Planning on Moving to the UK? Your Complete Guide to Buying a Home from Overseas.
As a property finder for over 15 years and advised on over £30 million in property transactions, we thought it would be useful to break the sales process down.
The below is a practical step-by-step guide covering the full journey from preparation to getting the keys. We have broken this down into two blogs as we have completed a deep dive on each step, however for a bespoke service if planning to buy in the UK, feel free to get in touch.
Step 1
Check your immigration and residency position before looking at properties and confirm what visa/residency status you’ll have in the UK. You need to know whether your visa allows long-term residence.
How long lenders require you to have lived in the UK? Many UK mortgage lenders will lend to: British citizens abroad, returning expats, skilled Worker visa holders, indefinite leave to remain holders and some non-residents. Something to note, the fewer years you’ve lived in the UK, the smaller the pool of lenders may be.
Dependent on the visa options available to you and length of relocation, the costs and range of lenders will vary. For a generic breakdown the attached provides a good overview
Step 2
Understand the main upfront costs as in the UK buyers usually need cash for a deposit which is typically: 10- 15% minimum for UK residents, 15–40% often required for overseas buyers/non-residents.
For example: £500,000 home – 25% deposit = £125,000
Stamp duty land tax (England & Northern Ireland) is a property tax paid on completion. Overseas buyers usually pay standard stamp duty, plus a 2% non-resident surcharge, however in some instances this can be reclaimed after purchase. Scotland and Wales have different systems. You can use an official calculator: HMRC Stamp Duty calculator. 
Other Costs that needed to be considered which are outlined as an approximate range. Solicitor/conveyancer, £1,000–£3,000, survey, £400–£1,500, mortgage fees £0–£2,000, broker fees £0–£1,000+, moving costs and currency transfer fees.
Step 3
Decide whether you need a mortgage and if so, this is the stage to prepare. In the UK lenders will commonly ask for: a passport, visa, proof of income, tax returns, bank statements, credit history, employment contract and proof of overseas address.
If you do not yet have UK credit history, specialist lenders or international banks may be able to help. Some of the common lenders used by international buyers include: HSBC UK, Barclays UK, NatWest and Santander UK. Finding a mortgage broker experienced with expatriates/international buyers can be extremely valuable but its likely they can start the process until the visas received and you are physically in the UK.
Step 4
The next thing you need to do is get a Mortgage Agreement in Principle (AIP). An Agreement in Principle (also called Decision in Principle) is a preliminary lender indication of: How much you may borrow and whether you’re likely to qualify. Estate agents often expect this before taking your offer seriously and this is where the expertise of buying agents can utilise their relationships and local knowledge.
Step 5
Choose where to live. Its always a good idea to research schools, safety, transport, future resale value, leasehold vs freehold and local taxes (Council Tax). Our UK property portals such as Rightmove or Zoopla are a good resource for information but its important to remember the estate agents act for the vendor, not the buyer. If you are new to the area or unfamiliar with the buying process then those working for the buyers are often referred to as buying agents or relocation agents. If wanting to utilise these services, its advisable to do your due diligence on those acting for you either by way of a consultation call and/or online research.
Step 6
Once you have chosen an area it is time to view properties. If you are unsure, this is where a buying agent / relocation agent can be invaluable in providing area guidance to meet your needs and viewing on your behalf if you are not local to the area also.
When viewing or a professionals viewing on your behalf, it is important to consider numerous areas such as overall property condition, legal documentation associated with the house, energy performance and plenty more.
Step 7
After finding the right property for you, it is time to make an offer. Offers are usually made through the estate agent and the seller may accept, reject, or negotiate.
Once accepted the property is “Sold Subject to Contract” but it is NOT legally binding yet. This is important because either side can still walk away before contracts exchange.
I hope part 1 of the buying checklist helps, with part 2 to be released next week.
If you feel you may need assistance with buying in the UK then please book a no obligation consultation call with Dream Move Relocation. We can be contacted using any of the details below
Email: Contact@dreammoverelocation.com
WhatsApp: +44 7513 282 421
Web: www.dreammoverelocation.com
