Author: numan
What is the difference between freehold and leasehold?
When you buy a property in England or Wales, you’re not just buying bricks and mortar — you’re buying a legal interest in the land. The two most common forms of ownership are freehold and leasehold, and the difference between them has significant legal and financial implications.
Understanding this distinction is vital when buying at auction, where leasehold properties are common and may come with additional risks or obligations.
What is freehold?
If you own a property freehold, you own:
- The building, and
- The land it stands on,
- Indefinitely — there is no time limit.
You are responsible for maintaining the property, but you do not pay ground rent or service charges to a landlord. Freehold is the simplest and most complete form of ownership.
Typical freehold properties:
- Detached houses
- Semi-detached houses
- Terraced houses
What is leasehold?
If you own a property leasehold, you have:
- The right to occupy the property for a fixed number of years (e.g. 99, 125, or 999 years),
- Under a legal lease agreement with the freeholder (also called the landlord),
- Subject to certain restrictions and ongoing payments.
You do not own the land or the building itself — just the lease.
Why does this matter for auction buyers?
You will typically have to pay:
- Ground rent to the freeholder.
- Service charges to maintain communal areas, buildings insurance, cleaning, etc.
- Contributions to major works on the building.
Leasehold properties are common in auctions — especially flats, maisonettes, and mixed-use buildings. But they can carry significant risks:
- Short leases reduce value and mortgageability.
- Unexpected charges or arrears may not be disclosed in full.
- No LPE1 form or lease summary is often provided in the auction pack.
- You may have limited ability to extend or alter the property.
- Some leases contain onerous clauses (e.g. escalating ground rent).
Summary
Freehold means you own everything. Leasehold means you own the right to live in the property for a fixed period, with obligations to a freeholder. If you’re buying at auction, always confirm the ownership type and review the lease terms carefully. At Versus Law, we specialise in identifying leasehold risks and helping clients make informed auction decisions.
What if the property is unregistered?
Most properties in England and Wales are now registered with HM Land Registry, which provides a centralised and guaranteed record of ownership. However, some properties — particularly older ones or those that haven’t changed hands for decades — are still unregistered.
Buying an unregistered property at auction involves additional risks and responsibilities, and it’s vital that you understand what this means before you bid.
What does “unregistered” mean?
An unregistered property:
- Has no digital title record at HM Land Registry.
- Is instead proven by a collection of original deeds, contracts, conveyances, and documents — often referred to as the “root of title.”
- May not have an up-to-date plan showing the property’s boundaries.
The buyer is responsible for first registration after completion — a process that must be done to legally own and deal with the property going forward.
What can special conditions include?
- Missing deeds: If key documents are lost, it can be hard to prove ownership or boundaries.
- Boundary disputes: There may be no clear plan confirming what land is included.
- Undisclosed rights or easements: You may be unaware of rights of way, covenants, or third-party interests.
- Mortgage difficulties: Many lenders are cautious about lending on unregistered properties.
- Longer conveyancing timeframes: Title must be reconstructed from old paperwork.
Auction sellers sometimes include a statutory declaration to support the title if deeds are missing — but this is not a guarantee of good title.
What you should do
Before bidding:
- Have your solicitor examine all available deeds and documents carefully.
- Check that there’s a clear, credible chain of ownership going back at least 15 years.
- Ensure a title plan is included or can be reliably reconstructed.
- Be prepared to register the property yourself with the Land Registry — which involves extra legal work and fees.
At Versus Law, we are experienced in first registration of unregistered land and can assist in identifying risks in the deeds before you commit.
Summary
Buying an unregistered property adds complexity and risk. Without a Land Registry record, you’re relying on old paperwork — and if anything is missing or unclear, it may affect your ability to prove ownership or secure finance. Make sure your solicitor checks the title thoroughly before bidding, and be ready for the extra work involved in registration.
What if I discover a title defect after the auction?
When you buy a property at auction, you are committing to purchase it on the terms set out in the legal pack, whether or not you fully understand those terms. If you discover a title defect after the auction, you are generally bound to complete the purchase, regardless of the issue.
What is a title defect?
A title defect is any legal issue affecting the ownership or marketability of the property. Common examples include:
- Missing rights of access or unclear boundaries.
- Unregistered title, or gaps in the chain of ownership.
- Restrictive covenants that limit how the property can be used.
- Easements or rights of way benefitting other parties.
- Charges or restrictions registered against the title.
- Absence of title plan or supporting deeds.
These issues may not prevent ownership — but they can reduce the value, affect resale, or make obtaining finance more difficult.
Can you back out?
In most cases, no. The standard auction conditions (and the special conditions) will usually state:
- The buyer has had the opportunity to inspect the title.
- The buyer accepts the title “as it is”.
- No further enquiries or objections can be raised after the hammer falls.
This means you cannot withdraw from the contract or demand a price reduction — even if a serious defect comes to light later.
Are there any exceptions?
A limited number of exceptions may apply if:
- The seller has deliberately misrepresented the title.
- The contract includes a clause requiring good title and the defect prevents this.
- The seller refuses to remedy a known defect that they undertook to resolve.
Even then, legal action is needed — and timeframes are extremely tight.
How to protect yourself
- Instruct your solicitor to review the legal pack before bidding.
- Do not rely on the auctioneer’s description alone — they may not be aware of title issues.
- If something in the title looks unusual or unclear, do not bid until it’s resolved.
- Be cautious of unregistered land, especially if supported only by a statutory declaration or handwritten deeds.
Summary
Buying at auction means accepting the legal title warts and all. If a defect is discovered after the auction, you will almost certainly still have to complete. This is why legal pack review is critical — and something we specialise in at Versus Law.
What are Special Conditions of Sale and why are they important?
In every auction sale, the contract consists of:
- The Common Auction Conditions (4th Edition) — standard legal terms agreed by most auctioneers and solicitors, and
- The Special Conditions of Sale — unique, property-specific terms that override or supplement the standard conditions.
The Special Conditions are where the seller’s solicitor can add specific obligations, fees, timeframes, and restrictions. These terms are often buried in legal language, but they can have a significant impact on what you pay and how the transaction proceeds.
What can Special Conditions include?
- Buyer to pay the seller’s legal fees, search fees, or auctioneer’s administration charges.
- Reduced completion periods, e.g. 14 days instead of the usual 28.
- No guarantee of key handover, vacant possession, or clearance of contents.
- Requirement to insure the property immediately after exchange.
- Indemnity requirements — where the buyer must purchase an indemnity policy (e.g. for missing consents or rights of way).
- Liability for ground rent, service charge, or major works, sometimes even if they relate to periods before completion.
Why are they important?
- The Special Conditions override the general rules. That means:
- They can impose extra costs or obligations that are legally binding.
- They can reduce your legal protections as a buyer.
- You are expected to have read and accepted them before bidding.
- Even if you miss them — or don’t understand them — you are still bound once the hammer falls.
Some common (and potentially costly) clauses include:
- Extra costs
- Short timeframes
- Existing tenancies or possession issues
What you should do
At Versus Law, we routinely identify hidden risks in Special Conditions and flag them to our clients before auction day.
- Ask your solicitor to review the Special Conditions in the legal pack before bidding.
- Look carefully for anything unusual — particularly clauses about:
- Extra costs
- Short timeframes
- Existing tenancies or possession issues
- Do not rely solely on the auctioneer’s summary — always read the legal documents in full.
Summary
The Special Conditions of Sale are where the real terms of the deal are set out. They often include hidden costs, unusual requirements, or buyer liabilities. Always read them carefully — and have your solicitor check them — because once you bid, you’re legally committed to everything they say.
Can I get a survey after the auction?
Technically, yes — you can commission a survey after the auction — but doing so at that stage is too late to influence the transaction. Once the auctioneer’s hammer falls, you have already exchanged contracts and are legally committed to buy the property as it stands.
Any issues discovered after that point — including serious structural problems — will not allow you to renegotiate or withdraw without serious legal and financial consequences.
What does a survey do?
A survey (or building inspection) can:
- Identify structural defects such as subsidence, damp, rot, or roof issues.
- Flag issues with electrics, plumbing, or heating systems.
- Provide a professional valuation, giving insight into whether you’re paying a fair price.
- Highlight hazards (e.g. asbestos, unsafe loft conversions, or illegal extensions).
There are different types of surveys:
- Condition Report (basic)
- Homebuyer Report (standard)
- Full Building Survey (detailed, especially useful for older or non-standard properties)
Why it’s risky to wait until after the auction
If you buy first and survey later, you take on the full risk. For example:
- If the survey reveals serious structural issues, you still must complete the purchase.
- You may need to pay for urgent or costly repairs immediately.
- If you’re using a mortgage, the lender might down-value the property or refuse funding — but you’ll still be liable to complete.
In some cases, buyers end up with a non-mortgageable or uninhabitable property, which cannot be let or resold without major work.
Best practice
- Commission a survey before the auction, especially for older, unusual, or visibly damaged properties.
- Combine it with a legal pack review to get a complete picture.
- If time is limited, you can sometimes obtain a desktop valuation or walkaround inspection to flag major concerns quickly.
Summary
Getting a survey after the auction may help you understand the condition of your purchase, but it will not give you any right to cancel, renegotiate, or delay. If you’re buying at auction, the time for surveys is before bidding, not after — and our team at Versus Law can help coordinate this process efficiently if you’re working to a tight timeline.
Has the property had planning permission or building work?
In standard purchases, the seller is usually required to disclose whether the property has had any structural changes or extensions, and whether those works were properly authorised. In auction sales, this information is often missing or incomplete, and the buyer must carry out their own investigations.
Why this matters
If the property has been extended, converted, or structurally altered, you need to know:
- Was planning permission obtained?
- Was Building Regulations approval granted and certified?
- Is there any risk of enforcement action or safety issues?
Works carried out without permission may lead to:
- Enforcement notices from the local authority.
- Issues with insurability or mortgageability.
- Difficulty selling the property in the future.
Auction risks
- The seller often does not supply full planning or building records.
- You may see mention of alterations, but with no evidence of approval or compliance.
- There may be no warranties, indemnities, or guarantees provided.
- You buy as seen, meaning the legal and practical risks transfer to you.
- If you buy and later discover unauthorised works, you may have no recourse against the seller.
What you can do
Before bidding:
- Check the legal pack for planning documents or Building Regulations certificates.
- Visit the local council’s planning portal to see if any applications have been made.
- Instruct a surveyor to identify signs of structural alterations or extensions.
- Be cautious about any “loft conversions,” rear extensions, or garage conversions that are not backed by clear documentation.
Summary
If the property has been altered, you need to confirm that all permissions and approvals were properly obtained. In auction purchases, this is rarely guaranteed — and if you buy without confirming it, the risk becomes yours.
What comes with the property – appliances, furniture?
In standard property transactions, sellers usually complete a TA10 Fittings and Contents Form, which lists what is included and excluded from the sale — such as white goods, curtains, carpets, and garden items.
However, in auction sales, this form is rarely provided. That means there may be no guarantee about what will remain in the property after completion.
What might be included?
- Built-in items such as kitchen units or integrated appliances are generally expected to remain.
- Freestanding items (e.g. fridge, washing machine, furniture) are usually removed — unless clearly stated otherwise in the auction legal pack or special conditions.
- Fixtures, such as fitted wardrobes or curtain poles, may or may not be included — the seller is not obliged to confirm.
Key points to be aware of
In many cases, especially with vacant or repossessed properties, the property is sold as seen, with no representations made about contents.
- Do not assume anything will be left behind unless it is specifically mentioned.
- You may be left with nothing but the bare structure — or conversely, the property may be left with unwanted rubbish or furniture, and you will be responsible for clearing it.
- The auction contract often includes a condition that the buyer accepts the property in its current state, including whatever is left or removed.
Summary
In auction sales, there is usually no list of contents provided. You must assume that nothing comes with the property unless clearly stated in the auction pack. If certain items are important to you, you should either inspect the property beforehand or treat the risk of removal as part of your due diligence.
What is an EPC and why does it matter?
An Energy Performance Certificate (EPC) is a legally required document that rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). It provides prospective buyers or tenants with information about the property’s energy use and typical energy costs.
Why is it important?
- Legal Requirement: An EPC is mandatory when a property is built, sold, or rented.
- Energy Efficiency Rating: The EPC shows how energy-efficient the property is, which can influence energy bills.
- Recommendations: It includes suggestions for improving the property’s energy efficiency, which can help reduce energy costs.
- Validity: An EPC is valid for 10 years.
EPCs in auction sales
In auction sales, the EPC is typically included in the legal pack. However, it’s essential to check that the EPC is present and up to date before bidding. If it’s missing or outdated, you may be buying without full knowledge of the property’s energy efficiency.
How to find an EPC
You can search for an existing EPC by postcode, street name, town, or certificate number using the official UK government service:
Find an energy certificate – GOV.UK
Summary
An EPC provides crucial information about a property’s energy efficiency, potential energy costs, and suggestions for improvement. In auction purchases, ensure you review the EPC before bidding to make an informed decision.
What are property searches and do I need them?
Property searches are checks usually carried out by your solicitor to find out important information about the property that wouldn’t appear on the title deeds or from a simple inspection.
What do they reveal?
Searches can uncover issues such as:
- Planning permissions, enforcement notices, or other restrictions.
- Whether the property is affected by road proposals or nearby developments.
- Water and drainage connections, including if the property is connected to mains services.
- Environmental risks, such as flood zones or contaminated land.
- Whether the property is subject to Compulsory Purchase Orders, listed status, or tree preservation orders.
Are they needed in auction purchases?
Yes — but there’s a key difference:
In a normal purchase, your solicitor would order these searches before exchange of contracts. In an auction, contracts are exchanged the moment you win the bid, so it’s too late to carry out searches after the auction.
That means:
- If the legal pack includes searches, you need to read them carefully.
- If they are missing or out of date, you’re buying the property without full information.
- You can’t ask for searches to be done or updated after the auction — the seller has no obligation to assist.
What’s the risk?
Buying without full searches means you may later discover:
- The property is affected by planning issues or legal restrictions.
- There are problems with access, drainage, or rights of way.
- You can’t develop or use the property as intended.
These risks become your responsibility once you’ve exchanged.
Summary
Property searches provide critical information — but in auction sales, they are often incomplete or missing. You should always review the legal pack for any included searches before bidding, and understand the risks of proceeding without them.
Why haven’t I received a TA6 form?
In most standard property transactions, the seller provides a TA6 Property Information Form. However, in auction sales, it is very common for the seller to not include this form in the legal pack.
Why is it missing?
There are several common reasons why the TA6 form is not provided in auction sales:
- The seller may not have lived in the property, such as in the case of a landlord, company, or executor of a deceased estate — so they are unable or unwilling to answer detailed questions about its history.
- Auction properties are sold “as seen”, with minimal representations or warranties from the seller.
- The auction process assumes that buyers conduct their own investigations before bidding, rather than relying on the seller’s information.
What does this mean for you?
- You will have less information about the property — including past disputes, alterations, flooding, or boundary issues.
- You cannot raise enquiries after the auction — you accept the property based on the documents provided at the time of bidding.
- You are expected to rely on your own due diligence — legal review, inspection, and survey — before bidding.
This increases the risk for buyers, especially if the legal pack is incomplete or unclear. But once the auction ends, the contract is binding regardless of what information was or wasn’t provided.
Summary
You haven’t received a TA6 form because it is not usually supplied in auction sales. Sellers are not required to provide it, and often can’t or won’t. You must therefore rely on the legal pack and your own checks — and accept that some questions may remain unanswered.