In many countries, getting a property as a foreigner is incredibly stressful with complex rules and restrictions. But this is not the case with the United Kingdom. There are no restrictions, and it has been regarded as one of the most reputable real estate market areas for overseas investors.
This doesn’t mean it is a piece of cake, as there are various taxes and dues to pay before owning a building. So if you live overseas, you will need experienced foreign investor help if you are interested in such an investment. The advice you will receive is necessary to help you make a good decision. With this in mind, we will discuss the steps you need to take to buy a property.
Steps Foreigners Should Take in Buying Property in the UK
Here are important steps to take when buying property as a foreign investor:
1. Define Your Budget
Consider the cost that comes with buying a building in the United Kingdom. Prices vary based on the location you wish to purchase from. Also, see how much of your budget can cover certain taxes and other fees such as:
- Stamp duty land tax
- Income tax
- Capital gains tax
- Solicitor fees
- Mortgage fees
- Survey fees
- Regular taxes
- Moving fees
Stamp duty is calculated based on the actual amount the property worth. It is the only tax you will pay during the purchase. Others will follow afterward. You may want to check out https://www.gov.uk/buy-sell-your-home/tax to read more about taxes in the United Kingdom.
2. Find a Property
Since you know the cost of the property and your budget, you can find the property you want to buy. This process is quite tricky since foreigners live overseas but with the help of the internet you can get a good investment.
You need to consider the purpose of the property. It could be a private place for your family, a place for rental, or one you would renovate for future sales. You also need to identify which area(s) in the United Kingdom have better investment opportunities.
Places like London have been described as a wonderful place for foreigners to own a house in the United Kingdom. You can do more research about other areas before making any serious decision.
3. Know Your Finance Options
The best way to buy property as a foreigner in the United Kingdom is by using cash. It makes the entire process easy and opens up various opportunities available to those who buy with cash. Other options include a mortgage, but it can be very difficult for overseas investors to get a mortgage.
There are just a few mortgage companies that are willing to offer such to non- citizens. However, if you do not have the stipulated amount needed in full, you can take advantage of this mortgage option. Be sure to have adequate expert advice before deciding on anything.
4. Making a Reservation
Once you have decided on an investment, you need to make an offer. Most times the first amount you offer to pay could be rejected, but do not relent. After it is accepted, quickly pay a deposit, and purchase a reservation document to fill. Upon completion, submit promptly because other investors may have also indicated interest.
5. Completing the Deal
The final step is to complete the purchasing deal. You can do this by hiring a solicitor to help in the legal aspect of the purchase. The solicitor will make necessary research about the property to know if there is any legal hassle ongoing.
They ensure that a survey is carried out to ascertain if the place is sound structure-wise. They also make sure you have complete legal document that will transfer ownership to you. As a foreigner, your solicitor will provide statement paperwork that shows all the details involving the purchase.
This will make the entire process go smoothly. You may want to click here to read more about what solicitors do.
Conclusion
Securing an investment in the United Kingdom is neither difficult nor easy. We discussed the steps foreigners can take when buying property. We hope that this foreigners’ guide will help you make a well-informed decision before investing.