• Can Foreigners Buy Property In The UK?

    Investment Info

    foreign investmentsThousands 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.

  • Understanding the nature of real estate investment flows: CIS countries

    Investment Info

    real estate investment flowsOver the past 15-years old there is a trend of significant investments in real estate of Great Britain capital from CIS investors. Since the 90s investors from Russia and CIS took the 5th place among the total mass of real estate buyers in London. So why real estate prices in London attract such interest among CIS residents? What are the payback prospects and what projections are expected in real estate market in the coming years?

    The situation in the real estate market in London: the cost to date and the prospects for profits

    The fundamental motive that prompts CIS residents to pour their capital in housing is, first of all, the profitability of such investments. The fact that the London market of immovable property is not stagnating even during tough times, remaining stable even to the general decline in the value of housing across the country in the post-crisis years of 2010-2012. The property in the capital of the United Kingdom not only does not fall in its price, but increases. Thus, the maximum peak of prices for real estate was observed in 2007-2008, characterised by the highest dynamics of sales of real estate in London, housing prices, interest from buyers and increased rents. However, now in 2016 the figures exceeded the cost of housing in 2007-2008 by as much as 9% already. If we analyse the situation across the country, the cost of residential properties in the capital has gone 2 times higher. The total cost not always includes conveyance solicitors services, which may account for another 1 - 2%.

    Property in London, according to statistics compiled by Knight Frank will go further by 7% in 2016, if we take the average statistical and housing areas. More prestigious objects and luxury apartments in respectable areas of London will experience an annual increase of 12% or even higher. From this it follows that our CIS residents investing in particular residential facilities will be able to gain large sums from resales. The owners, not seeking to sell their houses and apartments, make profits from renting space for rent, but that is a rare case. So, in the Eastern and industrial areas, as well as the suburbs of London, the increase in price of property can range from 2 to 5% for 2015, in central London, these figures may be as high as 15% per year.

    In view of the prevailing trends CIS citizens are increasingly resorting to acquire property in the capital. Statistics compiled for 2014 by the same analysts from Knight Frank, is eloquent: real estate objects in London priced at under £2 million are largely acquired by CIS residents bought up, and they occupy a leading place among all those who have made a deal, surpassing the Asian and Arab investors. Russian investors took the 5th place among all the nationalities, who have concluded the contract on the purchase of property in London, outnumbering Chinese and the Arab buyers. 85% of the total number of transactions conducted in 2013 on the sale of apartments in the exclusive central London - City of London, were made by investors from Russia and CIS countries. Approximately 35% of the population of the Eastern districts of London, where budget accommodation is located, priced at £150,000, were primarily purchased by the member of CIS diaspora.

    Facts speak eloquently for themselves. In turn, the British government is actively promoting the opportunities in the acquisition of housing in the capital, creating different subsidiary programs, for example, ‘Buy a house’, as well as giving the opportunity to take a mortgage loan on a property in London, even for non-residents.

© Copyright 2018 - Biennial. All Rights Reserved.

Back to Top