Q&A: Sealed bids, second home insurance

Your property questions answered

The average price paid for home insurance has fallen to its lowest levels in at least a decade, according to the Association of British Insurers (Joe Giddens/PA) (PA Archive)

Q. I am interested in selling my house by sealed bids. It is a listed building in a very desirable part of a West Country town and is in good repair at present. I own the freehold outright. How do I go about selling in this way?

J Anderson, by e-mail

A. This process is best managed through an estate agent and is usually only used when a number of people are interested in buying a property. A deadline is set, by which potential purchasers will have viewed the property and submitted a bid in writing. You can then decide which bid to acept. Depending on how fast you want to sell, it may not necessarily be the highest bid you accept, but one from the person who is most financially sound or who can move the most quickly. You should be aware that sealed bids are viewed as unfair by some people, especially those who are unsuccessful, and some estate agents may not be keen to use this method of selling a property if they have been subjected to legal action regarding a sealed bid. You could consider asking your estate agent to hold a private auction, where everyone who has shown interest is invited, or instruct one of the large property auctioneers to be included in one of their regular local auctions.

Q. We recently bought a second home in Scotland but I have found it really hard to get is insured – not because of any problems with the property itself, just because most companies don't seem to be set up for covering second homes. Although it isn't our main residence, it is never unoccupied for more than 30 days. Given that there is a boom in second-home ownership, what does everyone else do?

Lucy O'Leary, by e-mail

A. Not all companies offer insurance for second homes in the UK, but there are a few that specialise. The Association of British Insurers suggests approaching Andrew Copeland (020-8656 8435) or Holgate Insurance (01708 438000) for quotes for building and contents insurance. The greatest risk, and therefore the higher premium, is for properties which are unoccupied for more than 30 days. However, the cost will depend on the postcode and to whom the property will be let. If it is let through a professional lettings company on a six-month tenancy agreement the premium is likely to be similar to an owner-occupied property.

If you would like a query answered on buying or selling a property, e-mail: propertyq&a@independent.co.uk. Only those questions featured will be answered. Any advice given will not be legally binding

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