London is one of the most happening places in the UK. Amazing landscapes, world-famous attractions, great job opportunities – there are thousands of reasons why people come to live in London. With over 8 million residents, London is also one of the most expensive cities to live in. Although the average property prices are quite higher than other UK cities, more people are willing to invest in properties in London. If you are thinking of buying a home or any kind of property in London, we have put together eight useful points that will help you get started with your investment.
1. Decide on your property type
You may have already decided about whether you are looking for a residential or commercial property. Now, you need to decide what property type will suit your needs. Whether you are looking for a 1-bed studio or 4-bed spacious apartment, or commercial offices or large warehouse space – what type of property you are willing to buy will be influenced by how much space you need and how much you can afford.
You may also want to consider whether you would prefer to buy a newly build home or old property. With original construction and features, older homes draw attention of many home buyers. They may be available at a lesser price than new homes. Brand-new homes may offer smart home features, but they can be significantly expensive.
2. Find your dream property
Another obvious step towards purchasing a property in London is to find one. Properties in London are hard to find. The market moves quickly and the property may get sold even before you realise. You can look for properties through property site searches or contact local estate agents to help you find a property in your desired location.
Create a list of areas you would be interested in based on your preferences, such as entertainment and nightlife, transport links, commute time, nearby schools, green spaces, property types and so on. Once you find your dream property, move on to the next step.
3. Work on your budget
With London property prices rising at an exponential rate, it is essential to get a good idea of how much you can afford right from the beginning. You will need to do the sum and work out on what amount you are willing to put of your own. Remember to add costs, such as property survey fees, new furniture, renovation work, packing materials and conveyancing fees.
In addition, you should also factor monthly or annual expenses that you will need to pay once you occupy the property. These costs can include utility cost, maintenance and repairs, property tax, house insurance, home warranty plan an emergency fund in case of unexpected property repairs and maintenance.
4. Check available funding options
Once you know how much money you can put, work out on how much you will need to borrow. You may be able to get some funding from friends and family, but there are certain financial instruments that enable you to raise money for property purchase. This is true for both first-time buyers and existing home buyers.
One way to secure your dream property quickly is by opting for bridging finance in London. It enables you to raise a large sum of money instantly for a short term. Once you purchase your home, you can repay the bridging loan by remortgaging it to a longer-term finance or when your previous home is sold. It is advisable to speak with a specialist financial advisor to discover the best available option.
5. Make an offer
Once you have found your perfect property, now you can make an offer online or through an estate agent. However, knowing exactly how much to offer can be tricky. Usually people put an offer below asking price, but it all varies from property to property. If the property is hot in the market or other people are showing their interest, then you may have to pay the asking price – as well bridging loan rate
Look for what other properties in the neighbourhood have been sold for recently, which will help you understand the value of property in that area. Once you have decided on your offer price, you can inform the seller directly or through an agent.
6. Hire a solicitor
After you have found out an ideal property and figured out funding options, the next step is to contact a solicitor. Hiring a solicitor is an important aspect of the property buying process as the solicitor will assist you with all the legal procedures involved. A solicitor will also help with the due diligence process and make sure there are no issues or potential disputes with the property.
By hiring a lawyer, you can rest in confidence that your property purchase transaction is being handled by a legal professional. They will work to protect your rights, ensure a smooth transfer of ownership and will offer valuable advice based on your specific circumstances. Altogether, a solicitor will ease the entire buying process, which is otherwise quite complex and tiresome.
7. Exchange of contracts
The exchange of contracts is the time at which the property transaction becomes legal under the British law. Both seller and buyer can withdraw from the transaction only before this point. Once the contract has been exchanged, both the parties are obliged to complete the process. That means the seller is obliged to hand over the ownership of the property to the buyer, and the buyer is supposed to pay a deposit of 10% of the property price.
A date of completion will also be set and legal paperwork should be ready. Bear in mind that withdrawing after the contract has been signed will subject to penalties.
8. Complete the process
This is the final step of the buying process. Once you make full payment to the seller, the process is completed. You will also need to pay the associated fees, the lawyer will complete all the legal formalities and the property will be registered in your name at the Land Registry.
Conclusion
Property purchase in London is a big decision and it should be done with utmost care. The London property market is competitive and offers many options. We advise you to speak with a specialist financial advisor before you make any financial decision. We hope you found this property development loan London buying guide helpful and you are prepared to make your next property purchase.