Finding a Home to Share: A Tale of Unconventional Co-Ownership in London
A Perfect Match
Stephen Downard, 31, lived with his roommate, Benjamin Grout, 46, in a spacious rental in Belsize Park, a leafy, affluent neighborhood in London. For nearly a decade, the cohabitation had been a harmonious experience, with each working in financial services, aspired to own a place of their own in the city.
A Journey to Co-Ownership
However, the London market posed a significant challenge, with the average sale price for an apartment standing at just below 1 million British pounds (or $1.3 million), according to Zoopla, a British property search site. After years of saving for a deposit, the duo ultimately decided that co-owning a property was the best option.
Location is Key
As a dedicated member of Third Space, a chain of upscale fitness clubs in London, and a trainer at the Islington branch, Stephen Downard’s home search was centered around the gym. Benjamin Grout was more than happy to oblige, recognizing the importance of location to his roommate.
The Right Partner in Real Estate
They enlisted the expertise of Michael Smit, an estate agent with Savills, who noted a surge in friends co-buying properties in London. He emphasized that with increased mortgage rates and the cost of living rising, co-owning could lead to a better property in a better location.
A Declaration of Trust
The duo drafted a declaration of trust, a legal document establishing joint ownership, and split all costs and contracts equally. With the guidance of a local mortgage advisor, they capped their budget at £1.2 million ($1.5 million), hoping to spend under £1 million ($1.3 million).
Priorities and Preferences
Their priority was a large living room for socializing and separate bathrooms – essential for their living arrangement. Stephen Downard was eager to find a property that required some updating, allowing him to negotiate a lower price and perform renovations.
The Search Begins
With Benjamin Grout’s blessing, Stephen set out to explore listings, keeping his roommate informed every step of the way.
Conclusion
The Downard-Grout duo’s successful co-ownership experience showcases the potential benefits of this unconventional approach to homeownership, particularly in expensive cities like London. By sharing the costs and responsibilities, they were able to find a desirable property that met their needs and budget.
Frequently Asked Questions
Q: What is the average sale price of an apartment in London?
A: The average sale price is just below 1 million British pounds (or $1.3 million), according to Zoopla.
Q: What are the benefits of co-owning a property?
A: Co-ownership can lead to a better property in a better location, as it allows friends or roommates to split costs and responsibilities.
Q: How do you go about drafting a declaration of trust?
A: A legal document establishing joint ownership, it is typically drafted with the help of a lawyer or real estate agent.
