Thousands of non-UK residents purchase property in London, England and Scotland – the UK legislation does not put any restrictions on foreign ownership of real estate. Moreover, foreign buyers can count on a mortgage loan to purchase real estate with a very attractive interest rate and have a number of tax advantages to their names almost equally to the ones British and local tax residents have.
What’s the process?
Once you have found a premises that suits you, you are making an offer to purchase the property. If the proposal is accepted, the memorandum is drawn up, stating the names and addresses of the parties, the address and price of the object, as well as the coordinates of lawyers seller and the buyer. Yes, you will have to find a decent lawyer to sort it all out – drop in at solicitors.guru, a prominent platform aggregating experienced and trusted conveyancing solicitor to find a solicitor that meets your requirements. Statistically, the deals fail because of the sluggishness of the lawyers, so the choice of a lawyer is extremely important, taking into account that the demand for real estate especially in the capital is extremely high. Both lawyers draw up a contract of sale, with the buyer’s lawyer makes all sorts of requests to the local authorities for information about the plans of further construction, land registry checks, and others. At the same time a purchased object should be evaluated by independent engineer. The main objective of this evaluation is to investigate the technical condition of the object. When all the requests received and the contract is ready, it is the buyer’s lawyer sending the seller’s lawyer a signed contract and the deposit, which is usually accounts for 10% of the project cost. At the same time, the buyer sends the seller’s lawyer a contract signed by his client. The contract establishes the day of the termination of the transaction, ie the date of the official buyer is taking possession of real estate. On the day of the end of the transaction the buyer makes the final payment and gets the keys to a new home or apartment.
What is the difference types of property?
Freehold property includes not only the building itself, but also the land on which it is located; it mainly applies to houses and townhouses, rather than apartments. Leasehold implies giving an exclusive possession of the property on lease for a certain period of time (the maximum of 999 years), and is usually provided for a nominal annual ground rent – from 25 to 500 pounds per year. Share of freehold is a relatively new concept, which arose after the reform of 2002, and is something of a cross between freehold and leasehold. The ownership in this case means that the building is purchased by all the owners of apartments in it, who created the company, officially owning the building. Each apartment has a ‘share ownership’ and the proportional part of the shares in the company belongs to the owners of the building.