Property Finance: Can you afford it?

Studio apartment, pounds 260,000 Knights Court, St John's Sq, Clerkenwell, London ED1 Agent: Hurford Salvi Carr, 020 7791 7071
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What you get: Fourth floor studio conversion of an interwar office building comprising open plan living, sleeping and dining area with oak timber floor, high ceilings and floor to ceiling windows. High spec Italian white gloss kitchen with granite worktops, glass splashbacks, integrated appliances and silver green slate floor. Contemporary bathroom with white Villeroy & Boch suite.

Where: In the heart of Clerkenwell, 10 minutes walk from the Square Mile, St Paul's Cathedral and The Old Bailey. Nearby Farringdon Station has Thameslink services to Gatwick and Luton airports.

What will it cost to buy? Quotes from Nationwide 0800 30 20 10

Both these mortgages fall into the higher loan to value band

Minimum deposit (5%) pounds 13,000

Mortgage needed (95%): pounds 247,000

Joint income required (x2.75): pounds 138,182

Single income required (x4): pounds 95,000

Two-year fixed rate at 5.45% reverting to bank mortgage rate currently 5.99%

Monthly payments of pounds 1,121 (interest only); pounds 1,509 (repayment)

Two-year tracker at 5.29% reverting to bank mortgage rate currently 5.99%

Monthly payments of pounds 1,088 (interest only); pounds 1,485 (repayment)

Reservation fee: pounds 389

Valuation fee: pounds 350

Other costs:

Service Charge: pounds 1,000 approx pa

Stamp duty: pounds 7,800

Council Tax: to be assessed by City of London

Legal costs to include land registry and search fees: around pounds 1,500 plus

Who will buy it?

A city worker in their early 20s looking for a pied-a-terre in one of London's most interesting streets or a buy-to-let investor looking for an affordable entry to the central London market. The next step up in Knights Court is a one-bed apartment costing pounds 355,000.


The studio with a 125-year lease is one of 13 apartments including a penthouse, developed by Modern City Living and the lack of properties at this size and price in the immediate area should give it a "rare" tag. It would rent for around pounds 250 a week. It's small but perfectly formed and it's wired up for multimedia. The impressive entrance lobby has an audio visual door entry system and a lift to all the apartments. Offices have been retained on the ground and basement floors. While the neighbourhood is buzzing during the week - numerous bars, clubs and restaurants abound - the weekend is peaceful. Be warned, the local market charter means local pubs can serve beer and stout from 6am weekdays.

Information correct at time of printing. All quotes subject to status.