In London, He and his Roommate Became Co-Owners. What Did They Find for Under £1 Million?

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Stephen Downard in London, where he recently sought to buy a two-bedroom apartment with his longtime roommate Benjamin Grout.

Stephen Downard spent much of his 20s in what he called an ideal situation for a single guy in London: He shared a spacious rental with a longtime roommate in Belsize Park, a leafy, affluent neighborhood tucked between the sprawling meadows of Hampstead Heath and the 410-acre Regent’s Park.

Mr. Downard, 31, had lived peacefully with Benjamin Grout, 46, for nearly a decade, finding an easy rhythm. Each worked in investment banking and aspired to own a place of his own in the city.

“Buying a flat was something that was always in my head, and I had been saving for the deposit for years,” he said.

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But the London market always held them back — the current sale price for an apartment averages just below 1 million British pounds (or $1.3 million), according to the British property search site Zoopla. Eventually, the two agreed that the best way forward was to continue on as co-owners.

“We have known each other for so long that it’s all buried in the mists of time,” said Mr. Grout, 46. “Co-buying is something I think more people should consider, especially in expensive cities like London and New York.”

Late last year, Mr. Downard began homing in on neighborhoods. He is a dedicated member of Third Space, a chain of upscale fitness clubs in London, and teaches a training class at the Islington branch. It was that gym that would anchor his home search.

Mr. Grout was happy to oblige. “Location for him was very key,” he said. “We both like living in the center of London, but he prospected our search.”

They worked with Michael Smit, an estate agent with the British brokerage Savills, who said he has seen a noticeable uptick in friends co-buying in London over the past few years. “With increased mortgage rates and the cost of living going up, you end up getting a much better property in a better location if you end up going halves with a friend,” Mr. Smit said.

The duo drafted a declaration of trust, a legal document establishing joint ownership of a property, and split the all the costs and contracts down the middle.

With guidance from a local mortgage advisor, they capped their budget at £1.2 million ($1.5 million), though they hoped to spend under £1 million ($1.3 million). The priorities were a large living room for socializing and two separate bathrooms — “we’re not a couple, so that was key,” Mr. Downard said.

He was eager to find a place that needed some updating so he could bid lower and do his own renovations. With Mr. Grout’s blessing, he set out to look at listings.

“I’m quite laid back, and happy with a wide range of various outcomes,” Mr. Grout said. “It’s quite nice to live with someone you get along with.”

Among their options:

No. 1

This two-bedroom, two-bath flat with 1,000 square feet was on the third floor of a pint-size building. The bedrooms were small but the living space was roomy, with a dining area and open kitchen with a breakfast bar. The carpeting had seen better days and the appliances were dated. But the location — tucked on a quiet side street in fashionable Clerkenwell and a short walk to Mr. Downard’s gym — was great. The £900,000 ($1.18 million) asking price was within the budget, though Mr. Downard felt the annual service charge of £7,000 ($9,200) was too high for a small building without significant amenities.

No. 2

This refurbished garden-level duplex in trendy Islington had 1,000 square feet, with good-sized bedrooms, a smaller bonus room and a private garden patio. Both bedrooms were on the ground floor (one with direct patio access) and the common areas were upstairs. The oversize windows, oak floors and new appliances made the unit feel fresh. The main bathroom had a mirror with a built-in TV and heated floors. Mr. Downard’s gym was a 10-minute walk away. It was a share of a freehold building, meaning no annual fee but they’d be responsible for maintaining it. The asking price was £1 million ($1.31 million).

No. 3

This two-bedroom unit with 900 square feet was on the third floor of a new development on the corner of a small park in Islington — close enough to Mr. Downard’s gym to easily make it to a 5:45 a.m. class. Its sleek, open layout included a kitchen that was almost too new for Mr. Downard’s tastes (no renovation needed), built-in shelving, and sliding floor-to-ceiling windows that stepped out to a small balcony with views of the square. It also offered a private underground parking space — a plus for Mr. Grout, who owns a car. The asking price was £900,000 ($1.18 million), with £5,000 ($6,500) a year in fees.