Comprehensive Insights in London Real Estate Sales

Introduction to London Real Estate

Welcome to the captivating world of London Real Estate where there is an endless realm of possibilities. London is an extraordinary city that stands distinct from others across the globe. London's property market, has a unique charm, and great investment potential especially with the many new build properties all around the city.

How London's Real Estate Market has progressed

• Over the span of the last 70 years, London's real estate market has experienced remarkable growth and transformation; witnessing an impressive surge in the average house price in the UK by a staggering 365%, even when adjusted for inflation. Throughout its dynamic history, the city has undergone numerous regeneration projects, each contributing to its continuous evolution as a thriving metropolis.

• From the post-war reconstruction in the 1950s to the Docklands regeneration in the 1990s, London has showcased its ability to reinvent itself, adapting to changing times and embracing modernity. These ambitious regeneration initiatives have not only revitalized neighborhoods but also reinforced London's status as a global financial and cultural hub.

• While the market has faced uncertainties, such as the 2008-2009 financial crisis and more recent global economic slowdowns due to the pandemic, London's real estate market has proven its resilience time and time again. Despite challenges, the city's real estate market has maintained a strong and steady upwards trend.

• London's enduring appeal lies in its unwavering stability, which continues to attract investors from all corners of the globe. As a world-renowned real estate destination, the city's property market stands as one of the most secure and reliable options for those seeking a solid investment.

Home Buying Process

Buyer Journey – Stages

1. Contact the Client

2. Broker Call & Decision in Principle (DIP)

3. Property Search & Viewing

4. Negotiation & Offer

5. Reservation Fee Paid

6. Solicitor Instructions & Lender Approval

7. Exchange Day & Deposit

8. Completion

Organise finances. Before starting the property search, the client should receive a Decision in Principle from a mortgage advisor.

Property Search. Select 2-3 options within the client's budget, register the client with the developer and arrange a viewing.

Offer. Upon selection of their desired property, negotiate a deal and send in an offer to the developer.

Reservation. Upon offer acceptance, the buyer has to pay a reservation fee (£500-£2000 or more) and appoint their solicitor and mortgage advisor.

Instruction. Solicitor and mortgage advisor is instructed by the buyer to proceed with the purchase application.

Exchange. Contracts are signed by each party and the deposit (5-10%) transferred from the buyer's solicitor to the developer's solicitor.

Completion. This is official when the remainder of the outstanding balance of the property is paid (mortgage or cash) from the buyer's solicitor to the developer's solicitor. Once the transfer is cleared, the keys are released.

Tips for Securing Clients in Real Estate

• Create a Sense of Urgency: Highlight limited availability or competitive market conditions to motivate the clients to make a quicker decision on desirable properties. Ensure that any urgency presented is genuine to avoid mistrust.

• Provide deliberation time: Respect potential buyers who may be uncertain or hesitant by giving them extra time to contemplate their decision. Clearly communicate the specific time frame to maintain their motivation.

• Present Less Attractive Alternatives: If you cannot lower the price further, offer a more affordable option with fewer attractive features. This may lead clients to reconsider and opt for the original deal. Alternatively, present the less desirable properties to your client first before showing them the one you're trying to actually sell.

• Foster a Sense of Competition: Install a sense of competition among potential buyers to encourage quicker decision making. Highlight unique features, mention strong interest from others, and set clear deadlines for submitting offers.

• Offer Multiple Options: Have alternative properties ready to present to the client in case the one you are trying to sell does not appeal to them. This approach encourages them to make a decision among multiple choices, increasing the likelihood of a successful sale.

• Discuss Opportunity Cost: Discuss investment opportunity provide information so the client sees the property as a valuable investment even if they were not explicitly looking for one. Highlight the benefits and the potential return on investment.

• Emphasize Current Market Conditions: Convey that the present is the best time to make a purchase. Utilize relevant market data to show trends and advantages of purchasing a property now.

Types of Properties

• FLAT. From studio flats, to maisonettes and 2-story flats, a flat is a living area that is self-contained and in one part of a building. A building is usually split into individual flats, and the communal areas include shared spaces, e.g., lifts, stairwells, receptions, etc.

• TERRACED. A terraced house is defined as a house built as part of a continuous row where the attached homes share side walls. One of the main reasons terraced houses are popular is because they are a fair amount cheaper than detached and semi detached homes.

• SEMI-DETACHED. A semi-detached house, like an end-ofterrace property, shares a single side wall with another home. Unlike the end-of-terrace house, though, a semi is connected to another single dwelling, built as a pair, as opposed to a large row of houses.

• DUPLEX. A duplex house is a residential building constructed on two floors. While there are two floors in duplex houses, it is sold together and owned by an individual.

• END OF TERRACED HOUSE. Although very similar to terraced houses, an end of terrace house is as it sounds - a house that sits at the end of a row of houses.

• DETACHED. Detached houses are standalone properties that do not share any walls with another property. Widely regarded as the pinnacle of home ownership for most, detached homes are the most private dwelling you can buy.

Amenities

Amenities are the non-essential features of an apartment that makes living in the development easier, more enjoyable andor more productive.

• Gym

• Pool

• Sauna & Spa

• Balcony or a Patio

• Concierge

• Playground

• Community Center

• Media room

• Community events & classes

• Lounge & Working Zone

• Library

• Parking space

Incentives

There are many perks of buying a new-build property that make them a popular option. They are more energy-efficient and also come with a 10-year building warranty. In addition to this, developers may offer other incentives.

• Payment of stamp duty or legal fees

• Upgrades to the property, such as a higher-spec kitchen or different flooring

• Furniture packages

• Parking space

• Discount

What is service charge?

A service charge is a fee collected by landlords to pay for property maintenance. If you own a leasehold flat, your landlord has certain responsibilities for your property such as repairs, general upkeep and insurance.

Service charge structure

The lease will give the dates of the service charge period and how often the payments are due. The service charge period is often a year, but payments may be due every six months or every three months. Your lease will usually set out the percentage or proportion of the service charge that you must pay.

The service charge is based on an estimate of the running costs for communal areas of a property, therefore it is dependent on the size, location and age of the building.

New building developments now often feature a wide range of communal amenities such as gyms, pools, and lounges-all of which lead to a rise in the service charge.

FREEHOLD vs LEASEHOLD

Freehold

If you own a freehold property, it means you own the building and the land which it stands on. You will be named as the "freeholder" in the Land Registry and owning the "Title Absolute".

Pros

• Ownership of the property and the land it sits on

• Complete control of the property

• Not liable to pay ground rent or service charges

Cons

• Freehold properties are typically more expensive to buy

• You are liable for all aspects of the property, including maintenance

Leasehold

When you buy a leasehold property, you own the property (not the land) for the length of your lease agreement with the freeholder (up to 999 years).When the lease ends, ownership returns to the freeholder, unless you can extend the lease.

Pros

• Leasehold properties are often cheaper to purchase

• Leaseholder is not usually responsible for maintaining communal areas

Cons

• There may be restrictions on how you can use the property(e.g., keeping pets, smoking indoors, etc.)

• You may be liable to pay ground rent, service charges, and/or admin fees.

What is Ground Rent?

This is typically a regular payment made to a landlord when a leasehold property is purchased. This may be nominal or "peppercorn" rent and therefore do not need to actually pay the amount. This is separate to the service charge.

Fixed or escalating?

Ground Rent can be fixed or escalating. If it is fixed it means that it remains unchanged throughout the term of the lease. Escalating Ground Rents will increase during the course of the lease. The lease will specify when the Ground Rent increases and by how much.

Peppercorn

Peppercorn- low or nominal payment made by the leaseholder to the freeholder to maintain a legally binding lease agreement.

Final Note

London’s real estate market is resilient, prestigious, and full of opportunity. Whether guiding buyers or advising investors, your expertise brings clarity and confidence. Real estate isn’t just about property—it’s about shaping futures.