London has always been a hugely alluring place for many people. Living the London life has a high price tag though and many people are turning to shared ownership situations to allow them to live in Central London. With London’s rental and sale prices rising, it might be the only option for some.
For years we have been conditioned to think that a shared house is something you do when you are first moving out of home, or if you finish University and want a few more years living like a student. The idea always seemed to be that you “grow up, get married and buy a house”. While that’s still a lovely idea for many, buying a house outright in Central London is no small expense. The capital city is a great place to live and attracts people from all over the world and while this is brilliant for the vibrant city itself, it’s a pain for those looking to rent or buy and struggling to find the money. A shared ownership situation would allow you to afford to live in a decent and desirable area of London, rather than trying to live on your own and only being able to afford a tiny place in the worst part of town.
Cheaper Than Renting or Buying Alone
The annual average rent for a two bedroom apartment in Central London is nearly 30,000, which is more than the average income. To buy the same property would cost close to 500,000. These prices are very high for those starting out on the property ladder. By buying into a shared ownership scheme you could be paying far less than either a monthly rental cost or a monthly mortgage payment to buy a whole property. Many of these schemes offer 25% purchase options. Bear in mind that eventually owning 25% of a Central London property is still pretty good going and with the way the city has ignored a number of downward trends in property prices over the last few years, the value is almost certain to go up. Check with your local estate agents in central London for deals happening near you.
A Better Standard Of Living
You could get a smaller mortgage by buying a very small flat in a less desirable part of London but really that defeats the point of living in London. You want to live there to explore the culture, the night-life and the people. Aim higher than just any old London postcode and instead part buy somewhere in a trendy part of town. There are a number of really exciting schemes being worked on in London that offer secured tenancy on part buy properties. Some of these sites have communal gyms and rooftop gardens, creating their own little communities. A 25% or 50% ownership stake in a beautiful apartment in a super trendy and desirable area is going to be worth far more in the long run than 100% ownership of an undesirable bed-sit on the very edge of London.
Edward Leslie has been writing about home renovation and property investments for a number of years, both online and in print. Please click here to know more about the latest schemes, information and updates.