Lot 23, 14 Station Road, Weldon Bridge (fictional example)

1. Executive Summary

This lot presents a High risk profile for an inexperienced bidder, though it may suit a cash purchaser experienced with tenanted HMO stock. The headline findings are:

1. The special conditions transfer £4,830 of the seller's costs to the buyer on top of the hammer price, and impose a 10-working-day completion. In practice this restricts the lot to cash buyers.
2. A restrictive covenant on the 1962 conveyance prohibits use other than as a single private dwellinghouse. The property is currently let as a 5-bed HMO. There is no evidence of covenant release or indemnity insurance in the pack.
3. No local authority search is provided. For a property of this age and use, this omission is significant and should be treated as deliberate until explained.
4. Two of the three tenancy agreements provided are unsigned, and no deposit protection certificates are included.
5. The EPC is rated E and expires in four months; HMO licensing status is not evidenced.

Before bidding, the enquiries at Section 9 should be raised with the auctioneer, in particular the covenant position, the missing search, and the HMO licence.

2. Property Identification & Tenure

The property is 14 Station Road, Weldon Bridge, registered at HM Land Registry under title number WB123456 with title absolute. It is a freehold mid-terrace house, converted (date unknown) into a 5-bedroom house in multiple occupation. The registered proprietor is Weldon Property Holdings Ltd, registered 11 March 2019.

3. Title Analysis

The register discloses:

• A registered charge dated 14 June 2021 in favour of Bridgegate Finance plc. The special conditions confirm the sale is with vacant title on completion; the charge will be discharged from proceeds. Standard.
• A restrictive covenant contained in a conveyance dated 3 May 1962: "not to use the property or any part thereof otherwise than as a single private dwellinghouse." The current HMO use is on its face a breach. The pack contains no indemnity policy, no evidence of release, and no statement of the seller's position. A neighbouring owner with the benefit of the covenant could in principle seek an injunction or damages. This is the most significant title issue in the pack.
• A right of way on foot over the rear passageway shared with Nos. 12 to 20, maintainable in common. Unremarkable, but note the fencing obligation below.
• The 1962 conveyance also imposes a fencing obligation in respect of the rear boundary.

4. Leasehold Analysis

The property is freehold. No leasehold considerations arise.

5. Occupancy & Tenancies

The pack states the property is sold subject to and with the benefit of five assured shorthold tenancies producing £2,340 per calendar month in aggregate. However:

No gas safety record, EICR, or how-to-rent acknowledgements are provided. Unprotected deposits expose the buyer (as incoming landlord) to penalty claims of one to three times each deposit and restrict service of s.21 notices. Obtaining vacant possession, if desired, is likely to be slow and contested.

6. Special Conditions of Sale

The special conditions materially amend the common auction conditions in the seller's favour:

Completion is required within 10 working days of exchange, with interest at 8% above base on late completion. The seller excludes liability for the accuracy of the tenancy schedule. Condition 27 permits the seller to rescind if unable to answer requisitions: an unusual and one-sided provision.

7. Searches, Planning & Compliance

Provided: drainage & water search (satisfactory), environmental screening (low risk). Not provided: local authority search. This would reveal enforcement notices, HMO licensing conditions, road schemes and planning breaches, precisely the risks most relevant to this property. Its absence from an otherwise professionally assembled pack should be treated as a red flag until explained.

No planning permission or building regulations completion certificates are provided for the HMO conversion. The EPC is rated E (42), expiring in four months; note that an E rating is the current minimum for letting.

8. Financial Summary

Gross yield at guide (£28,080 p.a. on £185,000) appears attractive at ~15%, but is not reliable: the tenancy schedule is unevidenced, the covenant may prevent the very use generating the income, and the compliance position requires immediate spend.

9. Missing Documents & Pre-Bid Enquiries

In priority order, the bidder or their solicitor should require:

1. The seller's position on the 1962 restrictive covenant: release, insurance, or explanation of 60+ years' HMO use.
2. The local authority search, or the reason it is withheld.
3. The HMO licence and any conditions attached.
4. Signed ASTs for all five rooms and deposit protection certificates.
5. Gas safety record, EICR, and how-to-rent evidence.
6. Planning/building regulations history for the conversion.
7. Confirmation of what Condition 27 (seller's right to rescind) is intended to cover.

10. Risk Assessment & Recommendation

Risk rating: High.

The combination of an on-its-face covenant breach, a withheld local authority search, an unevidenced tenancy schedule and £4,930 of transferred costs makes this lot unsuitable for a first-time auction buyer or any purchaser requiring mortgage finance (the covenant point alone is likely to fail lender requirements, and the 10-day completion is impractical for mortgaged purchases).

For an experienced cash investor, the lot may still warrant interest at a price that reflects the risk, but only after the Section 9 enquiries are answered. If the covenant position cannot be resolved before auction, the prudent course is not to bid.