Buying a Property in London
The London real estate market is characterized by rare stability. To buy luxury real estate in London means to invest with minimal risk. According to statistics, residential and commercial real estate in London doubles in price every 7–10 years. It guarantees a good return on investment in real estate.
There are two main types of property for sale in London: Leasehold and Freehold. There is also a Share of freehold. Find out the details below.
If you are buying an apartment in England, you cannot buy the land on which an apartment building is built. All apartments are Leasehold. Buying an apartment is a long-term lease, for 120 or 150 years. Recently, leasehold has also appeared for 999 years. It can be inherited and extended for an additional fee.
The best option for buying an apartment is a share of freehold when the owner of the apartment owns part of the land under the house. This type of ownership exists in small houses that are divided into apartments.
Freehold is the full ownership of both the real estate itself and the land on which it is located. It is called Deed in England in the ownership document. Only a few lines are given to the description of the building itself, everything else is about the land, with the application of a map of the purchased plot.
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In addition to the cost of the house, a progressive stamp duty tax is paid when buying, the higher the cost of the house, the higher it is. It can be included in the mortgage price, but this will negatively affect the percentage and the "loan/collateral" ratio. Almost everyone is trying to pay it in cash. There are benefits for people buying their first property.
Pros to invest in London real estate
The cost of real estate in the UK is growing and buying an apartment or a house is a good investment. Everything is expensive in London, but, the choice of jobs is huge. Many people want to live in the capital or outside the city, in transport accessibility. Choose one of the apartments in Zone 1 London.
Consider the following pros to invest in London real estate:
- Reliability of investments. London's real estate market is stable and stable, recovering after the financial crisis.
- Steady and high demand for rental of residential real estate and commercial facilities. High rental rates with prospects for constant growth guarantee high returns on real estate investments.
- Possibility of using mortgage lending services. It allows for reducing financial risks when investing in real estate.
- High "added" value – when buying a property in London, the investor receives opportunities for profit and additional benefits in the form of high status, and prestige.
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Considering London real estate as an investment object, it is necessary to pay attention to such market segments as commercial office-type real estate, hotels, and hotel rooms, as well as student real estate and self-service warehouses. When investing in these types, all the investor risks are insured, which guarantees the safety of the investment. The income from such investments can be up to 12% per annum!