The Process Of Acquiring Real Estate In The UK

acquiring property in the UKAs soon as you make a proper choice and select the property you wish to acquire in the UK, a property purchase request has to be made. Depending on the nature of the offer, it may be based on a full market value, provided by realtor and at low cost, which you would be willing to pay for the selected property. As soon as the question of the cost of a fundamentally resolved and agreed upon, the parties proceed to legal formalities, their relations are now governed by conveyancing solicitors.

The contract
The buyer’s lawyer will receive a contract from the seller’s lawyer. Normally the contract has a standard format, and then a number of further steps is taken. In the case of the alleged renovation or expansion of the property it is necessary to consult with the local authorities and various organisations. For example, it is necessary to receive communications plans and schemes of electrical wiring in the building. Queries to the local authorities can help to understand many nuances, for example, the category of the road adjacent to the building (private or public) to clarify whether the selected object is responsible for the entire scope of requirements and standards of planning and construction, etc. The cost of such surveys is generally available at 200 500 pounds price.
In addition, your attorney will submit a request to the seller for all the necessary information concerning the purchased object, relative to the boundaries of the possessions, basic public services, existing disputes and various issues of this kind. You can completely rely on the information and answers to questions, confirmed by a lawyer. Another thing is that an inventory of all that becomes the property of the buyer to purchase the property is compiled; in some cases, an agreement to acquire additional items by the seller can be achieved, for example household appliances, furniture, etc.

It is advisable to make a survey on the state of the purchased object and obtain the appropriate expert advice. This will help you to find out whether the object is purchased according to normal procedures and whether it has some current problems or had problems in the past. In the latter case it is necessary to evaluate the cost of the work required to bring the facility to normality, apart from the cost of the premises. The cost of such surveys varies depending on the object size, but in case of more or less standard housing it will cost you from 600 to 1,500 pounds. A report on the condition of the real estate object is an essential requirement of any bank in order to assess whether the sale doesn’t overstate the value of the object. If you do not resort to financial assistance to the bank and buy a property at your own expense, obtaining such a conclusion is still strongly recommended to avoid the possible problems in the future.

Read more

Banking property acquisition: the underwater rocks to be aware of

banking-propertyForeign investors, experienced in the acquisition of banking real estate in London, are aware of the fact that the bank initially exposes an object on a strictly fixed price, and it is usually overpriced. However, the practice shows that investors can bargain on the final amount, since banking institutions are primarily interested in profitable sales of the objects on balance, given the fact of a lending opportunity at the same time; therefore, are willing to significantly reduce the value of the property. When buying real estate from a bank it is recommended to announce your own proposal.

In London, if you purchase new or resale housing is accompanied by the essential independently assessed examination, which establishes the technical compliance of housing and its operational capabilities. Usually, this procedure is extended for a period of 3 months. Banking services are interested to avoid such delays, so often stop at the ‘average’ price between the investor’s proposal and price of proposal for the client. Especially recommended to appoint its own proposal to investors who seek to invest in the banking elite housing located in central London.

However, the purchase of real estate bank is also accompanied with certain of disadvantages. Those investors planning to acquire confiscated or seized property must be informed that a reduced cost of such facilities is largely defined by technical condition of housing and commercial office spaces. About 70% of the bank property in London requires cosmetic or major repairs, and the scope of which defines the discount amount.

That is why in some cases, banking real estate can be purchased at a price of 80% below the average and around 40% lower than its nominal value. So, before you complete a purchase, you should better evaluate the potential expenses associated with repairs – cooperating with the 3rd party organisation, not interested in the deal, could be a reasonable approach and this investment may pay off. However, this service, just like all the legal expenses associated with conveyance solicitors services are implied to be covered by the buyer. If the property is sold at a discount of 30%, then perhaps a better option would be the purchase of resale property at a higher price, but without the need to invest in repair, especially taking into account the tough technical and engineering requirements for the buildings in the country. The average price of typical houses in London in 2014 equaled to £600,000. However, even taking into account the need to invest additional capital for the repair, the size of the discount may covers it, providing an investor with a pure income. When buying real estate bank should also consider the need to sign new contracts with public utilities companies. It will be included in the estimate of additional costs, however, it is highly likely to be a burden because of the contract renewal time frames.

Read more