Buying a property in London? Here are some considerations:

Before the financial crisis, banks would provide a mortgage in principle which confirmed how much they were willing to lend. At present the process is as follows: Consult your bank to get an indication on how much they are willing to lend (normally 3.5 times combined income). When you have found the property you wish to purchase, put in an offer. Then get the mortgage from your bank.Find a reputable solicitor to handle the conveyance. Below is an example of final costs which a solicitor will provide upon completion.

Completion Statement Example

Purchase Price                                                                                                                            370, 000

Plus:

Local Authority Search                                                                      150

Environmental Search                                                                         35

Stamp Duty                                                                                  11,100

H.M. Land Registry Fee                                                                    175

H.M. Land Registry Search Fee                                                            5

Drainage and Water Search                                                                45

Bankruptcy Search Fee                                                                         5

Solicitors Fees

Legal service and advice                                                                    800

Photocopying/postage/telephone                                                        40

Telegraphic transfer                                                                             40

Completion of Stamp Duty Land Tax Return                                        60

Storage of deeds/documents                                                               35

Fees                                                                                                                                                   12,490   

Sub Total                                                                                                                                        382,490

Less:

Deposit paid                                                                                                                                         70,000

Net mortgage advance from High Street Bank                                                                                  310,000

Balance to be paid to Solicitors                                                                                                      2,490

Terminology

Tenure

• Leasehold               
• Share of freehold   
• Freehold                     

Mortgages

• Interest only
• Repayment
• Key Worker Schemes

Home Buying Costs

• Conveyance Costs
• Stamp Dutyy
• The Valuation and Survey Costs
• Land Registry / Local Authority Search Fees
• Mortgage Lender's Application Fee
• The Deposit
• Insurance Costs
• Mortgage Indemnity

Insurance

• Buildings and Contents Insurance
• Mortgage Payment Protection Insurance

Commuter Belt Option

• With faster train services, living outside London and commuting to work is a way to enjoy the best of both worlds. This is the sensible approach. You get more value for your money in terms of square footage. The commute into work via National Rail can be more comfortable than using the London Underground. The negative aspects are long commute times and not enjoying London during the week as you need to consider the last train home.

Residential Stamp Duty Rates