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FAQ

Buying real estate in the UK

In this section we answer the most frequent questions we receive about investments in the United Kingdom. The simple processes this country offers the investor, makes it the number one destination for international investments in Europe.

Can I buy a property in the UK as a foreigner?

Yes. You can buy a property under your personal name, or also underthe name of a company, whether it is local (based in the United Kingdom) or abroad (based in any other country).

If I want to buy it under the name of a company. Can you assist me in creating it?

Yes. We will assist you in the formation and incorporation of a new company in different jurisdictions. Including the United States.

What is the process of buying a property?

Once the property is selected, the following acts are triggered:

  1. A reservation form is signed, and the reservation fee is wired, the fee varies by property, usually between £ 2,500 and £ 5,000. This is usually refundable for a period of time, normally 7 days.
  2. A copy of the reservation form is sent, along with a copy of the passport and proof of address to the solicitor representing you.
  3. The terms of engagement is signed for the Solictor to represent you, and also some forms about your identity.
  4. A video conference by Skype is agreed to ratify your identity with the original passport in hand and proof of address. Or, you can choose to mail a copy of the passport and proof of address certified by public notary.
  5. The purchase contract is signed, and the original is sent to the Solicitor by Fedex or another international mail service. The% of the money agreed is transferred to the Solicitor’s escrow account.
  6. Once the Solicitor receives the funds and documentation, normally, within 48 hours the contract is executed/exchanged.
  7. Congratulations, you have already purchased your property in the UK!

Do I pay taxes on my property or rent in the UK?

Yes. Foreigners are taxed in the UK. What is paid in the United Kingdom can be taken towards your taxes in the country of residence. In almost all cases, foreigners have personal allowance of £ 12,500 per year which is not taxed, the amount above that threshold will pay income tax at a rate of 20%, until the next bracket.

Where can I receive the rental payments?

You can receive the rental payments in any bank account. Usually paid quarterly.

Can I resell my property?

Once completed, the unit can be sold.

Who manages my property?

In all the projects we offer,property management is included. In many cases, an income guarantee is offered for a certain period.

What happens after the rental guarantee period?

The rental guarantee is based on real numbers of rental returns, that is, a net income is guaranteed based on the market rental prices, less all expenses associated with administration, service charge, property taxes, etc. Once this guarantee period has ended, you will continue to receive the property’s live income.

What costs do I have when buying a property?

The costs varies according to the type of property. In general, non-residential apartments have a low acquisition cost, which are the fees of the law firm and those of the property title. They are usually between £ 860 and £ 1,200.

In residential properties, to the previously described costs, you must add the stamp duty land tax. This tax varies according to the property price andit starts at 3%. Student accommodation and hotels up to £ 150,000 per unit are exempt.The amount above that threshold pays 2%, until the next bracket.

Can I buy a property with a mortgage?

Yes. Foreigners can residential property with a mortgage. Banks can lend up to 75% of the unit’s value.

Who assists us the purchase process?

We assist you inthe purchase process, completing the documentation, sending emails, and speaking with all parties. We will also assist you after the purchase is completed.

What is an NHBC guarantee?

NHBC is the UK’s leading new property insurance company that ensures that buildings are built to the highest standards. Many of our developments offer a 10 year construction warranty.