When you have identified a lot you would like to bid for, you should always take the time to view the commercial property prior to auction. To arrange a viewing you should consult the auctioneer’s website and if you can’t find the details there you should contact them directly. In most cases 48 hours notice is required to arrange a viewing.
There are a number of factors you should take into consideration when viewing an auction property.
1. First impressions can be an indicator of whether the property is right for you. If you require the premises for business purposes, will it create the image you’d like for your business? If you are an investor and the property is vacant, how easy will it be to attract tenants?
2. While viewing you should, as far as possible, seek to ascertain the general condition of the building. Among other questions, you should ask yourself; are there any obvious defects? What is the standard of decoration? Are there any signs of damp? Is an asbestos report available?
3. Again, if you intend to use the property for your business, will it work for you? Is there enough space to conduct your business efficiently? Is it in an easily accessible location and is there adequate car parking for your staff and customers?
4. Another factor to consider is the facilities. Are there enough bathrooms for your staff and are kitchen facilities provided? If so, what is their condition?
This checklist is by no means exhaustive, but it gives you an indication of the importance of viewing a commercial property before making a bid at auction.
It is also strongly recommended that you hire a surveyor to assess the condition of the commercial property more closely. A surveyor will always act in your interest by offering clear, impartial advice that could prove invaluable.
A full structural survey will provide you with all the information you need about the building. It will highlight any major defects and comment on minor issues, giving you a clear picture of the condition of the commercial property. A surveyor will also recommend any specialist inspections deemed necessary.
Having full knowledge of the facts will help you determine your maximum bid for the property. Furthermore, depending on the results of the survey, you may decide not to bid after all thus sparing yourself a potentially costly repairs bill. So hiring a surveyor prior to bidding at auction makes sense as it will put your mind at rest and could save you money in the long term.
Considering SDLT on Auction Commercial Property