UK Property Auction Advisory Service - Harold Benjamin
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POCKET GUIDE UK Property Auction Advisory Service
Who we are Our team
Founded in 1953, based in the West End of London Our Auctions services are headed by Vijay Parikh.
with an office in Harrow-on-the-Hill. Widely Him and the team work alongside our already
acknowledged as one of the UK’s leading law well established and renowned Real Estate and
firms specialising in commercial and residential Commercial Property team. Their vast experience
property advice across the UK. of the auction sector, combined with the legal
Noted for applying progressive, innovative and expertise of Harold Benjamin, allows our Auction
dynamic thinking combined with a genuine advisors to provide a bespoke service to both
and active interest in helping clients meet their clients and investors alike, who may be considering
individual needs. buying or selling commercial or residential
property at auction.
Clients include national and international
corporations, private property companies, banks, They can offer pre-sale advice, helping identify
major national developers and builders, private suitable properties for purchase at auction as
companies, listed and unlisted public limited well as by private treaty, advising on the auction
companies and professional, leisure, retail and process itself and bidding in the room on behalf of
educational organisations. both experienced and new entrants to the market.
The legal team can also help buyers review the
legal papers prior to bidding and deal with the
conveyancing once a property has been bought.
Varsha Sood Since being set up, the service has already acted
Partner successfully for a number of bidders in various
020 8872 3028 auction rooms and helped prospective purchasers
varsha.sood@haroldbenjamin.com source suitable properties for investment.
London office:
020 7224 0888
Harrow office:
020 8422 5678Auctions & their benefits Auctions checklist
• The UK Property Auction business has developed Identify the properties of interest.
over the past 40 years from being the method
of last resort to being an extremely efficient If possible attend a viewing and if necessary
method of sale and one which should be arrange a structural /survey.
considered for all types of property up to a lot
size of about £10 million. Ask questions of the auctioneers with regard
• For a Vendor, it’s major benefit is not only the to other interests.
speed of sale, knowing that completion can take
place within eight to ten weeks from confirming Have the legal documentation reviewed.
instructions, but it is also the certainty that
it offers, with an immediate contract on the Check the Addendum/Changes to the
fall of the hammer, with no last minute re- property information – before bidding it is
negotiations, often encountered with private important to look out for any last minute
treaty transactions. changes that may affect the property.
• For Receivers and Executors, an auction can Check with the auctioneers if the seller will
ensure that the best price is seen to be achieved agree a sale prior to the auction.
on the day and that a much wider market can be
accessed, than more conventional methods of Finance – if you are successful in bidding,
sale can reach. you will be required to provide a 10% deposit
• For buyers, the fact that an auction sale will on the day of the auction. The balance is
generally include from 30 to over 100 properties due on the day of completion. Therefore you
for consideration, a much wider choice is must ensure that you have confirmed your
available than might otherwise have been financial arrangements for completion before
available by private treaty. you bid.
• Buyers can see for themselves if there is any
competition in the auction room and once the Check if a buyer’s premium is payable.
sale has started, there is no chance of being
“gazumped”, which can sometimes happen by If you cannot attend the auction there are
private treaty in a rising market. a number of options including telephone
bidding or online or proxy bidding. A member
• Bidders who cannot attend the auction, can also of our team can also attend the auction and
bid by telephone or via the Internet or use our bid on your behalf.
Auction Advisory Service to ensure they get the
best chance on the day.Day of the auction Legal documentation
Make sure you arrive early and remember to bring At the drop of the hammer the sale is secured.
with you: Cheque book; Identification: photo ID You will be contractually and legally bound to
(preferably passport) and proof of address (bank complete the purchase of the property irrespective
statement or utility bill not more than 3 months old). of any title or legal defects.
The sale will be progressed in the order that the The seller’s solicitors will prepare a legal pack
lots appear in the auction catalogue. Some lots consisting of special conditions of sale (this forms
may not be included in the sale as they may have part of the auction contract), title documents,
been withdrawn or sold, so it is important to check copies of occupational leases, searches and replies
that the lot you are interested in is still available. to enquiries.
Addendum – it is imperative that you check the It is imperative that you have the legal papers
printed addendum which will note any changes reviewed prior to bidding to avoid any nasty
that may have occurred since the catalogue was surprises later. There have been countless
printed. This will form part of the contract. The examples of buyers successfully bidding for a
addendum may contain material information property and reviewing the papers subsequently.
including any correction in rent payable, Typical examples of problems that we have
disclosures of tenants’ break clauses, changes encountered include:
to length of leases etc. It is, therefore, a very • The buyer is obliged to pay the seller the
important document. tenant’s arrears on completion.
Bidding – The auctioneer will invite bids. You can • VAT is actually payable on the purchase price.
make your bid by raising your hand. It is important
to make your bids clear and to get the attention • The tenant has exercised their option to
of the auctioneer. The property will be sold to the terminate their lease.
highest bidder (provided the reserve is met or • The property has no benefit of direct access.
exceeded). • Lack of planning for the current use.
On the fall of the hammer – if the hammer falls • Local authority enforcement action.
and you are the highest bidder, you have bought
the property. You will be given a card to complete • The upper parts of the property that the buyer
with your details and your solicitor’s details. At this thought were vacant were actually let or vice
stage you will be asked for a deposit cheque in the versa.
sum of 10% of the price. You will then be asked to • Rent review is not upward-only and can
sign the memorandum of sale and handed one potentially go down.
part of the auction contract.
If you do not already have a firm of solicitors
In the event that you are not successful or the acting for you, we would be delighted to help.
reserve price is not met you should register your
interest with the auctioneers who will ask the seller
to consider an offer post-auction.FAQ’s
Does “VAT applicable” mean that I have to pay What does FRI mean?
VAT on the purchase price and therefore find Full Repairing and Insuring. The term is used to
an extra 20% per cent? show that the tenant is fully responsible for repairs,
Not necessarily. The auction contract may provide both internal and external and also for payment
for the buyer to benefit from the Transfer of Going of insurance and other costs in respect of the
Concern regulations. Provided that the property is property.
let on a commercial lease and conditions are met What does rental top up mean?
(including being registered for VAT and electing You would normally see this where a property has
the property for VAT) you will not be required the benefit of a fixed rent increase in the future.
to pay VAT on the purchase price. Please ask The seller may top up the rent by allowing the
a member of our team for specific advice. buyer the difference between the current passing
When do I have to complete? rent and the future fixed increased rent.
The completion date will be contained in the Do I need to insure the property?
contract. Typically it will be 28 days from the date This depends upon the conditions contained
of the auction date or contract date. However, in the occupational lease. Generally the landlord
this time can be either longer or shorter. insures and therefore as the new owner, yes.
I want to complete in a different company However, in some circumstances the tenant will
or name. Is this possible? insure the property. It is important to obtain a copy
The party noted on the contract as the buyer of the insurance for your records. We will assist
is the party required to complete the transaction. in this process.
Any changes will have to be with the consent of
the seller and at their sole discretion.
“Vijay and his team at HB have acted for a number
I live abroad and need help managing the of our buying and selling clients who, we know,
property what do you suggest? respect them greatly. Their reputation, built up over
Many of our clients live abroad. It is important that many years, has spread by word of mouth. In the
you appoint a trusted managing agent who will fast moving world of property auctions our clients
need a legal team that understands how to deliver
look after the collection of rent and will inspect the
a sale or purchase on time, efficiently, professionally
building. The majority of these management costs and to budget. Vijay and his colleagues are that
would usually be recoverable under the terms team. John is a powerful addition to that team,
of an FRI lease. Please contact a member of our being one of the most influential and successful
team if you need assistance in finding a managing commercial property auctioneers of this generation
agent suitable for your needs and requirements. and one of the best-known faces in the market. He
delivers real world advice and pragmatism with
not just an in-depth knowledge of the bricks and
mortar but also of the people behind the deals. John
regularly successfully represents HB buying clients in
our auction room”.
RICHARD AUTERAC, ACUITUSWho we work for Auctioneers directory
259 City Road Ltd Allsop LLP
Alexander McQueen 33 Wigmore Street
Allied Irish Bank London W1U 1BZ
Banner Homes Ltd
Balenciaga
www.allsop.co.uk
Bellwood Homes Group Contact: Mark Gower
Boucheron Email: mark.gower@allsop.co.uk
Bouygues (UK) Ltd Tel: 020 7543 6727
Bread Factory
Byrne Group Residential Ltd
Cavanna Homes (South West) Limited
Christopher Kane
Comer Homes Group of Companies Acuitus
Countrywide Group 14 Christopher’s Place
Davis Estates (Southern) Ltd London W1U 1NH
Fonehouse www.acuitus.co.uk
Gail’s Bakeries
Groveworld Group of Companies Contact: Richard Auterac
Hamptons Email: richard.auterac@acuitus.co.uk
Harcourt Developments Ltd Tel: 020 7034 4850
Headmasters
Jaysam Contractors Ltd
JS Bloor Homes Ltd
Kier Living Ltd
Ladbrokes Coral Group
Mackenzie Homes
Matthew Homes Limited
Martin Grant Group of Companies
Metro Bank
NatWest/Royal Bank of Scotland Plc “I have known and worked with Vijay and the Harold
Orion City Road Trustee Limited Benjamin team for many years and we share a wide
Picturehouse Cinemas Ltd number of clients. Being a former auctioneer, John
Pomellato is a great addition to the team and his role assisting
Roksanda Illinic clients with their acquisitions complements the
Sherrygreen Homes Ltd services they are able to offer commercial auction
Taylor Wimpey UK Ltd clients very well. I have always found everyone in
Tesco Stores Ltd (Residential Estate Development) the Harold Benjamin team very approachable
The Flour Station and helpful and would happily recommend their
Turner Properties Ltd/ATA Estates Ltd services”.
Vivienne Westwood
MARK GOWER, ALLSOP
Wallis Road Developments Ltd
Westcombe
YaccoMaricardHarold Benjamin Solicitors Hygeia Building 66-68 College Road Harrow, HA1 1BE T: 020 8422 5678 60 Queen Anne Street London W1G 8HP T: 020 7224 0888 enquiries@haroldbenjamin.com www.haroldbenjamin.com FIND US ON SOCIAL MEDIA @hb_solicitors HaroldBenjamin Harold Benjamin hb_solicitors
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