As property prices continue to increase both in Leicester and across the country, many people may wonder whether they can afford to buy a property independently in Leicester.
Now, the success of being able to afford a home by yourself usually comes down to having good financial backing or trying to get the best deal possible, which can be down to luck.
In some cases, people may find themselves in a relationship where their partner has a bad credit history, which restricts their chances of successfully getting a mortgage. In those cases, their only route would be to apply for the mortgage themselves, effectively buying alone.
Whatever the case, one thing is certain: It’s not impossible. With the right knowledge of the local market and a well-thought-out plan, you can navigate the property buying process in Leicester successfully. This article is here to provide you with that knowledge and guide you towards your property ownership goal.
Let’s get started…
How can a single person buy property?
So you want to buy a property by yourself, what are your options? Well, it’s no different from a purchase made with the help of someone else. You’ll likely achieve a purchase in one of two ways:
Cash
Now, this may not be the most feasible option, especially in today’s world. However, it is a relatively simple process if you’re financially capable of purchasing with cash.
However, for those who aren’t so lucky, there’s another, more common route that you can consider:
Mortgage
Mortgages are available for those looking to purchase a property alone, whether you’re a first-time buyer or already a homeowner. The only question remains: how much can a single applicant get for a mortgage?
This is where it can get technical, as lenders will assess a single mortgage applicant based on their income, the overall deposit or equity held in the property, and the usual factors. The process of getting a mortgage as a single buyer involves several steps, including pre-approval, application, and approval. It’s important to understand these steps and be prepared for the documentation and financial information you’ll need to provide.
However, as only one income is being submitted for the application, getting a more considerable mortgage value may be more challenging than applying with two applicants.
The usual multiplier is applied when applying for a mortgage alone. You can typically receive between 3 and 4.5 times your income. So, if you earn £30,000 a year, you could borrow between £90,000 and £127,500.
Although you may not be eligible for as much money as you would with a joint application, the next step is figuring out what you can afford to purchase. With a clear budget, you can begin to narrow down locations and areas where you will likely succeed in buying a property.
Let’s look at some of the options below:
Where is the cheapest place to buy in Leicester?
Before we explore the cheapest places, let’s look at the current average property price in Leicester. According to Zoopla, the current averages are by property type.
- Detached: £417,123
- Semi-detached: £271,063
- Terraced: £214,169
- Flats: £257,758
This provides an overall average of £273,272 for properties in Leicester. So, with that considered, where is the most affordable place in Leicester?
LE1 – City Centre, the cheapest place to buy property in Leicester
According to recent news reports, LE1 isn’t just the cheapest place to purchase property in Leicester but across Leicestershire. This is a promising sign for single buyers with limited financial backing. The city centre has more flats than other suburbs, which significantly contributes to the average. However, according to Rightmove, the average selling price for a flat over the last year was £134,771. Yet for houses, terraced properties were sold for £190,000 and semi-detached properties at a higher cost of £240,500. However, all three types of properties are still below the average for Leicester, making them affordable options for single buyers.
LE3 – Braunstone, Glenfield, and New Parks
The next cheapest place to buy property in Leicester is within the LE3 postcode. According to Rightmove and Land Registry information, the average property price in the area was £241,123 over the last year. Quite a jump from the prices in LE1, right? This may be because the most popular property sold in the area was semi-detached properties, which had an average price of £247,505.
LE4 – Beaumont Leys, Belgrave, Birstall
The third cheapest place to purchase property in Leicester is the LE4 postcode area. Here, Land Registry and Rightmove indicate that the overall average price for the area was £255,803 over the last year. Similar to LE3, the higher average price is due to more semi-detached properties being sold, which were worth an average of £269,299.
So, with those cheapest areas considered, if you’re looking to finance most of the purchase with a mortgage, then a property in the LE1 postal code is likely to be the most feasible. For most people navigating the first-time buyer market in Leicester, these three areas will be the most popular options.
Should you buy property in Leicester?
Now that we’ve discussed the average prices and how much a single buyer can borrow, you may wonder if it is worth investing in a property in Leicester.
If you’re looking to buy a property that will be your home for the future, it is worth the investment due to its sentimental value. However, if you’re looking to buy a property as part of an investment, either a buy-to-let or to sell in the future, then you’ll need to look at the numbers in greater detail. Generally, though, property prices in Leicester have continued to increase, providing a secure investment opportunity for those with a long-term vision.
Purchasing as a single buyer
Purchasing a property as a single buyer can offer a few hurdles, but this doesn’t mean that it’s impossible. Sometimes, the right property can materialise out of nowhere, and you’ll be able to get yourself on the property ladder.
Some buyers may have to adjust their expectations and focus on a property type more likely to be within their budget. This can be a little flat as a short-term measure to build equity. Building equity means increasing the value of your property over time, which can be a smart financial move. However, making a flat challenging can also be difficult, so if you’re looking at selling and buying something more suitable in the short term, you’ll need a Plan B.
This is where we come in.
With We Buy Any Home, you can sell any property and receive a competitive offer based on the market value. We pride ourselves in offering selling timeframes suited to you, so if you need to sell fast, we can purchase your property in as little as seven days. Get in touch to find out more.
