Once you’ve done all the leg-work in finding your London flat, you can then enjoy the pleasure of paying for it. In London, signing a lease agreement on a flat requires you to pay:
- 1st month’s rent in advance
- 6-week deposit
Bearing in mind that rent prices in London are quoted in weekly terms, to arrive at a monthly figure, you must multiply the weekly rent price by 4.33—i.e., times 52 (# weeks in a year) and divided by 12 (# months in the year). So, for example, if your negotiated rent price ends up being £300 per week:
1st month’s rent = £300 * 4.33 = £1,300
6-week deposit = £300 * 6.00 = £1,800
Total amount due to lettings agency/landlord = £2,100*
(*not inclusive of admin fees, which vary by agency. If you are placed through London Relocation Ltd., this fee is waived)
The best way to pay the amount due to the applicable agency/landlord, then, is by bank transfer, as it helps you avoid:
- carrying massive sums of cash around;
- waiting for a non-UK bank check (‘cheque’) or traveller’s check denominated in a currency other than GBP to clear, which can take several days if not weeks; or,
- incurring 3-5% charges for using a credit card.
To facilitate this process, part of London Relocation Ltd.‘s service is getting you set up with your UK bank account, so we’re a worthwhile investment!
Related posts:
- London Relocation’s London Property Tip-o-the Day
- M.L.S : M.I.A.
- London Relocation Services and Property Finders, the Expert Realtors!
- London Relocations: London Rental Market
- If It’s Too Good To Be True…
Interesting! I didn’t know about the six month deposit. In the US it’s usually one month’s rent/one month’s deposit. Do you get the 6 week deposit when you leave?
I know…that extra 2 weeks’ deposit sprinkles that little bit of extra salt in the financial wound. The deposit is registered with a third-party deposit protection service for safe-keeping to ensure that you will get it back when you leave (provided the flat is left in good condition, of course).
Oh, and I just revised this post to mention the extra admin fees that lettings agencies will charge. It depends on the agency and can be anywhere from around £100-£300. Most agencies waive this fee on London Relocation’s behalf, and if they don’t, we just absorb it so it doesn’t get passed on to our clients.
Err I mean six week deposit….
Yowzah, a six month deposit would be horrendous!
Although…that’s not too far from the truth for students, who are typically required to pay 3-6 months’ rent up front! Landlords are very wary of tenants without an income, so are pretty inflexible on this point unless the student can provide a UK-based guarantor of the funds.
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