The basics of acquiring banking property in the UK

The concept of ‘banking property’ includes all the property that was confiscated, arrested or bailed. Bank property in London forms a self-sufficient segment, which is intermediate between the secondary and primary housing market (new buildings). The investors who know what’s what in this practice, take the opportunity to invest in this type of facilities and oftentimes succeed due to beneficial terms of deals. The city of London is chosen due to its economic stability and rapid development (the city generates around 24% of the national GDP), which is characterised by constant price growth in the cost of housing and high demand for residential premises. All this serves as a guarantee for almost risk-free, profitable purchases.

By the present moment the British banks are among the largest owners of real estate, who are ready to provide the investors with a variety of proposals. Virtually all the major banks in London work with real estate companies, whose task is the sale of all the objects in the possession of the banks. Importantly, bank offers are sold at a price lower than the average market rates.

To clarify the prospects of the potential profitability of the affair, having a comprehensive understanding of the advantages and disadvantages of a potential deal is absolutely essential. Thus, confiscated, seized or planted banking property in many cases could represent a promising deal in relation to the purchase of new or resale property. The main advantage of this segment is costs – the purchase of real estate from bank is mostly a prerogative of investors who are limited in the size of their own capital allocated for investment. In practice, implementing the sale of bank property, is below the average pricing level by 30-40% on average. However, the price difference in some cases can reach up to 80%. Factors that affect such a large fall in prices will be announced later.

Another advantage that awaits investors seeking to buy property in the UK bank is financing. The funding comes from the banks, who control the object. London banks are interested in attracting customers not only for real estate at affordable price, but also for associated with property investment project. First of all, it is an opportunity to implement a property that is listed on the bank’s balance sheet. Secondly, the ability to provide mortgage to customers who purchase the object. And thirdly, providing loans at low interest rates to eliminate the risk of non-payment of a mortgage loan. The main recommendation when choosing a bank is to review the bank’s portfolio and real estate conditions as for mortgage lending. These conditions will be largely impacted by the area where the object is located and its total cost. As a rule, the maximum amount of a mortgage for non-residents of the United Kingdom reaches 70%. The client will incur costs that accompany the procedure of registration of the transaction for the sale, as well as cover the associated legal expenses; mainly the services of conveyance solicitors.

The Lucrative Real Estate Investment Areas In London By District

The most promising areas for investment in London real estate in the current market are Battersea, Nine Elms and Vauxhall, as these areas are focusing on long-term, really financially attractive projects. In Battersea and Nine Elms a whole neighborhood is erected, here in just 10 minutes of walk you can reach Sloane Square in Chelsea. On the one hand it’s an expensive offer, but on the other, buying an apartment in London, in the new district, where 90% of the objects represent luxury housing, is the dream and goal of many. In addition, the area is very close to Chelsea, so the demand is very high, too.

london investment areas

The most famous and popular areas of London outside England are Chelsea and Belgravia. Not surprisingly, prices in Chelsea always grow, because the demand for apartments in Chelsea exceeds supply, and the interest of international investors to the maximum. Successful bankers and brokers in London give their preference to invest in real estate in Chelsea, and their families love this area for endless shopping opportunities, cafes and designer boutiques. The areas of Chelsea and Kensington boasts half of the 100 most expensive streets in London. For example, Kensington Square is the UK’s most expensive street, this is where the average price of real estate equals 5.5 million pounds.

It is also considered to be advantageous to invest in real estate area of Battersea, thanks to a good location, as well as a number of aspiring construction projects. Battersea is also considered one of the best areas in central London and has a gorgeous location on the River Thames. Over the past three years, the area scored the highest price of population growth in London. Currently, the area is planned for massive restructuring and by 2020 it is expected to actively rise in price of real estate. In addition, the planned construction of two new metro stations, eight complexes with restaurants and shopping centers is also approved.

The demand for new buildings in prime London was always greater than supply, so in these areas no new premises are built according to conveyance solicitors reports, although suddenly you may get lucky, and you will be able to buy an apartment in a small building in the prestigious location. For example, over the past 10 years, the first new premium in this area was Vicarage Gate in Kensington.

In central London, Liverpool Street was one of the first areas to be updated, so it is worth paying attention to this area of London and its surroundings. According to forecasts in five years the cost of real estate in Liverpool City could increase by 23%. Also the number of projects is actively constructed in the quarter of London Bridge: new homes, shops and business centers pop out.

The most promising area in south-east London is Greenwich. Experts say that real estate in this area will increase in price by 19.4% over the next five years. In the north-east of London one of the most promising districts is Stratford, where the 2012 Summer Olympic Games were held and around 2800 housing units have been built. According to experts, in the area prices will rise substantially, as in Greenwich, by 19%.