London’s cheapest home is a £41,000 boat

London’s cheapest home is a £41,000 boat

15:54 PM, 4th May 2012, About 12 years ago

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A garage hitting the market with a staggering £525,000 asking price in upmarket Knightsbridge, West London, has prompted a look for the cheapest homes for sale in the capital.

For homeseekers looking to buy outright, the cheapest home for sale in London is a one bed renovated houseboat in the Paddington Basin is on the market for £41,000, according to online property portal Rightmove.

The barge has central heating, a sleeping area with built in bed, fitted wardrobes and storage cupboards, reception room with access to the open deck, galley and a fully tiled shower room.

The least expensive home for sale in London is a flat in a renovated house in Genesta Road, near Plumstead Common, South London.

A deposit of £3,900 buys a 3% share in the one bed flat a short stroll from the common, while a rent of £165 a week buys the apartment outright without any mortgage or bank involvement.

Shared equity deals are popular on some property portals – but many are dressed up purchase options.

Purchase options are let to buy property deals aimed at first time buyers who cannot afford a deposit or who cannot raise a mortgage because they have a patchy working history or credit record.

Typically, the seller and buyer set a date for the purchase of the property at an agreed price – often the current market value.

The prospective buyer pays a non-refundable deposit and an agreed rent with the option of buying the property on the contract date.

If the buyer decides against the purchase, they move out with nothing more to pay, but lose the deposit.

Otherwise they pay what is due on the contract and they own the property from then on.

Consumer groups often criticise let to buy contracts as unfair to tenants.

By the nature of the deals, the tenants often have financial difficulties and cannot maintain the rents. If they fall into arrears the owner can evict them and keep the deposit.

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