Homes across northern England to be auctioned with nil or £1 guide prices

A total of 26 homes with rock-bottom guide prices of nil or £1 are going under the hammer at Bond Wolfe Auctions’ next auction in Birmingham on Wednesday 11 December.

The low prices are on properties from County Durham, Cumbria, Doncaster, Grimsby, Hartlepool, Liverpool, Newcastle, Rotherham, Saltburn and Sunderland. The bargain tags have been tied to the lots because most are boarded up, in need of a full programme of refurbishment or only available for external viewings.

Gurpreet Bassi, chief executive of Bond Wolfe Auctions, said: “These properties obviously need substantial investment, time and effort to return them into decent homes, but for the right investors they could be among the best bargains of 2019.”

In Yorkshire, houses listed at nil include a three-bedroomed mid-terrace at 33 Princess Crescent and a two-bedroomed mid-terrace at 12 Great Central Avenue, both in Doncaster, and a two-bedroomed mid-terrace at 12 Beever Street in Rotherham. There is also a two-bedroom terraced house at 33 Errington Street in Saltburn listed with a nil starting price.

Read why Doncaster has a new image: https://www.yorkshirepost.co.uk/lifestyle/homes-gardens/doncaster-smartens-up-its-act-as-investors-watch-with-interest-1-9017424

North East lots

Nine of the properties listed at nil are in County Durham and include a two-bedroomed end-terrace at 9 Henry Street South in Murton, Seaham, and a two-bedroomed mid-terrace at 12 John Street, Eldon Lane, in Bishop Auckland. Another two bedroomed, mid-terrace listed at nil is at 79 Collingwood Street in Coundon in Bishop Auckland, although this one enjoys current rental income of £5,720 per annum. Other County Durham houses listed at nil are neighbouring three-bedroomed mid terraces at 4 and 5 Argent Street in Peterlee, along with others at 4 Twelfth Street in Hordern and 26 Dodds Close in Wheatley Hill, Durham.

County Durham properties with £1 guide prices are a two bedroomed mid terrace at 23 Brook Street in Bishop Auckland and a three-bedroomed mid-terrace at 13 Margaret Street in Ludworth. Over in Hartlepool there are seven houses listed at nil reserve including two-bedroomed mid-terraces at 13 Fourth Street, 94 Oxford Road, 13 Stephen Street and 11 Cameron Road, three-bedroomed mid-terraces at 6 Hepscott Avenue and 180 Burbank Road, and a three-bedroomed end-terrace at 25 Cornwall Street.

Other north-east bargains listed at nil include two-bedroomed mid terraces at 5 Humber Street in Newcastle upon Tyne, 15 Ewe Hill Terrace in Houghton-le-Spring and a three-bedroomed mid-terrace at 16 Hastings Street in Sunderland. More northern England houses with bargain prices include a two-bedroomed semi-detached at 11 Primrose Court in Liverpool and a three-bedroomed mid-terrace at 57 Harold Street in Grimsby, both with £1 guide prices, and a two-bedroomed mid-terrace at 210 Moss Bay Road in Workington, Cumbria, listed at nil.

Mr Bassi explained that despite the low guide prices, prospective owners would still have to pay the standard auction administration fee of £1,074 including VAT for each property and each property is likely to increase in price as the bidding on each lot progresses.

He added: “It’s useful to list certain properties in need of renovation at £1 or nil as a nudge to get the right bidders involved, but we’ve never had an auction with as many as 26 houses at these low prices. This range of bargain properties is likely to attract strong interest from potential buyers on the day.”

The northern England properties are just 26 of 164 lots that will be offered on December 11 at what is the largest property auction to be held in the Midlands in 2019. Anyone interested in the auction or with properties for sale in future auctions should contact [email protected], call 0121 312 1212 or visit www.bondwolfeauctions.com.

Tips on buying a property at auction

*Note that once the hammer falls, the buyer is locked into a legally binding arrangement and will be expected to pay 10 per cent of the purchase price immediately and the other 90 per cent within 28 days.

*There may also be a buyer premium to pay to the auction house. This can be a £1,000 fee on lots sold for £10,000 or more. VAT may also apply and Sellers may also have additional fees so check the conditions of sale on your lot.

*Getting a mortgage offer on an auction property can be difficult. Most banks and building societies are also loathe to lend on a property deemed uninhabitable. There are specialist finance providers, though their interest rates and fees are higher than a residential mortgage.

*Always view the property. You can then assess the location and the condition of the building.

*The duration between an auction being announced and the sale is between four to six weeks. This gives you just enough time to exercise due diligence. Request the legal documents from the agent, get a solicitor to check them over and get a survey.

*Do your sums and add a 15 to 20 per cent contingency for a property that needs renovation as they almost always come in over budget. It is very easy to get carried away in the heat of the moment but stick to your maximum price when bidding. If the reserve price is not reached and the property is withdrawn from the auction, there may still be a chance to buy. Approach the auctioneer after sale ends and ask if it is possible to buy by private treaty. If you ask what the reserve was and try and get as close as possible to it, you may stand a good chance of securing a deal.