Here at Manse and Garret Property Search we source properties in London’s best areas and on London’s best roads. However only occasionally do we come across properties in London’s best buildings – buildings so unique and well known that they often command a higher price tag than other comparable homes in the area. We always have to ask ourselves, is the extravagance of the address worth the extra money?

When the GLC was abolished in 1986, the grand, Ralph Knott designed “Edwardian Baroque” building located on the south bank of the Thames became surplus to requirements. The site was eventually sold in 1992 to the Japanese property developer Shirayama for a reported £60m – just before a recession and property slump. Given the economic climate, this figure raised a few eyebrows in the property world and some were concerned that Shirayama would not have the money to convert the building, having already spent so much to procure it. With hindsight it was a solid investment. The luxury hotel, aquarium, museum, exhibition space and restaurants attract over 17million visitors a year. The converted flats sell for around £800 – £900 a square foot – outside of the popular Shad Thames, these levels are uncommon for the SE1 postcode. These well-located flats, in the handsome Portland Stone building with excellent views have never failed to attract buyers and tenants.

Last year it was announced that the long term viability of the Houses of Parliament as the seat of British government was being questioned. Having always been an expensive place to run, the whole building is suffering from subsidence, and is slowly sliding into the River Thames. Thought to have been affected by the excavation of the Jubilee Line extension in the 1990s, and the underground car parking complex on site, surveyors have said that repairs to the building would take at least five years to complete. Government accountants argue that it doesn’t make sense to spend an estimated £1billion to repair an estate that is worth £1billion, although I am sure that English Heritage might think otherwise.

The Houses of Parliament, if converted to commercial and residential premises would no doubt be an even more popular housing and property destination than County Hall.  With 872 ft of river frontage on a site of approximately 8 acres, the number of luxury residences that could be created would certainly tempt any number of wealthy buyers, many of whom would happily buy off-plan to own such a desirable piece of real estate in one of London’s best known buildings with the SW1 postcode to match. Proximity to Westminster tube, to the West End and the caché that comes with owning property in one of the world’s most iconic buildings would certainly create demand for any residential property that was available on site and it is likely that the price per square foot achieved would be well above the £1,500 average that this part of Westminster currently commands.

So it seems sometimes paying more for property in one of London’s best buildings can pay off, not to mention also giving you an address everyone will recognise and a home or business everyone will want to come and see. If you need Manse and Garret to locate a unique home for you or a unique addition to your property portfolio please don’t hesitate to get in touch.

Technorati Tags: Historic buildings, House prices in London, London property, Planning Permission, property market news, Westminster house prices

Tags: Historic buildings, House prices in London, London property, Planning Permission, property market news, Westminster house prices

At Manse & Garret, we are always looking out for information that can affect our Clients.  Halifax recently claimed that it now costs (on average) £100 less per month to buy a property, than it does to rent the same one, which may have an impact on our buy-to-let Client’s.  In the last year, there has also been a rise in the number of first-time buyers successfully securing a mortgage.

First-time buyers have been able to climb onto the property ladder due to the re-availability of 95% mortgages and a number of schemes, such as FirstBuy, Lend a Hand and the Save to Buy Scheme launched by Nationwide.

At first glance, these schemes seem to be just what is needed for ‘first-timers’ to climb onto the bottom rung of the property ladder.  However, regardless of whether someone has spent years saving up for a 25% deposit, has a generous Aunt willing to put money aside, or manages to get backing from their Local Authority, this still does not guarantee that the mortgage application will be successful.

For a start, a bank or building society will only lend four times the amount of an applicant’s wage.  For those earning the minimum wage (roughly £12,600 per year) the amount a mortgage provider would lend is £50,400.  The average annual salary in the UK is around £26,200, which would generate a loan of £104,800.  This means that those earning the average salary would (at most) be able to purchase a 2 bedroom property in London – but only in areas such as Thamesmead, Abbey Wood or East Ham.  Those on the minimum wage would be able to afford a garage in Prime Central London, a one bedroom houseboat, or a share in a new build property, (which also works out more expensive per month than buying outright).

Realistically, unless you are fortunate enough to be able to purchase property outright, or to earn at least the average UK wage, the chance of owning your first property seems to be slim-to-non-existent.  Whilst there has been a rise in the number of first-time buyers purchasing their first property, I suspect that the proportion of first-time buyers unable to buy is much higher than the proportion who are.  The mortgage schemes available, for some, are most definitely a mirage, as they lack the substance necessary to be tangible.

Fortunately for top-end Buyer’s Agents like us, our first-time buyers are either able to meet the requirements for a residential mortgage, or have the funds necessary to purchase a property outright.  We are well placed to help them secure their first home in the right area and at the right price, as we know how property transactions work in the UK.  If you are looking for your first (or second!) property in London or Brighton, give us a call today to see how we can help you with your search, as we are officially the best Property Finders in London.

Technorati Tags: First time buyers, Mortgage Lending, mortgage schemes, mortgages, property, property market news

Tags: First time buyers, Mortgage Lending, mortgage schemes, mortgages, property, property market news

Musings of a London Property Search Agent

Property Search Agents like us have felt the soft bounce as well-priced property goes to sealed bids and we remember the heady days of 2007 when a good part of every day was spent ensuring we were given first refusal on new properties to the market.  So it is no surprise that Hometrack have produced the figures to support the anecdotes. 

A further 9.4% increase in sales agreed in May brings the 3 month increase to over 43% according to Hometrack.  The renewed market confidence is without doubt due to increased confidence and lack of supply.  The volume of property for sale has risen by 2.5% over the last 3 months but the number of would-be buyers has significantly increased as first-time buyers look to get their foot on the ladder, investors increase their portfolios and families needing more space just don’t want to wait any longer.

Hometrack report that the average agreed sale price is over 90% of the asking price for the first time since August 2008 a statistic which is in itself interesting.  Given the rather dire state of the property market last year, I am amazed that anyone paid 90% of the asking price in March 2008, never mind August.  Having said that, I am aware of two propertiesin Belgravia, which have been sold for several million over the price we discussed with vendors between March and August 2008.  In both cases the buyers were overseas property hunters mistaking additional value caused by a deflating pound for realistic prices at the time of purchase. 

 If any readers know any such people - please send them our way as this London Property Search Agency will undoubtedly save them a great deal of money!

Technorati Tags: House Prices, housing market news, London Property Search Agents, property market news

Tags: House Prices, housing market news, London Property Search Agents, property market news