Dos and don’ts for first-time London home buyers

Buying your first home in London is an exciting time. However, as a first-time buyer, mistakes like overshooting your budget by not factoring in the additional costs of property purchases or rushing with the due diligence process can prove expensive in the near and long term.

To avoid the common mistakes many first-time buyers make and not let regrets dampen the joy of homeownership, here are a few dos and don’ts to help you on this journey.

Do: Get pre-approved for a mortgage early

Many first-time buyers view properties with just a rough estimate of how much they can afford, only to later discover that they don’t have the budget for the property they like. Checking with different lenders for the best mortgage deals and getting pre-approval on your mortgage is crucial as it lets the seller know that you are a serious buyer who is financially ready. This proactiveness in securing your buying credibility increases your chances of getting a better deal.

Don’t: Underestimate London’s upfront buying costs

While first-time buyers get certain exemptions, they still need to pay stamp duty, which is 5% for properties above the £300,000 threshold. Similarly, you will need around 10% of the buying cost for the deposit and an additional budget to cover services such as conveyancing, snagging, surveys, furnishing and more. Always calculate the stamp duty and your mortgage when planning a purchase.

Do: Research neighbourhoods carefully

While distance to central London and proximity to railway or Tube stations are key factors determining the value and appeal of a property, first-time buyers must thoroughly research the neighbourhoods that fit their needs. From lifestyle amenities such as open spaces, shopping centres, restaurants and leisure venues to transport options, our detailed area guides will give you insights into diverse London neighbourhoods.

Don’t: Let emotions override your budget

As a first-time buyer, you may come across a property that catches your attention, tempting you to overspend and stretch your budget. Sellers and their agents can leverage buyer emotions by creating a false sense of urgency and informing about other buyers bidding higher for the same property. However, always get a proper property valuation and stick to your budget.

Do: Understand leasehold vs freehold

Most London properties fit into two categories – leasehold and freehold. While freehold properties give ownership over the house and the land it is standing on, apartments are usually sold on a leasehold basis, wherein the owner needs to pay ground rent and service charges to the freehold owner. Understanding the nuances of both types of ownership is crucial when buying your first home.

Don’t: Skip the survey or legal checks

While everything looks good on the outside, structural flaws or litigation could be associated with a property that will only be disclosed by proper surveys and legal checks. Conducting thorough due diligence with the help of qualified professionals, such as surveyors and solicitors, is very important when proceeding with a purchase.

Do: Use a local estate agent who understands the market

A local estate agent like Benham and Reeves, with 21 branches across London and operations worldwide, has the knowledge and experience to help first-time domestic and overseas property buyers make the right choice. Use their expertise and buying services to complete everything smoothly and systematically.

Don’t: Rush the process

Finally, buying your first home is a milestone that will help secure and build your future. Planning everything precisely and patiently waiting for the best outcome are underrated attributes that play a key role in a successful purchase. Therefore, it is important to take your time and allow things to get done smoothly without trying to rush the process.

While these are some good-to-know dos and don’ts before buying your first London property, the journey to homeownership is a rewarding experience that, if done correctly, will bring you immense joy and satisfaction. Contact us if you want to buy your first home in London, and we will help you make the smart move.