Property Auction Fees Calculator UK 2026
Calculate the true cost of buying property at auction — including buyer's premium, stamp duty, and fees
Typical: 2.5% + VAT (3% total)
Why Budget 15% Above Hammer Price
Property auctions can offer excellent deals, but the costs go far beyond the hammer price. Savvy investors budget 10-15% above their maximum bid to cover the additional fees and costs that come with auction purchases.
The Buyer's Premium: This is the biggest surprise for first-time auction buyers. Auction houses charge typically 2.5% + VAT (3% total) on top of your winning bid. On a £250,000 property, that's £7,500 added to your bill immediately.
Stamp Duty: Even with the 3% surcharge for additional properties, stamp duty still applies. Calculate this carefully before bidding — it's one of the largest additional costs.
The 10% Rule: Auction houses require a 10% deposit immediately upon winning, with the balance typically due within 28 days. Have your finances arranged before the auction day — mortgage offers for auction properties take longer and are more expensive.
Frequently Asked Questions
What is buyer's premium at UK property auctions?
The buyer's premium is a fee charged by auction houses on top of the hammer price. It's typically 2.5% + VAT (so 3% total). This can add thousands to your purchase cost and is payable immediately upon winning the bid.
How much deposit do I need at auction?
Most UK auctions require a 10% deposit immediately upon winning, paid by banker's draft. This deposit is non-refundable if you fail to complete, so ensure you have funds ready before bidding.
What additional costs should I budget for at auction?
Beyond the hammer price, budget for: buyer's premium (2.5% + VAT), stamp duty, legal fees (£1,000-£2,500), surveys (£400-£1,000), and potential bridging finance costs if you're not purchasing with cash.
Can I get financing for auction properties?
Yes, but it's more complex than standard mortgages. Specialist auction finance lenders can provide bridging loans or auction mortgages. These typically have higher rates and arrangement fees, so factor this into your calculations.
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