As a foreigner who might have a dream to invest in the property and own a secondary holiday home in the United Kingdom, please it is important to note that unlike is some countries like United Arab Emirates with golden visa for foreign investors, buying a house in the UK does not automatically grant residency or immigration rights.
The quick answer is a big YES, anyone, regardless of nationality, can purchase property in the UK, but residency [i.e staying in the United Kingdom] is subject to specific visa and immigration rules set by the UK Home Office.
Property ownership and residency status are governed by entirely separate legal frameworks.
You can visit the UK for the purposes of buying property under a standard visitor visa for a period of up to 6 months.
NOTE: You cannot engage in any paid employment during your stay. this visa will give you ample time to search for a suitable property in the UK and make any other necessary arrangements to go ahead and purchase that property.
DOCUMENTS REQUIRED TO INVEST IN A PROPERTY IN THE UNITED KINGDOM?
The UK openly welcomes overseas nationals to invest in UK property. You are still subject to various checks that must be made before purchasing a property,
including
- Identity checks and
- checks around the source of funds
Steps involved in buying a property in the UK as a foreign national:
The funding Process – As an overseas national, it is possible to secure a mortgage in the UK
- The affordability check
- the loan-to-value [LTV], so how much borrowing you can have based on your deposit
- your credit history and whether you have a UK bank account.
The conveyancing process
Having secured funding to buy that property, where necessary, you will need to instruct a conveyancing solicitor. namely, transferring the legal title of a property from one person to another.
Can you rent out UK property as a foreign landlord?
After completion of the purchase, you will be able to rent this out, although if you have a mortgage secured on that property, this would need to be a buy-to-let mortgage, where this type of mortgage may involve higher interest rates than a standard mortgage.
UK Tax Compliance requirement as a foreign landlord?
As a foreign landlord, you must also carefully consider the potential tax implications if you will be receiving rental income from the UK in addition to the costs associated with buying a UK property, including your conveyancing and survey costs, together with any Stamp Duty Land Tax [SDLT].
As a foreign landlord, are you eligible for any special schemes?
Yes, the Non-Resident Landlord Scheme (NRLS) is a special scheme for the UK rental income of landlords whose usual place of abode is overseas, where letting agents of a non-resident landlord must directly deduct tax from this income and pay the tax over to His Majesty’s Revenue and Customs (HMRC).
If you are managing this U.K. property via friends or family in the U.K. and if you do not have a letting agent acting for you, the tenant themselves must withhold tax personally under the NRLS if the rent they pay to you is more than £100 a week. However, you can apply for approval from HMRC to have any rent paid to you with no tax deducted, instead opting to declare this by way of self-assessment and hire an accountant to take care of these compliance requirements.
Need assistance?
Our team can assist with the advisory and compliance requirement for a consulting fee, If you need help contact us