The UK capital of London is endowed with some of the most sought after addresses in the world, magnificent parks, the best schools, as well as world-class cultural and shopping experiences. When you throw in the fact that it is one of the most significant financial centres in the world, then you begin to understand why London is very attractive to individuals who are out to make investments in luxury properties in the UK.
Just Us Global has put together the 3 top tips when it comes to purchasing property in Central London.
The Top Three Tips On Purchasing Property in London
- Freehold or leasehold?
According to English land law, all properties are either owned on a leasehold or freehold basis. By the year 2015, almost all (about 95%) of the new properties in the city of London fell under the leasehold ownership. These were mostly apartments used for residential purposes.
When buying a leasehold property, one has to take a lease from the landlord before going ahead to utilise the property for a specific period of time. Leases are normally long term, in most cases between 90 to 125 years. However, they can also be for periods as long as 999 years or as short as 40 years.
Whenever you are buying a leasehold property, you will normally have to pay other rates such as:
Service as well as maintenance fees for areas which are common or shared, like
- The stairwells and the security front desk.
- Ground rent
- A premium for extension of the lease
- Part of the property’s insurance
You may also have to get permission from the landlord before carrying out any major renovations in the property.
On the other hand, when buying a freehold property, you have to purchase both the property and the land on which it sits. This is beneficial in that, after you get the local authority permission plus any other particular restrictions regarding the title deeds of the property, you will be free to institute any changes that you may deem fit on the property.
- Choosing the Right Real Estate Agent
There are several real estate agents in the city of London. However, if you are planning to buy a luxury property in the city, then it means that you are ready to invest millions of pounds. Therefore, you wouldn’t want to take chances by picking any estate agent that you come across. It would be prudent to take your time in order to find who is not only properly qualified but also experienced in the processes involved in selling and buying of luxury properties in London. This way, you can be sure of securing a good deal.
- Expert Due Diligence
You need an experienced property solicitor to conduct due diligence before finally putting pen to paper to finalise the transaction. In the UK, this is done before the transaction is finalised in order to allow the involved parties to conduct renegotiations or even pull out of the deal, especially if gross anomalies, with the property on sale or with its titles, are discovered. Due diligence includes verification of the property title, getting a proper survey, getting information from the buyer and the seller as well as reaching an amicable agreement on the contract terms.