Common questions we are asked:
Can I transfer funds direct from an overseas bank?
Yes, you can. Funds in a property purchase (deposit and completion money) are transferred via the buyer’s solicitor. We can receive money transfers from any bank account in the world in your name (subject to any sanctions restrictions). If you are buying a property in your personal name, we cannot receive funds from your company. The funds must come from an account in your personal name.
What paperwork do you need to see for overseas buyers?
To identify clients we send an electronic link to their phones to upload passports and an address document, and to take a ‘selfie’. Separately, we send a new client questionnaire by email. The questions include how the money has been earned for the purchase, relevant documents you have to support your wealth, and for you to provide a copy of your bank statement showing the funds available.
Do I need to be in the UK for any parts of the process?
We can deal with all aspects of your property purchase in the UK remotely. You do not need to be in the UK at any time. However, we recommend inspecting the Property before exchange of contracts and on the day of completion to check that it remains as you expect.
It is also helpful to collect the keys on the day of completion, to ensure the property is secure and then to deal with changing the names of the gas, electric, council tax and water accounts. We can connect you with companies who provide these services for you, and who look after the property while you are overseas. If you are buying a ‘new build’ property, you should arrange for a snagging inspection approximately two weeks before the completion date.
Do I need a survey?
We recommend that a survey is undertaken before exchange of contracts. Unless you are buying a new build property from a developer, your seller will not be providing any guarantee as to the condition of the Property. Even with new build properties, it is sensible to arrange a survey before exchange of contracts, or before completion to ensure the developer addressed any snagging items identified. We can recommend surveyors to assist you.
Are there any restrictions on owning UK property, for example, do I need a Visa?
There are no restrictions on owning UK property, except individuals must be over 18 years old. You do not need to have any particular passport or visa status. Our immigration and tax teams will be pleased to advise you if you or your family have any plans to stay in the UK beyond short holiday visits.
What taxes are relevant for overseas buyers?
Overseas buyers are principally concerned with three taxes:
- Inheritance Tax: payable on the value of a person’s property and assets when they die.
- Capital Gains Tax: payable on any increase in value of the property when it is sold (less transactional expenses)
- Income Tax: payable on income received from the property if it is being rented.
Separately, all occupiers of UK property must pay council tax, which is an annual charge for municipal services. If you are renting the property, your tenant will be responsible for paying it.
Contact us
Our tax, conveyancing and immigration departments will be pleased to assist with answers to your specific circumstances. Contact: enquiries@quastels.com.
