The rocker is determined to put her wild lifestyle behind her and settle down in Richmond, a south-west London area famed for its tranquility.
She said: "Ideally, I'd like a house on the green, near the theatre. It's just such an awesome place to hang out."
Richmond is already home to a number of celebrities, including Rolling Stones singer Sir Mick Jagger, actor Richard E. Grant, Mick's ex-wife Jerry Hall and Who rocker Pete Townshend.
Courtney, the widow of Nirvana frontman Kurt Cobain, has been house-hunting in the UK capital for sometime.
She recently viewed Kate Moss' £3.5 million north London mansion, but refused to make an offer because she was "disgusted" by the state of it.
A source close to the singer recently said: "Courtney noticed the house was in a state - with scratched floors and old-looking plug sockets. She said it was a mess and she would need to clean it up.
"She told Kate the house wasn't worth £3.5 million because it would need to be redecorated."
Meanwhile, Courtney has been placed on evacuation alert from her house in Malibu, California, after wild brush fires swept through the state over the weekend.
Stars including Britney Spears and Sting are on evacuation alert, while Minnie Driver and Matthew McConaughey have already fled.
Red Hot Chili Peppers bassist Flea's house has already been "burnt to a crisp" as a result of the fire.
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Courtney Love
