Where it is
Lenders know London and the Home Counties best, and lend most readily there. Outside, values need strong local evidence. They look at transport, and at anything nearby that pulls values down: a railway line, a busy road, a takeaway parade or industrial land.
What it is
- Leases: under 80 years left, extending costs more; under 70, many lenders decline; under 60, specialists only
- Construction: concrete, timber-frame or steel-frame buildings need specialist lenders
- Flats: very small flats, flats above takeaways and some ex-local authority blocks narrow the choice
- Occupancy: works need vacant possession; a regulated or sitting tenant lowers the value a lot
- Designations: listed buildings and flood zone 3 are major points; conservation areas and tree orders are checks
The evidence
Comparables decide the value. Lenders want sales of similar homes, close by and recent: a two-bed flat is evidenced by two-bed flats, and a house nearby is weak evidence for a flat. Each lot shows its closest comparable sales, graded Strong, Moderate or Weak with the reason.
What is missing
A lender will ask for anything the catalogue does not say: the floor area, the lease length, whether it is let. Each finance view lists these as information a lender will need first, so you can find them before you bid.
See it on a real lot
Every lot on Auction Watch has a finance view and a calculator that opens on the loan that fits it, with indicative terms on screen in a minute.
This guide is general information about how auction finance usually works in the UK. It is not financial, legal or tax advice, and rates and limits change. Your property may be repossessed if you do not keep up repayments on a loan secured on it. Auction Watch is not a lender and does not give financial advice. If you ask for terms, we pass your details to lenders and brokers we work with, who may pay us a fee for the introduction; they make their own decisions and offers. If you are buying a home to live in yourself or for your family, that is a regulated mortgage: we only introduce you to a firm authorised by the Financial Conduct Authority.