Buying a home is hugely exciting and of course one of the biggest financial commitments you’ll make in your life. And it’s therefore vital you get the best possible deal whilst avoiding the pitfalls and risks that can occur throughout the transaction. These are our top 10 tips to consider when buying a home in London.
1. Estate Agents always represent the seller – not you
Selling Estate Agents in London vary significantly in terms of their approach, level of experience and unfortunately also their professionalism. Most importantly, it’s always important to bare in mind that they represent the seller, and it’s their responsibility to achieve the highest possible price and ensure their clients’ interests are always at the forefront of any discussion or negotiation.
2. Fixtures & Fittings are not automatically included
Home buyers will often assume that white goods, shutters/blinds and light fittings will remain in the property upon completion. This isn’t the case and unless these items have been specified at offer stage and listed on the memorandum of sale, then it will be down to seller whether these choose to take or leave them.
Within any UK legal contract pack, there will be a TA10 Fittings and Contents Form which will itemise exactly what is being included within the sale – it’s vital that you check this carefully and it matches up to what has been agreed when your offer was accepted. This can be a real point of contention when buying a home in London, and sometimes even cause transactions to fall apart completely.
3. Have there been any previously aborted sales on the property?
This is absolutely crucial to investigate prior to making an offer for any property of interest. There can be a number of reasons why a previous sale may have fallen apart, but the red flags to look out for include:
- Issues relating to a building survey including rising damp, asbestos, fire regulations, invasive plant species or structural issues
- Mortgage valuation problems which could be down to the title, flooding history or unique property features
- A particularly long or complicated transaction chain
As leading London Buying Agents, this upfront and extensive due diligence forms part of our service offering and ensures our clients’ position is always protected before they begin incurring heavy transactional costs.
4. The Asking Price is NOT the final price
Contrary to what the selling agent may tell you, there is usually room for negotiations when it comes to buying a home in London. Of course the property may have just seen a price reduction or could already be very fairly priced, and this could lead to a competitive bidding scenario – but in the current market this is less common.
The average house price discount in London currently sits between 4%-6% so this a good basic guide, however we’d always advise running detailed analysis on previous sales data, additional refurbishment costs, also taking into account other features that may impact the re-sale value like an awkward layout, road noise or it being a lower-ground floor property.
See our House Price Negotiation Guide for more info on this topic.
5. Cosmetic staging can hide unseen issues
Carefully positioned stylish furniture, fresh paintwork, planting and effective lighting can all distract from potential concerns including:
- Damp related issues or water damage from a recent leak
- Structural issues causing abnormal movement and internal cracks
- Poor insulation
- Poorly maintained kitchen or bathroom appliances
We suggest you always:
- View the property in daylight and never proceed just based on an evening visit
- Ask to look behind any large furniture items
- Consider getting a full building survey for total peace of mind
6. The entire process can taking longer than expected
It’s very rare that we see transactions being exchanged within the traditional 28 days target. With the right solicitors and preparations, this can still happen but it’s best to plan for longer. It’s not an exact science and much will depend on whether it’s a freehold or leasehold property and whether there is a chain involved, however we advise our clients that the average time from under offer to exchange of contracts, tends to be 8-10 weeks, with completion at a mutually agreeable date following this.
7. The surrounding area may have potential issues
As well as being comfortable with the actual property of interest, it’s also important to give careful consideration to the local area you are looking to buy within. Things to consider include:
- Are there any major developments or infrastructure improvements planned nearby that could impact noise and disruption, and potentially even your re-sale value.
- Are there any live disputes with neighbours, perhaps regarding a boundary wall or a historic issue which could fall on your lap.
- Traffic or transport noise needs consideration and it’s best to visit the property at varied times on different times. In London many road and local areas are impacted by noise from the railways, underground and also the Heathrow flight path which can be particularly impacting early in the morning.
8. You don’t have to use an Estate Agents’ recommended solicitors or mortgage brokers!
Although these may be very useful and well-qualified referrals, you should never feel under any pressure to sign up to one of these and it’s actually now illegal for estate agents to persuasively sell these services. We’d always advise speaking with at least 2 different legal firms so you can ensure you are getting the right service level, for a fair price.
9. Refurbishment works often cost more than you think
In recent years we’ve seen a continue rise in build costs throughout the UK, driven by increased labour and material costs. This subsequently means that the cost for redecorating or a larger project like a new kitchen or rear extension have seen significant increases.
A selling agent will often provide a guide for how much they feel these costs might be, but ultimately this is not their area of specialism so we’d always advise you taking independent advise from a well-regarded building firm who can provide you with a detailed quote, before you commit to purchasing the property.
10. Leasehold properties may be more expensive in the long run
Things to consider when buying a leasehold property include:
- Years remaining on the lease – short leases with less than 80 years remaining can significantly impact the property value (speak to our team for further detail)
- Ground rent terms
- Annual Service charges – and what are these being spent on
- Upcoming major works and is there a sinking fund already in place
- Building insurance and whether there have been many large claims against it
We often help our client purchase both Leasehold and Freehold homes – the key is undertake careful due diligence to ensure you have the full picture and are not purchasing a property which will create stress and unforeseen costs further down the line.
Our final thoughts:
Most selling estate agents operate professionally and ethically — but buying a home in London is still an important and high-value business transaction.
Therefore ensure you are protected by:
- Carrying out independent due diligence
- Asking direct questions
- Budgeting carefully and conservatively
- Instructing a high-quality independent solicitor
- Consider working with a London Buying Agent
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