Buying a property in London can be a lengthy process with several steps and third parties involved. For investors, LCP have created a step-by-step guide to buying a buy to let in London.
Step 1 – Be organised
We would recommend arranging your financing and starting your paperwork simultaneously whilst searching for your buy to let in London e.g. applying for a mortgage if necessary and in turn receiving approval in principal for a mortgage product, deposit or gifting letter. Identifying a solicitor who can meet the necessary timescales and understands and knows the nuances of the London property market well.
If you are considering purchasing a buy to let in cash, you could consider purchasing two properties with finance and therefore creating a diverse portfolio. London is more focused on capital appreciation than rental yields. A successful investment should ‘wash its face.’
Step 2 – Viewing
Scanning the market and viewing properties can be time-consuming but it is important to consider the area you are investing in.
What to consider when purchasing a buy to let in London-
Short on time or struggling to know where to start? Speak to our search team and we can pre-screen and create a shortlist of suitable investment properties matching your long-term goals.
Step 3 – Placing an offer
When you have found your London buy to let, you then need to place an offer to the vendor.
At this stage, you should check the vendor’s timeframe works around your own. They could have a tenant in situ which may cause delays between exchange and completion. However a good investment, is often worth the wait.
This is often a difficult stage for many buyers especially if you do not know the market well. We often represent clients who struggle to know how much to offer on a property. Our expertise and knowledge mean that we know exactly how much a property is worth.
Step 4 – Negotiating
If your offer has been rejected, you will want to be in a strong position to be able to renegotiate. In a busy market, multiple buyers can be in a bidding war for the same property.
This is when you need a professional representative who can manage the negotiation process on your behalf. If the seller has an estate agent working on their behalf why shouldn’t you, the buyer, have a professional representative? As buying agents we have good relationships with estate agents and can negotiate the best possible price.
Once your offer has been accepted, the process of arranging your finance and conveyancing commences. This process can take up to 6-8 weeks.
Step 5 – Exchange
Your contract is now legally binding, and a deposit has been paid.
If your buy to let in London is in need of some refurbishment work, we would recommend commencing the design stage now. This should leave you enough time to source and book the necessary professionals needed for the refurbishment and for them to start as soon as you have completed.
Not sure where to start? We have in-house interior designers and architects who specialise in refurbishing rental properties and developing creative design solutions to enhance your investment boosting your capital values and rental returns.
Step 6 – Completion
Funds have been transferred and you are handed the keys.
If needed, your refurbishment work can commence.
Stage 7 – Preparing to launch on the rental market
Investors should be aware that they are legally required to comply with all current legislation with their buy to let in London.
This is when our letting and property management team can help. We have been helping investors and landlords let and manage their properties for over 30 years by securing the best tenants through our stringent referencing process, offering a solution-based property management service should a problem arise, and keeping your property up to date with changing Government legislations.
If you would like to have a chat about purchasing a buy to let in London, please do set up a time for a call, we would be delighted to help.
