6 Top Tips to Buying Property in London

I’ve been a property finder in London now for almost ten years. Before that, I started out as a selling agent for fifteen years.

In my twenty-five years of experience, I’ve learned a lot about how to best approach buying a property. I’m also frequently asked this question by either first time buyers or more often these days young couples looking in a hurry. I’m also surprised by how unprepared some people are when they start their search. So here, in brief, are my six top tips for buyers:

#1 – Count your beans: Remember this will probably be the largest asset you will invest in and the heaviest debt you will enter into! Once you have your deposit and enough money to fund the purchase transaction (including stamp duty), I would recommend that you speak to two or three mortgage brokers and see how much they can lend you. Some brokers specialize in buy to lets, some with first-time buyers and some in complex international debt. Each broker has relationships with different banks so it would be good to speak to more than one. I frequently get asked how much of a deposit one needs; about 10% to 20% of your budget will do. You will get a more favourable mortgage if you have about 20% or more in cash to put down.

#2 – Get your tax and legal documents in order. Before you start to look, send all the necessary paperwork to your solicitor so they are ready and on standby. If you see a property you love, someone else will love it too. So in order to be competitive, you had better be in a good position to buy it and quickly.

#3 – When looking try and be open to other areas. Try not to restrict yourself to one area… you might find that it does not provide you with the ideal property or value for money. A recent client of mine loved the idea of living in Primrose Hill but found that the vertical town-houses were not suitable and they needed more lateral living with a bigger garden… so they considered nearby Belsize Park and St Johns Wood as well.

#4 – Do your research. Buying a home is an emotional investment and also a financial one. Your home must be the best you can get for your budget. If you find a property you like, find out from the agent what has sold lately on that street/nearby streets or in that block of flats. How much have these properties sold for? Why was there a differential in the price? What is the average price per square foot? Use this information as a guide to help you when you start bidding on yours. Always start bidding with your maximum price in mind so you can build up to it during negotiations. It is important to have a good handle on value, so you don’t end up overpaying or have post-purchase doubt!

#5 – Some selling agents are brilliant, some are good and some are.. how shall we say.. “not very scientific with their facts”. When you call an agency, ask for a senior member of staff, they will have the experience and know the area well. A good agent will be acutely aware that they need to give you the best experience possible because a buyer eventually becomes a seller, and they want your future business. When talking to an agent be very clear about what you want and honest about your position. Always ask lots of questions about the area and its current market value.

#6 – Buying a property in London is expensive, so are the transaction costs. Before you offer, list your costs. This will include a solicitor, surveyor, removals, decoration if necessary and don’t forget Stamp duty.

Just to give you an example: buying your first property at £1,000,000 could cost you about £45,000 to fund the transaction.

Good luck!