Setting your budget
The minimum all-in entry budget including purchase price, related fees, any refurbishment costs and furnishing for rental occupation will be around £600,000. This will get you a one bedroomed flat in Prime Central London.
For a two bedroomed, two bathroomed flat, the all-in entry budget will be between £850,000 and £1,000,000. Within these budgets you can gear-up, meaning that your equity contribution can be significantly lower.
Property investment London: prices will start at £1,000-£1,500 per square foot for an unmodernised property values so be prepared for what your budget can afford.
As a rule of thumb, furnishing, Stamp Duty and fees will cost around 10% of the capital investment and there will be a further 10% to spend if a property needs full refurbishment from top to toe.
|Legal conveyancing (leasehold property)||0.4% (minimum £2k)|
|Survey & valuation (Homebuyers Report)||£750+VAT (minimum)|
|Graduated Stamp Duty Land Tax (SDLT) < £125,000||0% / 3% for additional properties|
|SDLT £125,001 to £250,000||2% / 5% for additional properties|
|SDLT £250,001 to £925,000||5% / 8% for additional properties|
|SDLT £925,001 to £1,500,000||10% / 13% for additional properties|
|SDLT £1,500,001 +||12% / 15% for additional properties|
|Land registry||0.1% (approximately)|
|Local search||£200 (approximately)|