How To Purchase House

Excluding Moscow, London is Europe’s largest city with a population of about seven million, although this figure very much depends on where you stop counting. This statistic helps to account for London’s infinite variety; such a huge and diverse population means the city is very experienced at catering for every taste – yet still manages to surprise.

Although it’s typical to talk about London in terms of geography – the city, the east, the north and so on – Londoners often talk about their ‘village’, meaning the distinct area where they live. This is a good way to approach London, namely in ‘bite size’ chunks. Trying to master the entire city, or even understand it, is simply too complex, even for a Londoner. If you visit on a city break then just relax and pursue your own interests. Whether you enjoy world-class museums, shopping or just lazing around in historic pubs then London will be able to cater for your tastes.

Beneath the modern dynamism and fashionable buzz, you’ll find an old-fashioned, elegant city that harks back to the days of the Empire and beyond. National confidence is evident in the grandeur of the buildings; wealth obvious from their scope and magnificence. Even a short list serves to impress: Westminster Abbey, Big Ben, Buckingham Palace, the Houses of Parliament and the Albert Memorial. Beautiful Greenwich contains superb architecture, the Cutty Sark (sadly a victim of arson and undergoing repair) and the Prime Meridian. Superb and historic museums and art galleries are scattered around the city, including the enormous British Museum in Bloomsbury, stuffed to the gills with treasures from around the world, and the National Gallery in Trafalgar Square.

If entertainment rather than history is your prime aim then London boasts superb shops and theatres. Department stores sit cheek by jowl in Oxford Street, up-market designer shops can be found in Regent and Bond Street, whilst King’s Road is great for sourcing small designers or pillaging the second hand market. London’s famous theatre district, the West End, is the place to catch any kind of dramatic performance, from Waiting for Godot to Starlight Express.

But if you would like to discover what is up-to-the-minute and trendy in terms of art, architecture and performance, then lesser-known districts like Shoreditch and Hackney have become Meccas for modern artists and the cool crowd. Notting Hill used to be the edgy place to go, but no longer. Modern architectural icons are more spread out, but easier to spot. The ‘gherkin’ is an obvious building to admire or to laugh at; another major icon is the hugely successful Tate Modern to the south. London city breaks can be as modern or nostalgic as you wish.

All these attractions are only the beginning of what London has to offer – and with the 2012 Olympics on the horizon, its famous ability to change and develop looks set to continue.

Firstly you need to know:

Who can extend?

You can apply to extend your lease only if you are what is known as a “Qualifying Tenant” under the 1993 Act. You are a Qualifying Tenant if:

1.) You are the tenant of a residential flat.

2.) You are not a business tenant.

3.) The original term of your lease was longer than 21 years (or contains an explicit right for perpetual renewal); and

4.) You have been the owner of the lease for at least two years.

You have the right to claim a lease extension from your landlord if:

1.) Your immediate landlord is the freeholder of the property (if your immediate landlord is a leaseholder, the question of an extension will depend on the length of the term your landlord has left on his lease); and

2.) Your landlord is not a charitable housing trust.

(NOTE: There are other leases which may qualify for renewal. If you are unclear please seek professional legal advice.)

After meeting the qualification guidlines the next big question is:

What will it cost?

You will need to pay a premium for the lease extension. The price is the cumulative total of the following:

1.) The diminution of the value of the landlord’s interest in the flat.

2.) 50% of the marriage value of the existing lease term and the additional 90 year lease; and

3.) The compensation for loss in clause of other property owned by the landlord.

The date on which the tenant applies for a lease extension will be the date of valuation.

In addition to paying you own legal fees you will also be required to pay the landlord’s legal fees and the costs of the valuation.

Some other very popular questions that have been asked on lease hold are:

What happens if I want to buy a leasehold flat and I want to extend the lease?

As you need to have owned the lease for at least two years you will not be able to extend the lease after you have acquired it. Therefore, it is common practice for the seller of the leasehold to make an application to extend the lease and then assign the benefit of the application to you as purchaser.

What lease will I be granted?

You have the right to be granted a lease of 90 years (plus the present unexpired term) from the expiry date of your current lease. The rent will be a peppercorn (i.e. rent free). The lease will be broadly on the same terms as your existing lease but may be subject to amendment (depending on any modifications, exclusions and/or additions to the demised premises).

It is worth noting that the landlord will retain a redevelopment right at the end of the existing term of the lease. The landlord will have to pay the full value of the remaining 90 year lease to you and the termination is subject to a court application by the landlord.

What is the procedure?

As a Qualifying Tenant your solicitors will serve a preliminary notice to obtain information from your landlord. Your solicitors will then serve the notice of claim which will state:

1.) Details of the property.

2.) Details of the lease (showing that you are a Qualifying Tenant);

3.) Details of the premium offered; and

4.) A date for the landlord’s counter-notice.

The landlord should then respond and will probably require payment of a deposit equal to 10% of the premium offered.

The landlord will value the premises and serve a counter-notice which will state whether they object to the claim.

If the parties cannot come to an agreement they can apply for the Leasehold Valuation Tribunal to determine the claim.

This article is free to republish provided the authors resource box below remains intact.

We’re taking the bus instead of driving. We’re only using detergent that we’ve secretly swept up from the local laundrettes’ floor. And the only new clothes we have are ones we’ve recently weaved from discarded rags found round the back of Primark. The credit crunch has hit us all pretty hard. But nothing has taken quite as big a blow as our holidays. And let’s face it – it’s at a time when we need them the most.

But it IS possible to take a break without worrying about the state of your mortgage. This is the ultimate credit crunch guide to visiting the capital. Not so much London on a shoestring as London on a piece of value string, bought in the sale.

Where to stay

The recession has hit London hotels hard, and they’ve had to severely drop their rates to stay afloat which is bad news for the hotel industry but excellent news for budget travellers.

Where to go

Anywhere free! London has gained quite the reputation for being inordinately expensive yet in reality, lest we forget, is the ideal city in which to do free things. Literally countless tourist attractions, historic monuments and places of interest won’t set you back a penny. Marvel at the changing of the guards! Get delightfully lost in the Natural History Museum! Stroke your chin in an educated manner at the Tate Modern!

Where to shop

Shopping in London isn’t all about the designer boutiques of Bond and Regent Street. If you know where to go – London offers a world of budget shopping possibilities. Portobello Market offers many a second-hand find, at a snip of usual London prices. Camden Town offers so much more than Goths and vegan cafes – specialising in all manner of interesting and unusual clothing, art and music. Again, for the loose change you could scrape out of the bottom of your bag. Lesser known areas such as Spitalfields and Hoxton should definitely be explored for some financially-challenged treasures.

Where to eat

When on a weekend away, it’s easy to fall into the trap of eating every meal out – but you can still indulge in a little traditional London fare without having to offload large amounts of your hard-earned dollar into some tourist trap cafe. Instead, nip down to the nearest supermarket or bakery and pick up a few bagels. Then head to any London deli a buy a few slices of salt beef. Then stock up on gherkins and coleslaw, for the ultimate authentic London lunch.

If you must eat out, opt for back street Italian restaurants or curry houses. Not only are they cheaper, they are more often than not a hell of a lot better than anything you’ll find recommended in a guide book. A little unearthed gem is the restaurant chain Leon, which can be found in a variety of London hotspots (Carnaby Street, Bankside, The Strand…), serving healthy and delicious meals at ridiculously low prices.

Oh, and there is of course another option. Stealing croissants from your hotel at breakfast. Simply place an open napkin on your lap and with one swift gesture, lunch is taken care of! Note: We do not condone this sort of behaviour.

What to do

London being a veritable tangle of cobbled streets – offers many an interesting walk. Simply purchase a guide book (you’d be surprised at how many can be found in your local charity shop) et voila! Your very own guided tour – personally tailored to exactly what you want to see.

London seems to present the cash-strapped traveller with free treats on a continual basis – with gratituitous entertainment seemingly unravelling at your feet. For an evening of free entertainment, head to an area populated by high levels of tourists, such as Covent Garden, with a supermarket bought bottle of wine (screw top, obviously) and a blanket. With numerous street artists and performers to keep you entranced – wander around until you stumble lovely jazz quartet – then set up camp.

Failing these – the perfect credit crunch busting London past time? Head down to Canary Wharf (the city’s financial capital) armed with a box of eggs. Proceed to throw said eggs at the bankers who got us in this horrible mess in the first place.* Total cost? Around 79p for a box of eggs.

* Don’t actually do this.

Our guide features London’s best galleries, museums, landmarks, historical sites, shopping areas and entertainment zones, all guaranteed to provide the ultimate London tourist experience. The attractions we’ve highlighted are unashamedly well known, but do you really want to be returning home to tell your friends about the fantastic thimble shop in Pimlico you visited? Or would you rather rave about the phenomenal view of one of the world’s great cities from the top of The Eye, or that you’ve actually seen the beauty of Van Gogh’s Sunflowers with your own eyes?

London has a multitude of varied and exciting attractions but these are the ones without which, your trip just wouldn’t be the same!

Oxford Street Britain’s busiest high street and London’s best known shopping area is chock-a-block full of the largest branches of the nation’s most popular shops – over 300 in fact. Many of the biggest high street names have their flagship stores here and the street also boasts the oldest record shop in the world (HMV at number 363). It’s not all hardcore shopping though – light entertainment is often provided in the form of chanting Hari Krishnas skipping along the pavement. If you can’t find what you want to buy in Oxford Street, you haven’t got much of a hope elsewhere.

Nearest Tubes: Marble Arch, Bond Street, Oxford Circus, and Tottenham Court Road

Camden Market If you’re after a more bohemian approach to shopping than the Oxford Street experience, then get yourself up to Camden. One of London’s coolest areas has a seemingly endless array of shops and stalls selling such items as clothing (new, second hand and retro), customised Doc Martins and trainers, jewellery, bootleg CDs and DVDs and craft ware. Open daily; it’s a multi cultural experience with some great little food outlets dotted all over.

Nearest Tube: Camden Town

Tower of London Built by Billy The Conqueror nearly a thousand years ago, this is one of the best preserved and most famous historic landmarks in the world. Full of the history of executions and imprisonments and offering the spectacle of the Beefeaters, the ravens and the crown jewels as well as the majesty of the building itself, this remains THE essential place of historic interest to visit when in London.

http://www.camelotintl.com/tower_site/index.html

Nearest Tube: Tower Hill.

St. Paul’s Cathedral Britain’s best known place of worship and certainly one of its most recognisable buildings, having so often been the centrepiece of state occasions. The cathedral was designed by Sir Christopher Wren and built 300 years ago following the destruction of the previous building by the Great Fire Of London. An awe inspiring feat of architecture, steeped in history and featuring works of art, monuments, mosaics and the Whispering Gallery, the Cathedral is also still a busy working church. So booking your wedding here during the summer months might just be a bit tricky.

Nearest Tube: St Pauls

National Gallery The National Gallery is home to one of the greatest collections of European art in the world. Featuring works painted between 1250 and 1900, the collection includes such well known pieces as Van Gogh’s Sunflowers, Botticelli’s Venus And Mars and Constable’s Hay Wain. Sadly, the work of the great Rolf Harris is too recent and too Australian to be included – see the Tate Modern.

Nearest Tube: Charing Cross. Admission: Free

British Museum Founded over 250 years ago, it could be said that the British Museum is one of London’s oldest and most prized exhibits – the museum building itself is one of Britain’s greatest architectural landmarks. Housed inside is a collection of art and antiquities from ancient and living cultures the world over spanning two million years featuring the Rosetta Stone, the Easter Island statue and the earliest known image of Christ.

Nearest Tubes: Tottenham Court Road, Goodge Street, Russell Square & Holborn. Admission: Free

London Eye Undoubtedly the quickest way to take in all of London’s major attractions is by jumping on the Eye. There’s not much of the city that can’t be seen from the top of what has become one of the London skyline’s most dominating features. To further enhance your flight on this modern day feat of engineering, you can even order champagne to be served in your capsule (not recommended for the easily nauseas). http://www.londoneye.com

Nearest Tubes: Waterloo & Westminster.

Tate Modern If random blobs of paint on canvas and piles of rusty old engine parts is your idea of art, then get yourself down to the Tate Modern. Created in a disused power station on the banks of the Thames, the gallery has become one of London’s most fascinating attractions since opening in 2000. The collection features works by Picasso, Matisse, Dali, Pollock and Warhol and represents all the major movements since 1900. Sadly, the work of the great Rolf Harris is too art like to be included – see the National Gallery.

Nearest Tubes: Southwark & Blackfriars. Admission: Free (however donations are gratefully received)

Covent Garden Formerly a fruit and vegetable market, ‘The Garden’ is now a constant and varied hive of activity. It has a hugely diverse selection of shops, eateries, bars, a market selling art, crafts, antiques and souvenirs, historic buildings, theatres, the Royal Opera House and fantastic free entertainment provided by street entertainers and musicians. If you can’t find something to capture your interest at Covent Garden then you must be harder to please than Simon Cowell on a bad day.

Nearest Tube: Covent Garden.

Trafalgar Square Undoubtedly one of the most famous sights of London without visiting which, a trip to the capital would be incomplete. Not only are tourists drawn to see Nelsons Column, the fountains, the lions, the annual gift of a huge Christmas tree from Norway and the pigeons (dirty little so and sos), but it is where the masses flock to in times of national celebration or when there is cause to demonstrate. Trafalgar Square truly is the meeting place of the nation.

Nearest Tube: Charing Cross.

SAVILE ROW

Savile Row is famous for its men’s tailoring, in particular men’s suits. In fact, Savile Row is credited for the invention of the term bespoke, as suits were often described to “be spoken for” or “be-spoked” for. The street has often been referred to as the golden mile of tailoring.

Savile Row was first developed in 1695 as part of the Burlington Estate. It had been part of the gardens of Burlington House previous to this. Originally it was named Savile Street. Houses were built on one side of the street, with gardens on the other side and was therefore nicknamed Savile Row, with a row of houses on one side. The name was officially changed in 1810.

Tailors started to play a big part in the area around this time. The first tailors appear on the street in 1785, and over the next fifty years the trend continued. This is what made the area famous. Many Savile Row Tailors have gone out of business or moved elsewhere within London, but plenty still remain and it is still the place many men go for their tailoring.

FLEET STREET

Fleet Street is synonymous with the British Press. The street runs from the east end of the Strand through to Farringdon Street.

In the late fifteenth and early sixteenth century the trend for printers and publishers moving into the area began. Later, and more famously, newspapers started to move their offices to Fleet Street. The first daily newspaper to do this was the Daily Courant in the early 1700’s. By the 20th century a large majority of London and National newspapers had their headquarters in the area.

This is no longer the case though, as many of the papers moved out of Fleet Street from the 1980’s. All of the main newspapers have now left and it is now more associated with law practices.

Despite the area no longer being the home of the newspapers, it is still known for this. Fleet Street is still often a collective name meaning the newspapers. If somebody says that “Fleet Street has been saying…..”, it means that this is being said by the newspapers.

HARLEY STREET

Harley Street is world famous for its medical practices. Prior to the 18th century it only consisted of a few houses and was part of the village of Marylebone; not yet part of the City of London. As London grew in the 1700’s century Marylebone became part of London. It was developed into a larger residential area between 1715 and 1720. Around a century later doctors started setting up home in the area, with a number of them setting up practices from their homes. As this trend continued the area became well known in this regard.

Over the 150 years that followed a large number of medical practitioners moved to Harley Street, with one and a half thousand believed to be in the street and its surrounding areas buy the middle of the twentieth century. It had the largest concentration of medical expertise on earth. Today there are still a number of medical practices in the street across a broad range of areas of expertise.

OXFORD STREET

Oxford Street is world famous for its shopping. It is London’s main shopping area, and is the busiest shopping street in Europe. It used to be part of the main road from London to Oxford, hence the name Oxford Street.

The street runs for one and a half miles and is full of shops, with a few restaurants and café’s. It has many major department stores and to be a major player in retail in the UK it is almost considered a must that you have a store in Oxford Street. Most of the best known shops have their main store here, with some having two or three. Oxford Street is known for how busy it can be, especially prior to Christmas and in the post-Christmas sales.

REGENTS STREET

Regent Street is another main London shopping street. In runs north from Piccadilly Circus to Oxford Street. It is not as busy as Oxford Street and is different in its appearance with its grand buildings.

Regents Street was one of London’s first planned developments and built in the early 1800’s. Building was completed in 1825 and every building on the street is listed. It is considered more elegant than Oxford Street, and is famous for its Christmas lights.

Andrew Marshall ©

Harley Street Consulting Rooms

Savile Row

Buying Overseas Investment Properties

When it comes to searching out a great overseas investment property, the first place to begin looking is in search engines. Some UK home based companies have offices throughout the world-Hong Kong, Sweden and Spain and has just recentlylocated in Thailand.

Fareps Property Investment(d/b/a Far East Property Solutions LLP) customizes the overseas property investment search with the ease and experience with qualified agents and a team of specialist to handle legal and financial issues when dealing with overseas property administration and management. Fareps features SIPP(Self Invested Personal Pensions) and SSAS (Small Self Administered Schemes) to give investors the availability to gain some tax relief(up to 40%) on personal contributions. The SIPP is available to investors seeking overseas properties in Spain, Cape Verde, Thailand and other South East asian properties.In today’s economical situation, many people are backing off buying second properties for vacation, business or investment purposes or some may begin to panic because they are carrying a second property on an already stretched budget. Because of the worldwide reach Fareps has in the real estate market, Fareps can help work with anyone to figure out what is the best real investment portfolio to have in this tight economy.The biggest areas to get into overseas property investment is in Thailand, Spain and Portugal. Both areas boast a warm sunny climate, tourist attraction areas, beaches and businesses. In Thailand, the country has stabilized the tourism industry and continues to provide a cheaper vacation/holiday alternative then other counterparts around the world. In Spain, overseas property investments are on the rise due to the amount of bank owned properties. Fareps councils investors on how to purchase a property in Spain without risking a financial loss.Even though the economy has plagued these parts of the world just like everywhere else, Fareps can help you stay and be successful in the overseas real estate market.Fareps works with an investment specialist based in Thailand. Current Fareps properties listed in Thailand are:Himmapan Beach Samui, Bophut Residence, Cool Blue Samui, West Coast Apartments, Pangea Golf & Spa Hotel and Serenity Spa Hotel. The hotels are turnkey facilities. Fareps has a list of current properties available for resale in Spain and information on investment in the Hacienda del Alamo Golf Resort.Another hotspot to get involved with overseas property investments is in London. Although London may be suffering due to current economic conditions, Fareps believes this area is still a hot target. With offices in London, Fareps can direct clients on where to find the best properties in London. London attracts overseas students who seeking off campus housing. Fareps can assist the guardians of the students find an affordable yet stylish place to rent during the student’s stay in the UK. For clients who need to provide housing for employees living and working in the UK, Fareps will work with the clients to secure a nice apartment or housing unit without breaking the budget. If a vacation investment property is something you are looking for in London,Fareps has an up-to-date list on current resale and bank-owned properties available for potential clients. The biggest area to make a move into the London real estate market is on flats and apartments near reemerging developmental projects. Fareps has information on a overseas property investment in The Flaxby Golf and Country Club Hotel Investment. Not scheduled to be completed until 2011, the Flaxby Golf and Country Club Hotel will be connected to a prestigious golf course, the Lee Westwood Academy, the Elemis Spa and other popular restaurant and bar destinations.

If you have ever used auction websites to get rid of your old clothes but what about using the web to auction your house? According to most auctioneers, and former property developers, we should all be doing it because not only does an online auction remove the pain of gazumping, it also ditches the estate agents.
There are many new dedicated property auction websites that aim to combine the benefits of auction and private sales.
The only thing agents are really useful for are their databases of potential buyers. If you list your two-bedroom flat with an estate agent, you are paying them three per cent for them to give you, say, 15 people interested in buying a two-bed flat. But by listing your home on the web, buyers will find you. Estate agents try to make you believe they are working flat out to get the buyer or the seller the best deal. But if the buyer and the seller just got together and spoke directly they would be able to come to an agreement much quicker and not end up paying thousands of pounds commission.
What is more, often sellers could make several thousand pounds more because the price has not already been fixed with the buyer.
These auction sites work by sellers paying a one-off fee plus VAT to register their property. After specifying a hidden reserve price, the seller decides on a guide price, the advert goes live and an auction date is set for several weeks ahead. During this time potential buyers can arrange with the seller any viewings or any surveys or searches they may wish to carry out. Bidders can register free and bid on the auction day. To ensure bidders are genuine, the site requires them to provide several types of ID, including a scan of their passport. Bidders are also required to agree to terms and conditions, which are legally binding, to deter from dropping out of the purchase.
After the auction ends, the process is the same as a private sale and everything is handed over to the lawyer of the buyer and seller. After the buyer has won the auction he pays one per cent of the price to the solicitor of the seller to secure the property for six weeks. During this period the buyer can then arrange additional viewings or surveys if necessary. Once the auction is closed, the price is set. There is no gazumping or gazundering. If the buyer wants to pull out, he forfeits his one per cent deposit. For the seller, if the deal falls through, although it may be disappointing, they will pocket the deposit and start again.
But there are some pitfalls to selling your home yourself, warns Peter Bolton King, chief executive of the National Association of Estate Agents. People are not necessarily good sellers. There is more to selling a house than saying here is the bathroom, here is the kitchen. There is a knack to it. The idea of the online auction all looks very very good but there are a lot of questions sellers and buyers should ask. You are taking a big risk doing it yourself.

James Davis, founder of online property rental site, www.upad.co.uk, disagrees with reports that London property rental prices have decreased by 15 percent over the last year.

Davis comments: “Over recent months, the city has seen a vast increase in the number of accidental landlords, due to the fact that they have been unable to sell their property. And the rules of supply and demand apply, meaning that property rental prices have levelled off. Overall I do not believe they are falling – there remains plenty of potential for many to make long-term gains.

Davis considers that the UK (primarily London) is already seeing a shift towards a more European model of renting. As recently published in the English Housing 2007-8 report, 32% of people under 30 were buying with a mortgage against 45% who were renting. In 2001, those figures were 40% who purchased with a mortgage and who 33% rented.

Davis comments: “For Landlords wishing to increase portfolio, they should note that yields are much higher today than they were 12 months ago.

“Interest rates are at an all time low, which presents a real opportunity for residential property investors. They just need to get their proposition right, and to target the market effectively. However, it is important to remember that property is a long-term investment game – don’t go into it expecting to get rich quick.”

-Ends-

Notes to editors

upad’s website deploys bespoke state-of-the-art technology to overcome issues identified by renters such as out-of-date information and poor online experiences.  In particular upad enables online searches that are interactive and intuitive to produce relevant properties.

With over 82,000 rental properties available in London, upad will continue to add to this portfolio in order to offer the largest choice of homes to rent in the capital.  The service will be rolled out across other major UK cities in the next few months.

Free to renters, upad costs landlords £59 per listing.

For further information and interviews, please contact:

Katrina Suppiah/Kate Alexander, Publicité

Tel: + 44 (0)20 8543 6582/+44 (0)20 8543 8481/+44 (0)7809 028711

Email: k.suppiah@publicite.co.uk/k.alexander@publicite.co.uk

London Bridge may have fallen, but this tenacious society has a knack for bouncing back from just about anything. Although much of the city’s visible history has been wiped out by centuries of fires, rebuilding and modernization, London is inescapably a prevailing icon of the global past, present and future. Museums, monuments and the presence of the Royal Family all maintain an air of London’s ancient and imperial history about the city.
The London Reality: From Lackluster to Illustrious
During the Industrial Revolution, London was by far the most polluted city in the world. The infamous London Fog killed thousands of people while Parliament had to move away from the River Thames due to the unbearable stench. London cleaned up its act since then but the streets are still a composite of poverty and wealth, doldrums and brilliance. The proximity of these realities is what makes London so fascinating and unique to the city’s visitors.
The Tate Modern Museum is a leading example of how London likes to reinvent itself. The exclusively contemporary museum is housed in the old Bankside Power Station, contributing an industrial, factory-like feel with sharp lines and a smokestack exterior. From the Tate, the sleek Millennium Footbridge stretches across the Thames with the elegant St. Paul’s Cathedral jutting paradoxically into the sky beyond. Just down the bank, Shakespeare’s Globe Theatre also stands in a dilemma of time periods. The shiny plated sphere shatters the mental image of Old English literature and seems to be a modern nod to a coveted and precious part of London’s cultural identity. In the center of London’s progressive bustle, Buckingham Palace sits as regally as it ever has while visitors press up against the iron gates daily to view the ceremonious changing of the guard.
London stands apart from other major cities due to its unusually expansive range of parklands. Hyde Park once served as Henry VIII’s hunting ground and covers 350 acres of land, divided by Serpentine Lake. The Park is used for many public events and is contiguous with the prestigious Kensington Gardens. An interesting twist to greenery can be found in the Highgate Cemetery, known for its eerie Victorian-Gothic tombs and overgrown catacombs.
Eat, Drink, Shop, and be Merry
Busy Londoners love to consume and indulge. Even in this rather fast-paced commercial capital, the nightlife is even more tireless. Pubs are packed in the early evenings and some of the world’s most famous nightclubs rage until dawn. The world’s top restaurants are booked until midnight and offer some of the finest dining experiences anywhere, with a focus on international cuisine. During your stay in London you will indulge, buy, see and schmooze, but any attempt to schedule sleep into your itinerary may be foiled.

Conveyancing in London and the United Kingdom has started to feel the housing market crunch but The First Time Buyers’ Initiative (FTBI) was introduced to make more affordable homes available to first-time buyers. It is available throughout England from 23 regional HomeBuy agents. So what does this mean for first time home buyers?

Who can buy FTBI homes?

50% of the new homes available through the initiative will be for key workers (nurses, teachers, police officers).

The other 50% will be available to first time buyers who fit the following criteria:

The buyers must be first time buyers. They cannot be homeowners already nor can they be named on a mortgage.

The buyers must be unable to afford to buy a home (within reasonable travelling distance of their workplace) which is suitable for their needs.

The buyers must be able to show that they have sufficient funds to pay a deposit (up to 5% of the purchase price), legal fees, stamp duty land tax and the additional costs associated with moving house.

The buyers must be on a long-term employment contract. If they are self-employed, accounts for the past three years will need to be produced and subsequently approved.

The buyers must have a good credit history.

The buyers must take out a first mortgage with one of the qualifying lenders.

What contribution will be given and how is it repaid?

The government will provide up to 50% of the purchase price. Therefore, the mortgage and the cash funds available to the buyer must be at least 50% of the purchase price. Not all buyers will qualify for 50% assistance, the HomeBuy agent will determine the level of contribution available to each buyer.

The government’s contribution will need to be repaid on the sale of the property. The repayment will be at the same percentage of the sale price as the contribution, so if the sale price is higher than the purchase price, the repayment to the government is higher (in terms of a monetary figure) than the input.

After three years the buyer will need to pay a fee to the government on sale of the property: 1% of the contribution after three years, 2% after four years and 3% thereafter.

What is the procedure?

The prospective buyers need to register their interest with the HomeBuy agent and they need to complete a HomeBuy application.

If eligible, the buyers will receive an “Approval of Eligibility Letter” from the HomeBuy agent and they will be provided with FTBI schemes in the buyer’s area.

The buyers then chose a home and instruct their solicitors and their IFAs to progress a full mortgage application.

Once the HomeBuy agent gives final authority to proceed, the buyer can agree to exchange contracts.

The buyers’ solicitors then need to ensure that all conditions for buying a FTBI home are met (i.e. mortgage offer is in order, property price is agreed and funds are available) and proceed with the purchase of the property as usual.

On completion, the buyers’ lender will provide the drawdown and the government will provide the balance funds. There will be a second charge put on the property for the benefit of the government.

If the buyers want to sell the property later, this can be done on the open market.

A list of FTBI HomeBuy agents is available from the English Partnerships website englishpartnerships.co.uk.

This article is free to republish provided the authors resource box below remains intact.