Property as investment

Investing in property in Great Britain is reasonable and safe. Great Britain is situated on islands which cause the lack of free land and instant raise of prices for property. The 2012 Olympic Games in London also makes for it. The National Housing Federation (NHM) research results showed that prices for property in the UK will rise up to 40% during next few years.

Clearly, the purpose of the purchase needs to be defined. One would rarely recommend investment in property for a quick capital profit (12-18 months) unless a site has been identified where obtaining a new planning consent could significantly increase the value. However realistically, property is for a person or organisation looking at a longer term investment of 4-5 years. There can be no guarantees that one will make money though in the long term it is a safer bet to put money in property than anywhere else. With proper investigation and advice, an investment in property will be both worthwhile and profitable.

With residential property, the rent achieved will usually cover the cost of any money borrowed to purchase but there is unlikely to be a great surplus above that. However, one is looking for a capital return in the longer term on the purchase price rather than simply a profit on the income in the shorter term. The rent will usually equate to 8-15% of the purchase price of the property per annum.
Residential property is usually let under a Shorthold Assured Tenancy which can guarantee that the tenant will leave at the end of the period. These can be renewed on an annual basis.

A well located flat could be also used both for the owners` trips to London and in the time when it is vacant, rented out for holiday lets.
Given the changing laws in respect of leasehold ownership and the rights to renew a lease, many properties with short leases are undervalued on the market and when the lease is renewed, which requires a capital sum payment calculated in accordance with a standard formula good gains can be made.

Law Firm’s provide professional search and selection of property in the UK for investment purposes. We identify what is available responding the client’s budget and provide detailed reports on the properties including information on the probable tenancy. We also negotiate the price and carry out the conveyancing procedure. As mortgage is available in British banks both for British citizens and non-residents, we also advise and provide mortgage. Concierge services in relation to property maintenance, renovation or tenancy are also available upon request.


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