When it comes to investing in real estate in the UK or London, anyone can do it. As long as you are over 18, have the money, or have the ability to raise the money, you can buy UK property.
Plus, you do not have to be a citizen or a national of the country to do this. You just may need a visa if you plan on living in the home or visiting the property you invested in.
To learn more about this business venture, just continue to read our article. There are some details you need to be aware of so you do not run afoul of the law.
Most non-UK residents have the idea that the only and best place to buy property is in London. While London is certainly the largest single property market in the country, it is not the only one.
There are some great opportunities to invest throughout the UK and in smaller property markets. The prices will be lower and the buy-to-let option produces higher profit yields than a London buy-to-let option would have.
What you have to watch out for when buying outside of London are the regulations that govern real estate sales. You do need to read up on the legislation in those areas to make sure you know what is legal and illegal to do.
When you go through an experienced estate agency, the agents at the company can fill you in on all the legal details that must be met before a transaction can take place.
There are 3 reasons why non-Uk investors buy UK properties. You need to decide on one of those purposes before you enter the market or hire an estate agent to help you. These three reasons are:
Once you decide on your purpose for investing in UK property, it will be easier to find the right estate agent to work with. Also, it will be easier to locate some good properties in nice locations to buy.
When you are a non-UK resident buying UK property, you need to make sure the homes you are looking for will fit your budget. This means you need to set your budget and not go beyond that mark.
Also, knowing your budget will help you determine how much cash on hand you have to use and how much you may need to borrow. Plus, if you are using non-UK currency, you need to factor in the currency exchange rate.
Generally, this will push your costs much higher as everything will be transacted in British Pounds, not your local currency. Those costs will include estate agency fees, legal fees, and so on.
Unless your local currency is valued higher than British Pounds, you will need to add a lot more of your money to make up the difference. Once you factor in the exchange rate for all costs, you will know your budget. Those costs are per house and not a one-time expense.
This is going to be rough waters for non-UK investors. There are some strict regulations and in many cases, there are few mortgage lenders willing to lend foreign investors money for commercial buildings.
If they do, this process can be very difficult. Most foreign investors are steered towards the residential market where getting a mortgage is easier after the £150,000 price.
To get a mortgage, you would need to use a specialist bank, and that won’t be easy either. Many of these banks have lists of nations whose citizens are not welcome to borrow money.
The reason for this list is that their countries have a bad reputation for bad regulation efforts and for the economic sanctions that have been imposed on those countries.
There is a lot of documentation needed before the loan is approved.
There are a few of these you need to be aware of when you invest in UK property:
When you are a non-UK resident wanting to invest in UK property, talk to us first. Our estate agency has over 10 years of estate buying and selling experience including working with out-of-country residents.
Our agents know the ins and outs of non-UK resident investment procedures and can guide you through the process with an expert’s touch. Call us today and see what we can do for you. This is not an easy process and only the best know how to navigate it correctly for you. Sources
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