The Process of Buying a House Worth £500,000 in London

Step 1 - Booking

Booking fee: £5,000
This fee confirms the intention to purchase and is deducted from the total payment.

Step 2 - Contract Exchange

%10 peşinat (rezervasyon düşülerek): £50,000
Payable when signing the contract.

Step 3 - Interim Payment

Additional payment after 1 year: £50,000
Depending on the length of the project, it is usually done before delivery.

Step 4 - Remaining Balance

Total balance: £400,000
Payable on delivery.

Step 5 - Mortgage

Mortgage (%75): £300,000
It is covered by a loan from the bank.

Step 6 - Out of the Investor's Pocket

Total cash contribution: £100,000
(£50,000 down payment + £50,000 interim payment)

Conclusion

Investor in this model, £500,000 a house that's only worth £100,000 have by depositing cash
it happens. The remaining £300,000 is financed by a mortgage. Rental income with buy-to-let model,
self-financing the property by largely covering the mortgage payments
provides.