Am I the Right Age to Buy at Auction?

Property auctions tend to attract a lot of young investors as they see the potential to make money from renovating the properties that are on sale.

Different auction houses have different rules when it comes to who can and who can’t buy at auctions, so you should check with the auction house you plan to attend what theirs are.

Age Limits At Auctions

Most auction houses will require you to be at least 18-years old when you are buying a property. They will request that you bring some form of ID and they will want to see that you have in place your 10% to pay for the property on the spot. Auction houses can be daunting if it is your first time attending, so if you are just 18 it might be a good idea to take along some family members or family friend to give you that extra confidence.

Some auction houses, although less common, will impose and age limit of 21 for bidders. This is merely because they feel embarking on such a large transaction should not be undertaken before you are 21. When it comes to older bidders most auction houses do not have a limit as to how old a bidder can be.

Having said this though they will perhaps delve a bit more into your finances if you are in your late 80s and make a bid for a £500,000 property. They should however show discretion and treat elderly bidders in the same way as they would others.

Arranging Your Finances

You may be able to bid for your property at the auction but without the correct finance in place you are stuck. Mortgage lenders are becoming increasingly picky about who they will lend to and on what property. Some lenders hear the word auction and panic and decide they will not lend on the auction property.

Most mortgage lenders however are happy to lend on an auction property, but because they are becoming a lot stricter you might have problems obtaining a mortgage if you are under 21.

A lender will want to run affordability checks on you, which means they will scrutinise your income, personal expenditure and any debts you may have. If you are looking to use your property as a buy-to-let investment they will almost certainly not lend you the money until you are 21 years old at least.

Older bidders might also have similar problems, unless you are only looking to take out a very small mortgage, most lenders will not lend to you if you are over 75 and in some cases 70. They will also want to know that the property you are buying has no risks attached and will not go down in value over time. Depending on what type of property you want to buy at an auction this could cause problems.

Online Auctions

Most online auctions will require that you are 21 years old in order to bid for a property. There is no defined reason as to why they impose a higher age limit than some auction houses, but because the transaction is carried out online they will need to be a lot stricter in terms of who is bidding.

Property Auctions Overseas

When it comes to attending a property auction overseas it really does depend on the individual country. Most European countries will only allow over 18s to bid, but it has been known for some to go as low as 16. Countries such as America and Australia are a bit stricter and they will normally request that you are 21-years old at least.

Auction houses may seem appealing to first-time buyers but they can also be off limits to many younger and older bidders just because of the way the mortgage lenders view certain types of properties. A lot of it can also relate you how you feel mentally, you might be financially ready to buy a home at 18, but psychologically you might not be ready to take on the commitment,