Buying a home in the UK - Answering your 100,000 questions?
The UK has always been one of the top countries for overseas buyers, and more and more people from China are looking to buy a house in the UK, whether for pure investment or to study abroad.
For many people who are new to UK real estate, there is a sense of confusion and uncertainty. Today, I will share with you some common questions about buying a house in the UK.
1. Can non-UK residents buy a home in the UK?
Any non-UK resident aged 18 or above can buy a property in the UK without a UK visa. The UK has a comprehensive legal system to protect foreigners from investing in property in the UK.
Overseas buyers are entitled to the same tax rates as local investors until 30 April 2021 and there is no restriction on purchases. After this date, overseas buyers will have to pay an additional 2% stamp duty on their purchases
2. Do overseas buyers need to travel to the UK to buy a property if they are in China?
Overseas buyers do not necessarily need to travel to the UK, they can complete all the formalities at home. The market in London is very transparent and the price of buying a UK property in China is exactly the same as in London.
3. How many years is the property right in the UK? What are the types of property rights?
There are two main types of property ownership in the UK: Freehold and Leasehold. Freehold means that the buyer has permanent ownership of the house and the land within the house, mainly villas and some older homes. In general, apartments in the UK are leasehold, where the owner has the right to use the property for the duration of the leasehold. The leasehold period for new developments generally ranges from 125 to 999 years.
4. What documents do individual buyers need to prepare?
Proof of identity: passport
Proof of address: latest 3 months utility bills showing name and home address, or bank statements
Proof of deposit: approximately 3-12 months of bank statements with a balance to cover the down payment
Generally, a couple buying a house in joint names need to provide proof of identity, proof of address and marriage certificate for both partners.
5. What are the costs involved in buying a home in the UK?
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6. How is the area of a property in the UK calculated?
Unlike China where floor area is used to calculate the price, the UK uses the usable area of the house to calculate the price. The usable area * 1.3 = floor area, which can be calculated simply using this formula. Outdoor areas such as balconies are not included in the purchase area.
7. Can Chinese buyers buy a house in the UK with a loan?
Yes, buyers with income in China can also get a loan from a bank in the UK
Available banks: Bank of China London Branch, HSBC, Bank of East Asia, etc. The loan ratio can be up to 75% and the loan term can be up to 25 years (according to the current policy). The loan amount is usually about five times the pre-tax salary. The above figures are subject to change depending on the banks.
8. When should I apply for a loan?
Normally, you can go to the bank before you are ready to buy a house to see if you can get a loan. How much can I borrow? What is the interest rate. The bank will make a comprehensive assessment based on the buyer's income, debt, age and other specific circumstances to determine the amount and length of the loan to be granted.
You can apply for a loan about 6-9 months before the delivery of the house, and after the loan is approved, the bank will release the money according to the delivery date specified in the contract. About two months before the delivery of the house, the buyer needs to prepare the final payment of the house after subtracting the amount of the bank loan and the down payment and pay it to the developer's designated lawyer account through the lawyer on the delivery date. If you fail to apply for a loan, you need to prepare the balance of the house or transfer it in advance before the delivery date.
9. Will the house be as promised by the developer when it is delivered?
The purchase contract will be accompanied by various details such as the floor plan, information, decoration and configuration of the house to ensure that the buyer's rights are protected. Generally speaking, new-build homes in the UK have a 10-year guarantee from the National Building Council. In addition, buyers should take the reputation and qualification of the developer into consideration when purchasing overseas properties.
10. What services are included in the property fee?
Generally, property fees include property management staff, utilities, repairs and maintenance of office and common areas, landscaping, insurance of the building, and the right to use property amenities.
11. Can I immigrate after purchasing a property in the UK?
The UK is not a country of immigration for property purchase, so you cannot immigrate directly by investing in property. However, when you apply for a visa to the UK, you can submit relevant information about the purchase of a property, which will be helpful for your application.
12. Can I buy or rent a property and attend a nearby public/private elementary school, junior high school or high school?
Yes, you can attend a nearby public educational institution. You can apply for admission by simply providing a purchase or lease agreement or contract confirming your address of residence. Private schools look for eligibility, not residency.
13. Can I get a refund for the deposit I paid for a property in the UK?
No. In most cases, there are no refunds. However, the rules of each developer are different, so it is important to analyze each case.
14. Is there a property deed in the UK?
There is a property deed in the UK, but it is an electronic version. All property information in the UK is publicly available and can be downloaded from the UK Land Office for £3.
15. Registration of the title of the house
Generally after the contract is signed between the buyer and seller, the seller will hand over the title deeds to the buyer's solicitor. After paying the stamp duty, the land title is registered. The Land Registry then issues a certificate confirming that the buyer is now the owner of the property.
During this time, the bank transfers the loan applied for by the buyer to the buyer's lawyer, which then goes through the seller's lawyer and finally into the seller's account. The buyer's name is recorded on the National Property Register (UK Land Registry) register. It usually takes 2-3 months from the initial price negotiation to the final handover of the house.
16、Do I need to produce relevant documents to prove the source of my property to buy a house in the UK?
According to the UK 'Anti-Money Laundering Act', if you buy a house in the UK, the buyer must provide sufficient proof of the source of funds, both to prove where the funds for the purchase of the house came from, the source of funds can be explained as deposits, business income, family property distribution, parental gift, etc., but all need to be supplemented with relevant proof. You can communicate with your personal lawyer for more details.
17. Is it possible to resell the property during the delivery period?
The vast majority of London's period houses can be sold at the prevailing market price before the completion of the project, but of course the greater the appreciation in value, the more profitable the property will be, which is what we call speculation. Generally developers are only allowed to resell a property once before completion.
18. How do I buy a property in the UK?
Buyers in the UK can contact the developer directly. You can also find a reliable agent. If you are an individual buyer, an agent will make it relatively easier to buy a property, and the real estate market in London is very transparent.
The above questions and answers are for reference only
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Thamesestone Homes is the investment arm of a large UK student accommodation
Thamesestone is the investment arm of a large UK student accommodation and property management company.
The team consists of investment experts who have been working in the overseas real estate market for many years
dedicated to providing Chinese high net worth clients with secure, stable
We are committed to providing Chinese HNW clients with secure, stable and comprehensive overseas asset allocation services.
We specialize in UK school property investments and only recommend properties in areas that are easy to rent or sell.
After the transaction is completed, the property can be handed over to our professional team for charter management
We can provide you with a stable return on your investment.
Our team in China and the UK will provide you with diversified one-stop services
From purchase, escrow to sale, you will have no worries.
