The overview of budget real estate against the background of luxury housing in London

london-housingWhile in London a deficit of real estate of around 30% is observed, which is not able to cover the demand, but the real estate market in the capital is ready to offer a wide price range of residential properties, busting the myth of the inaccessibility of the apartments in the UK. The price is affected by a number of factors, first and foremost – the district, the area, number of floors, parking, transportation, proximity to cultural, entertainment and public facilities.

Budget properties in London is not a myth, such an option can be purchased by selecting residential buildings in east London. It is a kind of industrial area with mostly English-speaking population neighbourhoods. In East London the entire neighborhoods with typical bedroom apartments were built, which have a greater similarity with the French suburb housing. The city center is in 1 hour drive approximately, and that’s one of the main factors affecting the overall cost of the apartment. To date, one-bedroom apartments in the area can be bought for £180,000, while the two bedroom options start from £220,000. However, this is not the final price – more less significant expenses may be associated with property condition evaluation, legal services (all the deals are made through conveyance solicitors) and other aspects should be taken into account.

Many investors purchase the entire buildings with small-sized rooms in the suburban parts of London for recoupment through the rent, allowing to gather around 3 – 5% (at the time of 2014). Another category of buyers – the parents of students and students of London universities in need of proper housing. About 60% of transactions in the budget flats was recorded to parents or close relatives. Moreover, even in spite of the relatively low cost of such apartments they are constantly increasing in their cost. The owners of such apartments are able to bring up to 7% of annual income when making a transaction on resale.

However, both, who invest their own money in real estate capital of the UK, make up a large percentage of buyers of luxury real estate in London. According to Knight Frank statistics, the property objects priced at £1.5 – 2ml are primarily acquired by CIS residents.

The price for luxury apartments and townhouses located in the fashionable districts of the capital, which are close to the center, the so-called, Prime Central London, start from £5ml. Thus, for example, a 3 bedroom apartment with balcony and parking lot costs at least £7 million in Belgravia – the most expensive district in London, which has managed to sell more than 26.61% of transactions above £10 million.

The average price of London real estate in the fashionable areas varies widely. The peak performance falls to Mayfair and Belgravia, as well as Chelsea and Knightsbridge. Approximately 30% more affordable residential apartments are located in the elite areas of Regent Park and Hampstead – the top 10 regions that sold 8.15% and 3.4% of elite property objects the price of which has gone beyond £10 million.

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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.

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