Every property sold at auction comes with a legal pack, but too many buyers skip the fine print until it’s too late.
If you’re using auction finance, the legal pack can make or break your application — lenders rely on it to assess risk, verify ownership, and spot potential issues before approving funds.
Here’s how to read and use the legal pack to your advantage.
What Is a Legal Pack?
A legal pack is a collection of documents prepared by the seller’s solicitor that gives potential buyers full visibility before the auction.
It includes essential information like ownership details, local authority searches, and special conditions of sale.
Auction finance lenders use this to confirm the property is a sound security for lending
What’s Inside a Typical Legal Pack
Here’s what you’ll normally find:
- Title Deeds – Confirms legal ownership and any restrictions.
- Searches – Local authority, drainage, and environmental checks.
- Special Conditions of Sale – Additional costs or clauses you agree to by bidding.
Energy Performance Certificate (EPC)
- Tenancy Agreements – For buy-to-let or mixed-use properties.
- Planning Permissions – Shows any approved or pending development rights.
- Fixtures & Fittings List – What’s included in the sale.
Each item gives lenders confidence about the property’s legal status and value.
Why It Matters for Auction Finance
Lenders use the legal pack to identify:
- Ownership clarity (no disputes or restrictions)
- Charges or covenants that affect resale
- Lease terms (short leases often impact lending)
- Tenancy structure (especially HMOs or commercial lets)
- Outstanding costs or service charges
If the pack reveals high-risk issues, lenders might reduce the loan amount, add conditions, or decline the case altogether.
Red Flags That Can Affect Lending
Be aware of:
- Short leases under 70 years
- Missing searches or outdated EPC
- Title restrictions (easements or access rights)
- Non-standard construction
- Unregistered property
If any of these appear, don’t panic — a specialist auction finance lender may still proceed, but you’ll need a strong exit plan or extra security.
How to Use the Legal Pack to Negotiate Better Terms
Tip: Send your legal pack to your broker and lender before bidding.
This allows them to pre-assess and approve the property, often resulting in:
- Faster completion (less due diligence later)
- More favourable loan terms
- Lower perceived risk
Being proactive can make your lender see you as a low-risk, professional borrower — which means better rates and faster funding.
The Role of Your Solicitor
Choose a solicitor familiar with auction timelines. They’ll:
- Review the legal pack before the auction
- Flag any red flags immediately
- Liaise with the lender’s legal team to fast-track exchange
Solicitors experienced in auction finance can often help complete within 7–10 working days after the hammer falls.
Case Studies
Case Study 1 – Lease Issue Identified Early
An investor in Leeds shared the legal pack with us before auction day.
The title revealed a 67-year lease, which could have blocked lending.
We pre-arranged a lender happy to proceed with a short-lease product, securing terms within 24 hours of winning the bid.
Case Study 2 – Missing Search Resolved Quickly
Client in Nottingham purchased a property missing drainage searches.
Because the issue was flagged early, our solicitor obtained the search within 48 hours — allowing a 14-day completion instead of the usual 28.
Case Study 3 – Non-Standard Construction
A Birmingham buyer spotted “non-standard construction” in the legal pack.
Instead of losing the deal, we matched them with a lender specialising in steel-frame properties, completing in 10 days.
FAQs
Ans: Yes. It’s essential for both your protection and lender approval.
Ans: Usually yes — specialist lenders can still proceed with the right structure or exit plan.
Ans: It’s free to download from the auction house’s website once you register interest in a property.
Ans: Absolutely. They can identify red flags that may stop a lender or delay completion.
Ans: Sometimes, yes. Many auction finance lenders allow dual representation to save time and costs.
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