Nine bargain properties to buy at auction for first-time buyers – and prices start at £5,000
IT'S no secret that getting on to the property ladder can be a tricky task for first-time buyers.
But if you're willing to take on a renovation project it's possible to buy your first home for as little as £5,000.
Buying a house at auction is one way of massively reducing the cost of purchasing your first property.
The cheapest deals on the market right now include a two bed end of terrace house for just £5,000 and a £10,000 cottage with three bedrooms.
These prices are less than what some people would have to save for a deposit.
There is a catch though, as most of the properties require extensive work rather than simply a lick of fresh paint.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa – It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan – The Government will lend you up to 20% of the home's value – or 40% in London – after you've put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you're restricted to specific ones.
Mortgage guarantee scheme – The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it's eligible for homes up to £600,000.
Prospective buyers should also consider that there will be extra costs involved in nabbing a deal at auction.
For example, you may have to cover solicitors fees that have not been factored into the price.
And that's before you've worked out a budget for making the house safe and pleasant to live in.
The prices listed on Zoopla are also just a guide price, and the house could sell for more than is advertised online.
The guide price is an indication of the seller's minimum acceptable price at auction.
Ahead of the auction you should try to view any properties you're interested in and ask plenty of questions.
You should also ask for a copy of legal documents that will outline what searches have already been done.
It's also important to set a budget and stick to it, to avoid overspending when it comes to renovations and decorating.
If you're not a cash buyer you might be able to secure a mortgage – but not all properties are eligible.
You should arrange a mortgage in principle before attending the auction by speaking to a bank or building society.
However, most lenders will only give you a mortgage agreement if the property is in a liveable condition – with a kitchen, bathroom and heating system.
Tom Parker, consumer spokesperson at property platform Zoopla said: “Buying a property at auction can be a great option for a first-time buyer, particularly as there are often great bargains on offer.
“However, it’s important to remember that there’s often more than meets the eye involved when buying an auction.
"To ensure you have a smooth process, arrange viewings and ask questions for any properties you’re interested in advance.
" Make sure you get a copy of the auction particulars, this should give you a sense of what searches have been carried out on the property and if you should ask a solicitor for further advice.
“Finally, decide your maximum budget and still to it. This is particularly important if you’re buying a property that will require extensive renovations.”
Two bed end of terrace house, County Durham – £5,000
This two bed property in Peterlee, County Durham is available with a guide price of just £5,000.
The property, which is up for auction online on July 8, benefits from aback garden.
The estate agent Taylor James Auctions said it is presented "in reasonable decorative order".
Two bed terraced house, Middlesbrough – £5,000
This property in Middlesbrough has two bedrooms, two reception rooms and a back garden.
It's up for sale by public auction on July 21 at 8:30, with potential buyers expected to register the previous day.
The auction will take place via proxy, telephone or internet only.
Two bed terraced house, County Durham – £5,000
This property, also in County Durham, will be up for sale by public auction on July 8.
It will be online via the estate agent's website with remote bidding.
The two bed end of terrace house is "in need of modernisation", and photos from the listing show there is serious work to be done to bring it up to scratch.
Three bed semi-detached cottage, Swansea – £10,000
This three bed cottage was formerly two properties that have now been interconnected.
Like the other properties listed for auction, it requires improvement works and modernisation or redevelopment.
The estate agent said the cottage could be a good buy to let or holiday let investment, due to its location near Brecon Beacons National Park, Swansea and the Gower.
Three bed terraced house, Darlington – £15,000
Potential buyers should be aware that this house has structural movement, which can cause cracking and other problems.
However, the estate agent said it has "huge potential" due to its location near local amenities and primary schools.
"Due to the works that would be carried out, you can treat this property as a blank canvas and a keen developer or investor with a good eye is sure to enjoy working on this one," the auction house said.
This three-bed in Darlington will be up for auction on July 20.
Two bed terraced house, Stoke-on-Trent, £15,000
Viewings for this two bedroom house in Stoke-on-Trent are already taking place ahead of the auction on July 21.
The house has a gas fired central heating system, UPVC double glazing and a back garden.
If you're interested you need to register to bid by midday on July 20 ahead of the livestreamed auction the next day.
Three bed terraced house, Hartlepool – £18,000
Most of the other properties on this list are for the freehold, but this is a leasehold offer, running for 999 years.
It is on a residential road close to local shops, and is near Hartlepool rail station and several green open spaces.
However, buying it would be even more risky as the estate agent is not allowing any internal viewings.
Two bed terraced house, County Durham – £18,500
This two bed property is in need of major refurbishment, but it is in a prime location for when it's done to your standards.
It's near Horden Railway station, linking the area with Newcastle, Sunderland and Hartlepool, and is close to parks, schools, shops and the coast.
The auction house said it would be a good buy-to-let investment opportunity.
Two bed terraced house, Cheshire – £19,000
A terraced property located in Crewe, with two bedrooms, two reception rooms and a kitchen with no fittings, is on the market for £19,000.
Upstairs there is a family bathroom, and the house also benefits from a rear yard.
The property is in need of refurbishment and requires extensive updating.
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