding the money at the point of completion (maybe a month or two later), but that's different to legally owning it, but you would have agreed to legally own it once the money is paid.
Is there anything else you would like me to clarify for you about this?
Nope, I think thats all. I'll just have to leave it I think!
Thanks for your help.
Thank you. Are you happy with the service this evening please?
I am indeed. I'll select excellent service.
Thank you! XXXXX to you!
And you! :)