Buying An Apartment useful information

Investors purchase many apartments in the London area requiring mortgage solutions.  The pricing rose significantly during the prior decade.  The price of an apartment includes that of a health club membership. The gymnasium membership, within certain areas of the United Kingdom, are not cheap.  In comparison, some condos in the U.S. that take on the same lifestyle-concept as the London apartment, offer resident activities and various venues for physical activities.  Such activities are paid by way of condo association dues in the United States.


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Service charges run in accord with property amenities:  


Service charges, with regard to purchase of a London apartment residence, includes hot water and heating.  The service charges, for the preceding amenities, can come in a bit pricey.  Less expensive apartments are found in the Docklands, and just south of the Thames River.  Loft conversions, in the area are up for purchase at £250 per ft2.  Investors, purchasing apartments, in the United Kingdom, are doing well from the standpoint of investment.  The potential to let such a residence is very good---when the rental market is not saturated.  The apartments that do the best are those providing plenty of space; along with two bedrooms and a nice view. 




Purchasing an apartment in the United Kingdom or a "condo" in the U.S. comes with additional fees for upkeep: In the United States, the additional fees set aside for upkeep and other amenities are referred to as association dues.  The preceding means that the condo owner can pay from $100 monthly to much more.  The association dues are in accord with whether or not the property is considered a "no-frills" property investment or a luxury unit.  When the condo, in the U.S., has security; is a gated community; comes with a first-class gymnasium and swimming pool, it is up to the investor to assist in paying for those niceties.  Each month, in the United States, a portion of the condo fee can go to the reserves of the condo development.  The reserve is set up to fund projects such as repainting the exterior of the building.  When a pipe bursts and there is not enough, within the reserve, to fund the repair, the investor is asked to pay an assessment.  This assessment can range in price from a very small price to one that comes in at a lofty price.  As it pertains to the preceding, it is essential, then, that the community is run by a highly reliable management company.




Communal areas require additional service charges:


The service charges in the United Kingdom provide upkeep for communal areas.  This charge is calculated according to the investor's share, in the development. Service charges, in the United Kingdom include heating and hot water.  The building insurance is generally provided by the Freeholder; however, the resident is generally required to have third party insurance for damage that may come about due to flood or fire.


Additional charges are part of the overall monthly price of the investment: 


It is appropriate to point out that whether the purchase of an apartment or condo, (as it is referred to in the U.S.) is in the U.S. or U.K., additional fees with regard to the communal area will apply.  It is just that the fees may be relative to different communal areas or amenities.

It is always advisable to purchase a U.K. property with the services of a caretaker provided:

Communal areas, in the U.K., where there is a caretaker, will have higher fees than areas that do not provide the service.  However, it is never advisable for the U.K. apartment owner or investor to invest in a property without the services of a caretaker.  Using a caretaker, is essential, since the building remains in better shape.  Higher fees are not necessarily a bad thing:  as long as the investor or resident finds them affordable.  Additional fees, vary considerably, from one property to the next, and can run into thousands of pounds:  In example, £5,000 a year is not out of the question.  The fee is generally associated with a luxury unit.  This type of fee is in accord with terrific amenities such as a swimming pool and a health club.  The fee can increase on a per annum basis. 


The investor, whether doing business in the United States or the United Kingdom, is wise to check on service charges or association dues (U.S.) and other special charges prior to property purchase.




Additional fees are generally billed inside of the U.K. on a monthly or bi-annual basis:


The fees in the U.K. are generally billed monthly or bi-annually.  The fee is adjusted at the end of the year. When the last fee comes to the attention of the investor or resident, he may be in for an unpleasant surprise:  that is, if he does not have a true grasp of what is being charged---overall.  Too:  it is wise for the purchaser to make note of the service charges billed to the previous owner and for the previous year.  The purchaser can request to see a copy of the service charges for the prior year.  The prior owner is generally more honest when stating charges, if a copy of the billing is requested by the purchaser.




A Leasehold Valuation Tribunal hear disputes regarding fee disagreements between landlord and resident:


Inside of the United Kingdom, disputes over service charges can become a touchy subject for some.  Disagreements between the landlord and owner are heard by a Leasehold Valuation Tribunal (LVT).  The panel consists of the solicitor, a valuer and a third party expert.  The tribunal is not part of the county court.  In order to avoid any issues, it is always a good idea to have the legal contract looked over by a solicitor.




Ground rent is generally a fixed amount:


The ground rent, on a U.K. apartment, is generally around £100 to £200, yearly.  The legal agreement should state if this is a fixed amount or if the rent can be reviewed after a certain time-period. 




Beautiful historic private gardens add to the value of the London property:


Many properties, in the London area, have beautiful and private communal garden settings.  These gardens are for the exclusive use of persons residing within the units.  The gardens can add value to the property.  The shared gardens, within the London area, date back to the 1800s.  The gardens were used by the landed gentry.  The landed gentry would arrive in London for the season.  The gardens normally have very inflexible rules attached.  Normally, no pets are permitted in the historic gardens---however, that said, it is not unheard of that owners may be able to exercise their dogs in the area. The tranquil, historic garden, though, is not the appropriate venue for ball games, resident Barbecues, parties or children to play--lacking supervision.  The peace of the garden is of the utmost importance.  As it pertains to the historic garden, the resident receives a key to the area, once he or she pays the annual fee.