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London is one of the most famous cities in the UK. The capital of England attracts a number of tourists around the globe which makes it a favourable place for investment. Due to popular destination places like Big Ben, Buckingham Palace, British Museum and Tower Bridge, there is great competition to buy an apartment in London.
Although the price of properties is a bit higher, comparatively, the ROI of the city is quite impressive which attracts a huge number of investors to buy flats for sale in London under 250K. Therefore, it is important to know the required documents and the right steps in order to book an apartment for yourself in London.
Checklist Before Buying an Apartment in London
- Security
Before you buy an apartment in London, even in a renowned housing society, ensure that security and privacy standards are up to the mark. Seek the related details about the residents already living in the building or people nearby. One may also examine the same by himself/herself to make sure that the flat contains a sound environment.
- Power Availability
Electricity cuts are counted among the major problems that occur in such buildings. Again, make sure that there is a proper electricity connection and backups to cope with the problem. Check the average voltage of the region and frequency of power cuts a day, before you buy an apartment in London.
- Ventilation
An important yet ignored thing that you should always consider is the proper flow of air and light in the apartment. No matter how furnished or luxurious your flat is, an appropriate flow of air still remains at the top when it comes to comfort. A well-ventilated apartment will be always a healthier option to choose rather than cheap flats for sale in London.
- Wifi Connectivity
Many apartments are often apartments on higher floors ( eg. 40th floor) does not have adequate coverage of wifi. Such WiFis are intentionally placed on the middle floors to cover the whole building. However, in some cases, some floors can be exempted from its range. So, before you buy an apartment in London be sure that the apartments are within the range of wifi signals or at least have a good speed of the mobile network.
Documents Required to Buy an Apartment in London
Before moving into your new apartment, paperwork and payment are necessary. Unlike payment, preparing files and appropriate documents to perform the transaction successfully requires a decent amount of time and effort. A citizen of London would require the following documents to buy an apartment in London.
- To initiate the legal process, one must carry proof of identity, which can be your passport, driving license, EEA member state identity card, etc.
- PLus, you need to prove your residential address by submitting your driving licence, bank or credit card statement, and utility bill (which should not be older than 3 months).
- Later you would be also asked to prove the source of your income to buy houses for sale in London under £300,000.
- Attach payslips of the last 3 months, a P60 form from your employer, and a photocopy of tax return documents (if self-employed) with the other documents.
Also check: Buy an apartment in Gurgaon
How to Buy an Apartment in London? Step by Step Process
Step 1: Finding the Right Apartment
To find the most suitable property for you, determine your needs and requirements for the flat. Make sure that the specification falls under your budget which should not be inflated. Now, look out for genuine and trusted builders around the city that are offering a desired flat.
Step 2: Reach Out to a Mortgage Broker
Purchasing a property in London does not come in nuts therefore you will need heavy cash to fund your investment. Any lender in the UK will not provide credit to a foreigner; thus, you need to reach out to a Mortgage Broker. Fix a meeting with the broker and ask for alternative options that you can have. However, if you are a citizen of London it could be a cakewalk for you to find the source of credit to buy an apartment in London.
Step 3: Getting Familiar with the Taxes
The taxes levied in the UK must be understood properly before buying cheap flats for sale in London. You may consult with an expert or can ask the real estate broker to provide you with a price breakdown of the property. This will help you get a clear idea about all the taxes applicable while buying an apartment in London.
Step 4: Getting Assisted with Solicitor
Purchasing or selling a property in London is never that easy. The concerned person should possess the necessary skills and knowledge. That is why taking legal advice from a Solicitor is important. These professionals can handle all the documentation required, for instance drafting a Memorandum of Sale, etc. Often, they also function as mediators between the two parties.
Step 5: Exchanging Contracts: The Final Step
In the British Constitution, exchanging contracts is considered the concluding step in a transaction. It is the prominent phase of the process as after exchanging contracts, both the parties are now allowed to step back from the agreement of flats for sale in London under 100k.
Therefore, the buyer has to pay at least 10% of the total dealing amount while the seller is obliged to accept it. Exchanging the contract simply means that both the parties agree to each other’s terms and policies. And any change after it may result in penalties.
Also read about: Buy an apartment in Dubai
Taxes to be Paid to Buy an Apartment in London
To purchase or rent cheap houses for sale in London, one has to pay a number of taxes and fees to complete the process successfully. Below are the possible taxes with the percentage of the amount they charge.
- Stamp duty charges can range anywhere from 2% of the total amount and can go up to 12%.
- Whereas, the income tax starts from 20% and can be as high as 45%.
- The inheritance tax is charged at 40%.
What is the cost to buy an apartment in London?
| Apartment Size | Price ( approx) |
| 1 BHK Apartment | £ 780,000 |
| 2 BHK Apartment | £ 1,250,000 |
| 3 BHK Apartment | £ 2,450,000 |
| 4 BHK Apartment | £ 5,495,000 |
| 5 BHK Apartment | £ 8,950,000 |
Conclusion
In a nutshell, investing your money on real estate in London can be a gold bagger deal for you. The rental returns are quite impressive in the city while business opportunities are endless. Moreover, the place has a great footfall which makes it profitable to buy an apartment in London.
