London is one of the most expensive cities in the world, with property prices skyrocketing and only getting more expensive. But what about if you’re not British? Can a foreigner buy property in London? The answer to this question is yes. There are many different ways for a foreigner to purchase real estate in London, however some might be harder than others.
Buying property in London is a big decision. Some people might think it’s an investment for their future, while others will see it as the ultimate luxury purchase. Whatever your reason may be, you’ll need to find out if you’re eligible to buy before you can make any decisions. Overseas investors have different criteria than British citizens so they probably won’t qualify – but there are other ways of buying property abroad that might work for them.
Here are a few tips for foreigners thinking about buying property in London– whether it’s for a primary residence or an investment opportunity:
- Cost considerations.
The London property market is one of the most competitive in the world with a high number of potential buyers. If you’re considering buying, here’s what to keep in mind:
- Stamp Duty Tax – The UK is currently in the midst of a stamp duty holiday that will give you up to five years off your property taxes. Stamp duties are taxations on any properties purchased and can add up quickly depending on how many homes someone has owned before, but with this new scheme, home ownership across Britain could be more accessible than ever.
- Income Tax –
- Capital Gains Tax – If you invest in a London property, there is no way out of paying capital gains tax. However, it’s not as bad if you’ve only just started investing- the rate for
- Finding property.
In England there are typically three ways people choose to invest their money: through properties where someone else owns both the land and house (freehold), only the building but not ground beneath it(lease) or neither-they’re renting out spaces owned by others instead (tenancy).
Outside of the city, it’s most common to own your home outright but when purchasing within the bounds of London, it is more likely that you will be leasing land from someone else with an option for buying at some point down the line.
- Payment options.
As a foreigner in the UK, it is much easier to purchase property if you are paying cash. Loans and financing options can be complicated for foreigners – so make sure that you have access to funds before embarking on this process of buying any real estate.
Purchasing UK property as an international buyer comes with its own set of challenges since loans and other financial instruments may not be available or accessible depending on your citizenship status; but luckily there’s one thing about being foreign: they get paid in cash.
Non-citizens often find themselves in a difficult position when it comes to getting loans. They may have higher rates, pay more in deposits and be required to show up at the bank every time they want their money out of fear that immigrant documentation will not suffice for verification purposes.
Non-British citizens are subject to some strict conditions on what kind of lending options they can access from banks which usually end with them barely scraping by financially or being unable to buy property altogether due lack of credit history as well as having no way around high deposit requirements.
Sources:
https://www.greaterlondonproperties.co.uk/can-a-foreigner-buy-property-in-london/
https://www.expatica.com/uk/housing/buying/buying-a-house-in-the-uk-103191/
