What to Look For in Auction Legal Packs: A Buyer's Checklist
What to Look For in Auction Legal Packs: A Buyer's Checklist
Buying property at auction is exciting, but the compressed timeline means due diligence happens fast. The legal pack is your most important document — and the place where costly surprises hide. At BelowHammer, our AI analyses thousands of legal packs every month. Here is what we look for, and what you should too.
1. Special Conditions of Sale
Auction houses often add non-standard terms. We see clauses that:
- Extend completion from the standard 28 days to 56 days
- Charge extra fees to the buyer (not the seller)
- Restrict resale or rental for a set period
Red flag: Any condition that shifts risk or cost to the buyer without a matching discount in the guide price.
2. Title and Ownership Issues
Check the Official Copy of Register. Look for:
- Restrictions – does the lender need to consent to the sale?
- Charges – are there multiple mortgages or unsecured loans registered?
- Unregistered land – rare now, but it adds weeks to completion
3. Leasehold Checks
If the property is leasehold, confirm:
- Remaining lease term (sub-80 years makes remortgaging difficult)
- Ground rent escalation clauses (some double every 10–25 years)
- Service charge arrears
Our data shows leasehold flats with short leases sell at auction for 20–40 % below market value — but the cost of a lease extension can swallow that discount entirely.
4. Planning and Building Compliance
Look for:
- Lack of Building Regulation sign-offs on extensions or conversions
- Unapproved Change of Use (e.g., commercial to residential)
- Party-wall disputes
These issues do not always kill a deal, but they affect insurability and resale. Price them in.
5. Tenancy and Occupancy
Is the property sold with vacant possession, or subject to tenancy?
- Vacant possession – verify the seller can actually deliver it
- Tenancy in situ – review the tenancy agreement type. Assured shorthold is manageable; regulated or protected tenancies are not
- Squatters – if mentioned, budget for legal eviction costs and delays
6. Local Authority Searches
Not every legal pack includes an up-to-date local search. If it is missing, budget £200–400 and 2–4 weeks to order your own. Key risks buried here:
- Proposed road schemes
- Contaminated land notices
- Enforcement actions for unauthorised works
How BelowHammer Helps
Our AI reads legal packs in minutes, flagging risks and estimating completion costs so you can bid with confidence. Every listing on our platform includes an AI-generated analysis — clear, concise, and written for property investors, not solicitors.
Browse current auction lots and see the difference a thorough legal review makes before you raise your paddle.