UNITED KINGDOM

Buying property in Cambridge, Cotswold, Edinburgh, London, Isle of Wight

Buying a Home in the United Kingdom: A Comprehensive Guide
Buying a property in the U.K. involves a structured process, legal requirements, and several associated costs. Here’s a detailed guide on what to expect when purchasing a home.

More than half of UK households own their homes, with 52.8% of families either owning outright or with a mortgage. The Right-to-Buy scheme in the 1980s boosted ownership by allowing council tenants to purchase their homes at discounted rates. However, the average age of first-time buyers has risen, largely due to increasing house prices.

Its worth noting, whilst the United Kingdom incorporates Norther Ireland, our property services currently operate out of England, Scotland and Wales; we’re expected to expand across the Irish sea in the next two years.

Rent or Buy?
Buy: If you plan to stay long-term in the UK, buying could be a solid investment, particularly with low mortgage interest rates.
Rent: For short stays, renting may be more practical, as it avoids upfront costs like stamp duty and capital gains tax upon resale.
Can Expats Buy Property in the UK?
There are no legal restrictions on foreigners buying property. However, non-residents or those with less than two years in the UK may face stricter mortgage requirements and need to provide a larger deposit (typically 20-40%).

Costs of Buying a Home in the UK

Upfront Costs:

Stamp Duty: Payable on properties over £125,000, ranging from 2-12% (3-13% for second homes). We can calculate the estimated amount.

Deposit: 5-40% of the property price, depending on the mortgage and your residency status.

Mortgage Fees: Includes arrangement, booking, and valuation fees, adding up to a few thousand pounds.

Legal Fees: Solicitors typically charge upwards of £1,000 to handle the transaction.

Land Registry Fees: Paid to register your ownership of the property.

Removal Costs: Moving expenses usually range from £300-600.

Ongoing Costs: Mortgage Repayments - Monthly payments starting the month after purchase.
Maintenance and Repairs: Budget for upkeep, especially for older properties.
Insurance: Building and contents insurance are necessary for mortgage holders.
Council Tax and Utilities: Rates depend on property value and location.
Leaseholder Costs: Leasehold properties may require payment of ground rent and service charges.

Financing a Property in the UK
Non-residents can secure mortgages, although they may face stricter terms, including larger deposits. Options include fixed-rate and variable-rate mortgages. Non-UK residents can also explore securing loans abroad but must consider tax implications.

The Process of Buying a Home in the UK
Get Financially Prepared: Calculate your budget and determine how much you can afford, including potential mortgage rates.

Making an Offer: Offers are typically made through an estate agent. Once accepted, the seller’s solicitor prepares the contract.

Hiring a Solicitor: A UK solicitor is essential for handling legal paperwork, conducting local authority searches, and ensuring there are no outstanding issues with the property.

Surveying the Property: RICS Condition Report: Basic survey for new builds (£250).
RICS Homebuyer Report: More detailed survey with a valuation (£400+).
Building/Structural Survey: Recommended for older homes (£600+).
Finalising the Offer and Mortgage: If the survey reveals issues, you can renegotiate the price. Finalise the mortgage and pay the deposit.
Exchanging Contracts: Once contracts are signed, you are legally committed to the purchase. The contract includes all key terms, such as price and completion date.
Completing the Sale: On completion day, funds are transferred, and you receive the keys. Your solicitor registers the sale with the Land Registry and pays the stamp duty.
Post-Purchase Considerations

Insurance: Required for both buildings and contents, particularly if you have a mortgage.

Utilities: Set up gas, electricity, water, and telecommunications. Comparison sites help find the best deals.

By following these steps and preparing for the associated costs, you can navigate the UK property market smoothly, whether you’re an expat or a UK resident.

We can search, source, and provide the very best property options available for you before negotiating, securing and moving you in.
To find out more, contact us for further details.