I have decided I want to buy a London property- what now?

We would always recommend that you start by organising your finances. It is vital that you know how much you can borrow, what size deposit you need and the commitments you are entering in to with your mortgage or loan.

We recommend contacting at least 2-3 financial advisors to ensure that you are being offered all available products and are getting the best offer that best suits your specific needs. One of these should be your personal bank however the other can be sourced online or through referral and recommendation from estate agents, family, friends or colleagues. Make sure you ask around, this is one of the most important factors of the entire buying process. Making the right choice can save you £000s and also a lot of stress and heart-ache.

Once you have finalised this, made a choice and have an ‘offer in principle’ you are ready to go looking at London property.

How do I know what I can get for my money when buying a property in London?

When you start talking to your bank or Financial Advisor you will very quickly get an approximate idea of how much you will be able to borrow.

Once you know this, and whilst your mortgage application is being processed, you can start to research the local London sales markets that are of interest to you. By using sites like findaproperty.com and rightmove.co.uk you can look at property listings that match your requirements and proposed budget in and around the areas that you are interested in in London.

Make sure that you pay particular attention to properties that are Sold or Under Offer as this will help you understand the realistic selling value of London properties. You can also research sold prices on sites like nethouseprices.co.uk or on the UK Land Registry.

This research is vital and can remove a lot of stress and anxiety by helping you to understand what you can get for your money in London, what areas are of interest to you and what types of London property pique your interests.

I am ready to start looking at London property- what should I ask about?

First decide if you are at all interested in the property- there is no point in asking hundreds of questions about a property you are never going to buy any way. If you are interested, then here are some questions we think are key:

It is first important to know if your property is Freehold or Leasehold (flats and apartments in London are usually sold on a leasehold basis). If the property is Leasehold make sure you ask:

• How long is left on the lease?
• How much are the annual Service Charges?
• What do the Service Charges include?
• How much is the Ground Rent?

Make sure you know what is included in the sale and what isn’t; this avoids any surprises when it comes to moving in.

Make sure you have a good look at the property to see if there are any maintenance issues or structural problems that may need addressing. If you spot anything, make sure the estate agent raises this as an enquiry with the seller. Also, this may mean that you should have a full structural survey before proceeding with a purchase (once an offer has been agreed upon) to ensure there are no major building defects that you may be unaware of.

It is also worth understanding the position of the seller. Are they keen to sell the property or just testing the market? Do they need to buy another property before they can sell (this is known as being ‘in a chain’) and, if so, have they found one yet? How long has the property been on the market? Have there been any offers yet?

My offer on a London property has been accepted, what happens next?

You now need to arrange the following as quickly as possible. Firstly, you must speak to your Financial Advisor and inform them that you have had an offer accepted on a London property. They will take details from you but will usually wish to liaise with the estate agent to get all the information and book a valuation/survey. You may have decided that you want a full structural survey if one is not provided by your lender- you need to get on the case. Many lenders nowadays just have valuations or basic inspections done; although an extra expense, this is often worthwhile as it can highlight any major issues hopefully avoiding unexpected costs in the future.

Now my offer’s been accepted, when can I move in to my new property?

This varies enormously according to the type of property (Leasehold/Freehold) and whether or not there is a chain of properties involved. As a general rule we advise clients that, from point of offer, a property sale will take approximately 2-3 months. Sometimes this is quicker but not by much and can take longer! Be prepared, the process is a lot slower than most people expect.

What is Stamp Duty Land Tax?

You pay Stamp Duty Land Tax on property like houses, flats, apartments, maisonettes, other buildings and land. If the purchase price is £125,000 or less you don’t pay any Stamp Duty Land Tax at all- but that is incredibly rare in London. If it’s more than £125,000, you pay between one and five per cent of the whole purchase price, on a sliding scale. In London, if you buy a property under £125K you have done very well! Otherwise, the tax brackets are as follows:

• £125,000-250,000- 1%
• £250,001-500,000- 3%
• £500,001-£1,000,000 4%
• £1,001,001- 5%

This will be payable on top of the property purchase price and will not be covered by your mortgage. Make sure you have adequate funds to cover this expense.

What other expenses are there when buying a property in London?

This will vary according to your personal circumstance but do consider all of the following expenses that you may need to cover after Stamp Duty:

• Solicitor Fees
• Local Searches
• Money Transfer Charges
• Mortgage Arrangement Fees
• Furniture
• Removals
• Cleaning
• Locksmith
• Maintenance & Repairs and any other considerations you may have…

…and don’t forget a nice bottle of something for your estate agent when the whole matter is done and dusted!