London is quite known for its exquisite establishments made with intellects and masters of arts. For some, London is an ideal place to live and own properties. Since the late 20th century, the people of London were granted to own properties through the Right-to-buy scheme, which originated back in the 1980s.
Are the Expats allowed to buy properties in London?
In legal terms, there are no restrictions if a non-native individual wants to own a property in London. Also, foreigners can apply for a mortgage in the country, and there is a guide in accomplishing the act. But, in general, the taxes related to property ownership is the same for the resident and non-resident of the UK. If the case is you are moving to London for marital reasons, make sure to get a fiance visa, and it will give you six months allowance to get married before expiration.
Secure a Budget and Check the Costs of Investment
Like a wise decision in everything, make sure to save a budget before investing in real estate in London. While listing down the budget, consider the costs for the deposit, stamp duty, land registry fees, legal fees, and even removal costs. Check also of what mortgage size you are qualified to get.
To be eligible for a mortgage, you should be at least two years of living in the UK, has a stable job, and a UK bank account. There are different types of mortgage to apply for, and the choices are:
- Fix-rate mortgages
- Discount mortgages
- Variable-rate mortgages
- Tracker mortgages
- Off-set mortgages
- Capped-rate mortgages
Find a Suitable Property
Although there are a lot of lovely structures in London, you should weigh what type of living you have and the area you will choose. For example, the high probability of hauling back your investments is to situate in the emerging cities outside the capital. To have a smart choice then, learn the employment rates, affluence, range of investment opportunities, demographics, types of transportation within the area of your preference.
Also, it’s important that you know your claims when looking for the best houses. When the property you are looking for has physical issues to sort out, housing disrepair claims are usually claimed. Talk to your real estate agent about this so you can get more details on how to protect your purchases.
Consult with Real-estate agents of UK
To pave the way for property searching, go to the estate agents because they are the ones who know better your needs and process. Estate agents can provide intrinsic details to properties you are planning to get, and they can also offer you lists of recommendations. They can also mend price negotiations between the property seller and the buyer.
Specifically, agents will help you through the process of investing in real estate, but in terms of salary, it is none of your costs. There are local and national agencies in the UK that you can go to anytime and anywhere.
Speak to a Lawyer
Whether a hired lawyer or your Spouse Lawyer in London, it is vital to speak to Total Law immigration lawyers. It is to discuss legalities regarding purchasing property outside your home country. Although there are no restrictions for an expat to own property in London, there are still terminologies, and in reality, it can be a little crucial. With that, make sure to go to a specialist and learn the off-plan, stamp duty, things about leasehold and freehold, income tax requirements, conveyancing, and capital gains tax.
Complete the Investment with Contracts
To successfully own a property, make sure to fulfil the contracts, and it also means you have to deposit about 25%. Well, that is the most common deposit payment, but it can still vary depending on the contract. Accomplishing this stage means you have already owned the property and have access, so consider the next steps.
Pay the Taxes
If you have already bought or agreed to property ownership, do not forget to pay the taxes of land ownership. As said earlier, residents and non-residents have no difference in land taxation and will be issued against your income. At the same time, any gains concerning the property will be issued to capital gains tax. To help you sort out things, consult a tax specialist to process tax declarations and for your benefits in the double tax treaty, wherein you will pay tax in one while declaring taxes in your country and to the UK.
