With its unique architecture, London is a city filled with galleries, museums, a sense of fashion, and alternatives for food and drink. It’s also one of the most significant real estate markets in the world.
You can meet people from all over the world and from different cultures in London. That makes London real estate quite popular. Thanks to increased government support and mortgage options, buying property in London gets easier.
Buying Property in London
Located around the Thames River, London is the most cosmopolitan city in the UK. Living in London allows you to interact with many different cultures.
Intertwined With History and Culture
London is also an ideal route for historical and cultural events. There are many landmarks like Big Ben, the London Eye, the Tower of London, or the River Thames. Buying a house in this beautiful city with order and system is no longer a dream.
A Lush City
Although London is a bustling city, not everywhere is covered with residential areas. Every neighborhood has parks where you can walk and play sports. Thus, London real estate is on the rise with many more properties.
Quality of Life
Climate and weather conditions are also important factors when it comes to buying a property in London. This is because London is a rainy place and the skies are grey most of the time. This is especially valid during the winter months. Although it may seem a little depressing, the vibrancy of London is enough to open your heart.
Advantages of Buying a Property in London
There are many benefits to buying a house in London. But, it makes sense to buy the right house in the right way. Of course, under your criteria and economically at the right time. The UK is one of the countries that grant residency.
According to UK Finance data, new mortgage offers for first-time homebuyers in London are on the rise. The government even has a scheme for first-time homebuyers called Help-to-Buy. Attractive mortgage options from banks are also keeping demand alive.
Buying a property in London can offer you many benefits:
- A forward-looking investment in an established market,
- The opportunity to own a property in one of the most prestigious and popular regions in the world,
- High rental yields,
- Properties that are easy to sell after-sale,
- Investments that increase the credibility of the client.
What to Expect When Buying Property in London
Set your expectations very well first, cheque what you’re investing for. Plan an investment for at least five years against the rising or falling prices, not the short-term returns. Don’t just think about the buy. Consider the extra taxes, legal fees, financial advisor fees, and costs payable to the council, too.
There are two ways when buying a property in London; Freehold or Leasehold,
If you buy a property with the Leasehold method, it will be yours for 100 to 1000 years. The land of the property isn’t owned by the buyer, and you must pay an annual fee for the land. It’s also mandatory to get the permission of the owner for any kind of renovation of the house.
Freehold is available for single-family homes and some buildings that have been converted from houses to apartments. In these two types of sale, the land of the house and flat is registered in the name of the buyer, and there are no other payments.
London Real Estate is on the Rise With a Loan Option
Foreigners can take out a loan to own a house in London. If you’re an expat and own a house in London, you’ll have to pay housing-related taxes like the citizens of the country.
What Are the Legal Procedures When Buying a Property in London?
To make an application to buy a house in London, you’ll need to provide the following documents:
- Credit card showing your address, driving license, utility bill not older than three months.
- Your payslip for the last three months showing your income and your tax return if you’re self-employed.
After you’ve decided to buy a house in London, you can complete your transaction within two or three months. After buying your house, you’ll also need to pay taxes and take out home insurance.
Property Prices in London
Average house prices for London real estate are around £12,000 per square meter. Property sites offer £40,000 for a 40 square meter apartment at Terwint Street. In Chelsea, you can find a house for around £1,950,000 for a 106 square meter apartment.
If you’re a foreign investor and are considering buying a property in London, some other costs will come your way besides the cost of the house. These include:
- Stamp Duty Land Tax: Normally, you have to pay stamp duty when you buy a property in the UK. This is usually low for your first property and quite higher for later property purchases.
- Income tax: There are taxes based on the annual income you receive from your investment property. For those earning more than £150,000 a year, income tax rates are about forty-five percent.
- Capital Gains Tax: If you sell a London investment property, you’ll have to pay capital gains tax, whether you live in the UK or not. This rate can be as high as eighteen percent.
Where Can You Buy Property in London
When it comes to living in London, places like Holland Park, Notting Hill, and South Kensington come to mind first. When buying a house, you should look at things like safety, transportation options. And of course, closeness to shopping centers. If you want to be in the city’s center and make an affordable investment, North Kensington, West Kensington, and Fulham might be good for you.
There are new homes in many areas of south London that are well connected to the city, such as Streatham, Clapham, Balham, Wimbledon, and Greenwich. New buildings in Streatham, Paddington, Islington, or Shoreditch continue to rise as evidence of property investment.
Areas such as East London, the London River on the Greenwich side are very trendy. Thamesmead & Abbey Wood, Bank Side, Waterloo, and Southall are coming to the fore in the city of London, too.
When buying property, Southeastern England and especially Central London are favorable. But these areas are low-yielding because they’re expensive. Chestertons, Savills, Foxtons, Marsh & Parsons are the leading property companies. You can also visit their websites to get information about the property market.
A Life Away from the Center
Like many large and crowded European cities, house prices in London become more affordable the further you get from the city center. London’s wide train and tube lines have enhanced life in these areas away from the center. You can find the cheapest houses in London in Barking and Dagenham, Bexley, Havering, Newham, and Croydon.
So, can we say it’s time to enjoy the rain in London streets?