5 things hidden in auction legal packs that cost buyers thousands

1. Restrictive covenants

A restrictive covenant is tied to the land itself — it follows the property forever. Common covenants prevent converting a house into flats, building extensions beyond a certain size, or running a business from the property.

What to do: Check whether the covenant is likely to be enforced and whether indemnity insurance is available.

2. Short leases

If a leasehold property has under 80 years remaining, mortgage lenders will often refuse to lend against it, and extending the lease becomes significantly more expensive.

What to do: Check the lease length first. If it is under 80 years, get a lease extension valuation before bidding — it can run to five figures.

3. Chancel repair liability

Some properties carry a historic liability to contribute to church chancel repairs. It can amount to thousands of pounds and attach without warning.

What to do: Check whether a chancel search was carried out. Indemnity insurance is usually cheap and provides full protection.

4. Title defects and missing documents

Gaps in the chain of ownership or missing title documents create title defects that can make a property unmortgageable or very difficult to sell.

What to do: If the title register shows possessory title rather than absolute title, take specific legal advice.

5. Drainage and flood risk

Private drainage carries ongoing maintenance costs. Flood risk zones can make buildings insurance expensive or impossible to obtain.

What to do: Read the search results in full, not just the cover summary.

All five of these issues are in the legal pack — just written in dense legal language. That is exactly what Before The Hammer is built for. Upload the pack and we will flag these risks in plain English in around five minutes.