## Preparing Auction Investor Packs
Related check: [Stamp Duty Cash To Complete](/tools/stamp-duty-cash-to-complete).
Primary rule references for this decision are [GOV.UK making an offer guidance](https://www.gov.uk/buying-a-home/making-an-offer) and [HM Land Registry property information service](https://www.gov.uk/search-property-information-land-registry).
Property sourcers play a critical role in presenting investment opportunities, particularly in the auction market. This guide outlines the essential components and checks required for these packs, focusing on accuracy and completeness.
### Due Diligence Essentials
Before any offer is made, thorough due diligence is paramount. Buyers should verify property value, lease length if applicable, sale inclusions, and arrange for necessary inspections. Official property information, such as title number, ownership details, tenure, existing mortgages, restrictive covenants, and easements, can be obtained from HM Land Registry services. Integrating these checks into a structured workflow is beneficial. For example, a due diligence checklist might have 20 distinct checks. In a controlled scenario, 15 green checks (75%), 3 amber checks (15%), and 2 red checks (10%) indicate the status. The process requires that red items are resolved and amber items are either condition-dependent or result in price adjustments before proceeding.
### Financing Considerations
Understanding financing is key for investors. Bridging loans, defined by the FCA for its purposes as either MCD-exempt or a regulated mortgage contract with a term of twelve months or less, require careful consideration. For regulated bridging loans with a plan for mainstream mortgage repayment, lenders need reasonable assurance that a mainstream lender will agree to the contract. This assurance can be evidenced by a guaranteed offer, an agreement in principle, or complete income and expenditure information. When assessing finance, initial acquisition costs extend beyond the headline purchase price. Investors must also account for solicitor fees, property search disbursements, lender valuation fees, and Stamp Duty Land Tax (SDLT). Refurbishment costs are also critical; a reliable contingency fund, typically 10 to 15 percent of the build cost, is advised, alongside explicitly stated project management fees. A worked example for bridging finance costs can illustrate this: for a purchase price of £150,000, a £25,000 refurb budget, and a £112,500 bridge loan (75% LTV) at 1% monthly interest for six months, with a 2% arrangement fee and 1% exit fee, the estimated finance cost is £10,125 before other expenses.
### Pack Readiness and Verification
An investor pack's readiness is determined by its content and the verification of its components. A controlled example using an investor pack readiness checker, which examines core numbers, proof gaps, pack content, redactions, and closure steps, found 12 evidence checks. With 8 checks ready, 3 weak, and 1 missing, the pack achieved a 67% readiness score. The pack remains incomplete until the missing item is supplied and the weak items are either verified or clearly disclosed. These screening workflows are educational tools and do not replace the advice of instructed legal, survey, mortgage, or accounting professionals. The overall workflow for a property deal from listing to investor pack creation follows stages of import, underwriting, decision-making, and packaging or passing.