Steven Coogan's Property Buying Tips

Tips for buying property

© Steven Coogan Limited

Step 1: Put yourself in the best position

➢ Seek independent mortgage advice before you start your search.

> Speak to an independent mortgage broker.> Confirm whether you have an arrangement in principle.> If you have a minimum of 500,000 GBP in liquid capital, which will be separate funds from your cash deposit for the mortgage, speak to a Wealth Manager.> If you have children or are planning on having a family then map out an education strategy for the family first. > Trusts, family offices or other corporate advisory service provider this includes you.

Note: Your bank won’t necessarily give you the best rates so seek financial advice you maybe able use more complex finance and can use other assets to leverage your lending.


Step 1: Put yourself in the best position

➢ If coming from overseas:

> Check visa status.> Tax position home (place of origin) and abroad (UK).> Map out an education strategy for the family first before considering a location. > Transfer funds into a bank account UK for exchange of contracts to make sure you are in the best position to secure your new home.> Use an FX provider when transferring funds. > Consider your health care whilst in the

Note: When transferring funds banks can charge up to 4.5%. Whilst an FX provider will charge no more than 1.5%


Step 2: Property Research

➢ Match the budget to the correct location and ear mark 3 areas.

> Prioritize them 1, 2 and 3. > If education is the driver then you are going to be limited. That’s why it’s essential to map this out before you start your search.> Remember, just because you have the budget doesn’t mean you need to leverage it.

➢ Do some research to see what type of accommodation you can get and where. Don’t waste time, do this online:

> www.primelocation.co.uk> www.zoopla.co.uk> www.rightmove.co.uk

➢ Identify travel times, airport access, distance to work, local amenities such as gym, shops restaurants, school run etc.

> It’s important to get accurate travel times. Don’t rely on online maps as this can be a false reality (e.g. the school run traffic could be chaos).

Note: You will have to compromise somewhere no matter what your budget is.


Step 3: Sourcing

On Your Own:

➢ Register with the portals and all the local Estate Agents> Make sure you keep on top of the notifications and the Estate Agents.> Publish your interest on social networks.> If you source privately get a good Estate Agent instructed to see the transaction through. Private sales can be a disaster.

Buying Agent:

➢ You can instruct a buying agent to oversee the entire process for you. > Qualify the commit of their service.> A buying agent should have contacts and if you hadn’t instructed

them you may of not of discovered.> They should understand the process and use their expertise to

put you ahead of the competition. > You will need to qualify your resource.


Step 4: Negotiation Obtain as much as the information below as possible to give the best picture for negotiation.

➢ How many viewings has it had?➢ How many offers has it had?➢ How long has it been on the market?➢ How long is the lease (if it has one)?➢ Why are the vendors moving and are they sure they want to sell now?➢ What renovations have been done and do they have planning permission if required.➢ Where are the vendors moving to - is there a chain?➢ How much are service charges and ground rent? ➢ How long has the seller lived there?➢ What's included in the sale? White goods? Curtains? Wood burner? (You can offer subject to

these goods being included.)➢ Are there any parking restriction?➢ Have there been any subsidence problems?➢ Look at what is on the market and look at the local sold prices to give you a guidance on an offer.➢ Put your offer forward on what you think the property is worth.

Remember: Estate Agent acts for the seller.



Worth Finding Out:

➢ Have there been any neighbour disputes?➢ Who lives upstairs/downstairs/next door?➢ Local crime.➢ What's the council tax band? (This can be checked here: www.gov.uk/council-tax-bands).

http://www.gov.uk/council-tax-bands

Step 5: Once Secured➢ Once you have secured your new home instruct a property lawyer.

They will conduct due diligence on the property you are purchasing.

➢ Inform the bank, lender, mortgage broker to instruct a surveyor.

> If you are not using a mortgage, then instruct a surveyor independently. > A surveyor will make sure the property values up and is structurally sounds. This is subject to the type of survey you go for.> There are three type of surveys which are valuation, homebuyers and full structural. As a minimum we recommend a home buyers.> Once they report is back, read it. This may sound obvious but the surveyor has no duty to point anything out other than what is in the report.> List the points for discussion and contact the surveyor.

➢ Once the the lender is satisfied with the report they will issue a mortgage offer.


Step 5: Once Secured➢ Once the searches and all enquiries are back and satisfactory

your lawyer will arrange for the contracts to be exchanged.

> A completion date will be negotiated before this point.> A 10% deposit is the norm and will be required for security

on exchange of contracts and is non refundable. > You will also be required to insure the property by the lender

in the event any damage is caused to the property during exchange and completion.


Resources

➢ Buying Agent ➢ Portals

> www.primelocation.co.uk> www.zoopla.co.uk> www.rightmove.co.uk

➢ Independant Financial Advice (IFA)➢ Wealth Manager➢ Taxation➢ Foreign Exchange (FX)➢ Property Lawyer➢ Surveyors➢ Insurance➢ Removals & Storage➢ Healthcare


London Property Facts

➢ Prime Central London has outperformed gold over a 36 year period. Gold has risen by 802% and PCL by 2,685%.

➢ On average, Prime Central London properties have doubled in value every 8 years since the 1960’s.

➢ London property prices dropped by 20% in 2008-9, but 1.5 years later they had surpassed their previous peak by 20%. This period has been measured against the 1930’s great depression.

➢ London’s world-class property and educational institutions continue to attract the High Net Worth community.

➢ London is expected to maintain it’s top ranking for at least 10 years for the High Net Worth community, even in the face of competition from the emerging Asian economies.

➢ 70% of London Property transaction over 4 million are sourced via a buying agent.


for more information:+44 207 431 7606www.stevencoogan.co.uk

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Steven Coogan's Property Buying Tips

Real Estate

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