For those looking for a home or a commercial property in London, the overall process can be daunting. Buying a London Property can be extraordinarily complicated with hidden fees, mounds of paperwork, and strange jargon that will puzzle even the most savvy shopper. Buyers need to understand how the buying process works and whether or not they can afford the property they are interested in.
Where to Start
The first step in purchasing a piece of property for the buyers understands what they can afford. If the property is not for investment, but for a residence, most home buyers are able to obtain a loan that is five times their income, if their credit ratings are good. Having a poor credit rating will reduce the amount the buyer can borrow, and the bank may decline someone with a poor credit rating. However, being approved for a loan before shopping for a home will improve the chances of being able to purchase a place in London.
Loans and Expenses
Those who choose a loan should plan on putting 20 percent down and take out a loan for the remaining 80 percent. This way the buyer is unlikely to owe too much on the loan should the home actually lose value.
There are other fees associated with buying a property. There are the lawyers’ fees, surveys, the stamp duty, and the conveyancing fees. Buyers need to compare London conveyancing quotes when considering how much they will need to pay in fees.
Searching for the Right Property
Those who already rent in London will recognize that buying a house is a lot like renting a house in London, only it is more complex, has more paperwork, and the buyer will be paying more people. Most people start their search for the right property online and quickly learn the keywords and phrases that estate agents use to make the property sound better than it is. Buyers should meet with estate agents when they can so that they can understand the current market. Beware of properties that have been for sale a long time. There is usually something wrong with them, or the price might be too high. Meeting with the estate agent keeps the buyer fresh in the agent’s mind when a potential property comes on the market.
The buyer needs to call and contact the agent when the buyer finds a potential property. Try to arrange a private viewing rather than a group viewing. Buyers should take pictures with their smart phone of all the properties they visit so that they can keep the properties straight in their minds. Try out all the appliances, the water, and look for problems such as mold, heater issues, or faulty electrical wiring.
Buying the Property
Once the buyer has settled on which property to buy, they need to make an offer. That offer should be either the asking price or below the seller’s asking price. The seller may come back with a counter offer. At that point, the bank will require a survey and conveyancing to determine whether the seller actually owns the property. Buyers should compare London conveyancing quotes to be certain that they are not paying too much in fees. Conveyancing takes about six weeks. It can take longer if there are issues concerning the ownership.
Once the conveyancing is done and the lawyers have finished their work, the date will be set for completion. Assuming no catastrophes occur, the seller will get their money and the buyer will receive the keys and ownership.