Buying a property is one of the biggest investments, particularly in London, where the cost of living and house prices are on the higher side.
While there are benefits of investing in London property, there are also a lot of factors to think about to make sure you are making the right decision.
Keeping that in mind, this guide explores the London market and presents the top five things that you must follow when buying a property in London.
1- Decide the Type of Property
There is a very wide range of property available in London.
The main types are:
- Flat or apartment: These are available in different sizes. In London, the concept of the maisonette and a maisonette is common. These types of flats have multiple layers and stairs.
- Terraced houses: These are the classic red brick homes. You can see them in Mayfair, Marylebone, and Northwest London.
- Detached houses: These are free-standing standalone houses. These are more expensive than flats and terraced houses.
- Semi-detached houses: These are houses paired together by a common wall. It is a good option for homeowners to purchase or rent.
- Bungalows: These are single-storey houses that have a wide hallway. These are generally cheaper to purchase.
2- Search Location
It is crucial to buy a property in an area where you can easily get all the resources, infrastructure, and transport system. Thankfully, London is best known for its transport system. It has major roads, underground, overground, train, and bus services.
Here are some of the best areas to buy a house in London:
- Central London: You can find good properties in Knightsbridge and Belgravia.
- South London: You can get a variety of houses here, including riverside London apartments and three-story terraced houses in Southbank and Battersea. There are other locations you can consider, such as Croydon, Bromley, Peckham, Wandsworth, and Lewisham.
- North London: Some of the popular areas to find property in North London are Camden, Islington, and Barnet. It is best suited to families as it has great schools, transportation facilities, and public green spaces.
- West London: Promising areas in West London to buy a property are Hammersmith, Fulham, Wembley, Richmond, Twickenham, and Kingston upon Thames.
- East London: You can find good value properties in East London. You check out areas such as Stratford and Newham.
3- Hire a Conveyance Service Provider
Finding property in London is time-consuming and involves a lot of legal work. Thus, it is better to hire a reputable and trustworthy conveyancing service provider, such as AVRillo Conveyancing.
They offer you expert buying advice from the beginning to the completion of the contract stage. They handle all the legal work, such as drawing up contracts, providing advice, and dealing with the money side of the purchase.
If you are hiring any other conveyancer then make sure that these conveyancers are certified by the Regulatory Authority or Council for Licensed Conveyancers or the Law Society.
4- Organize Finance
As per Zoopla ZED-index, the current average London house value is nearly £649,000.
Therefore, if you are planning to take out a mortgage, then start the process before you start searching for a home. It will help you to know how much you can borrow and avoid wasting time on houses that are out of budget.
Generally, banks allow you to borrow up to 4.5 times of your total annual income. In the case of a mortgage lender, you also need to consider factors such as credit rating, personal circumstances, and debts.
You can utilize the online comparison tool, Habito, to see how much you could borrow. It will give you a rough idea of the budget based on your annual income.
5- Learn About Housing Schemes if You Are a First-Time Buyers
Check if there are any housing schemes available for first-time buyers.
Here are a few good options available in London:
- London Help to Buy scheme allows first-buyers to apply for an equity loan of up to 40% of the value of the property.
- Another popular scheme in London is the shared ownership scheme. It allows you to buy between 25% and 75% shares in a property and pay rent on the rest.
- London Living Rent scheme is best for the middle-income group in London. Under this scheme, properties have below-market rents.
- First dibs for Londoners, an initiative announced by the Mayor of London Sadiq Khan in 2018. In this initiative, people who live in London for the first month of the property being market will be offered lower-cost new-build houses worth up to £35,000.
While buying a house, particularly in London, you must think of several factors and especially above five. Consider factors, such as locality, social infrastructure, quality of construction, a title deed, and resale value before buying a property.
Therefore, you should take enough time to decide whether to purchase a property or not. The best way is to hire a conveyancing service provider that can help you in the process of buying a house.