Buying Property in UK from Overseas

Osbornes Law is a specialist London law firm with a residential conveyancing team recognised by The Times Best Law Firms. We act for overseas buyers purchasing property in England and Wales, advising on the legal process, costs and tax implications.

There are no legal restrictions on foreign nationals buying residential property in the UK. Whether you are based in Europe, the US, the Middle East or further afield, you can purchase freehold or leasehold property in England and Wales in your own name.

You do not need to be a UK resident. You do not need a visa. Property ownership and immigration status are entirely separate. Buying a property in the UK does not give you the right to live here.

What you will need is a UK-based conveyancing solicitor to handle the legal transfer on your behalf and carry out the identity and anti-money-laundering checks that are required by law on all UK property purchases.

Stamp Duty Land Tax for overseas buyers

Stamp Duty Land Tax (SDLT) applies to all residential property purchases in England. As an overseas buyer, you will pay a 2% surcharge on top of the standard SDLT rates.

The surcharge applies if you have not been present in the UK for at least 183 days in the 12 months before completing your purchase. It applies whether you plan to live in the property or use it as an investment.

If you are buying jointly and one of you is UK-resident, neither buyer pays the surcharge.

There is also a refund route. If you spend 183 days or more in the UK in any continuous 365-day period within two years of completion, you can reclaim the 2% surcharge from HMRC. Our solicitors will calculate your full SDLT position before exchange of contracts, so there are no surprises on completion day.

Getting a UK mortgage as a non-resident

UK mortgages are available to overseas buyers, but lenders apply stricter criteria than they do for UK residents. You will typically need a larger deposit of between 25% and 40%, and may need to demonstrate income from UK sources or a strong international credit history.

Some high street banks will not lend to non-residents at all. Private banks and specialist international mortgage brokers are often the better route, particularly if your income or assets are held outside the UK.

We act for buyers purchasing with a mortgage and those buying outright. If you need a recommendation for a specialist mortgage broker with experience in overseas purchases, speak to our team.

The conveyancing process for overseas buyers

Conveyancing is the legal transfer of property ownership from seller to buyer. The steps are the same as a standard UK purchase, with some additional requirements for overseas buyers.

Here is what the process involves:

1. Instruct a solicitor. Appoint your conveyancing lawyer as soon as your offer is accepted. Early instruction avoids delays.
2. Anti-money-laundering checks. We must verify your identity and the source of your funds. For overseas buyers, this typically means certified copies of your passport and evidence of where the purchase funds are coming from.
3. Searches and enquiries. We carry out local authority searches, environmental searches, and title searches, and raise enquiries with the seller’s solicitors.
4. Exchange of contracts. Once searches and enquiries are complete, you exchange contracts and pay a deposit (usually 10%). The sale becomes legally binding at this point.
5. Completion. The balance is transferred, ownership passes to you, and we register the title in your name at HM Land Registry.

Completing your purchase from abroad

You do not need to travel to the UK to buy property here. Many of our clients complete their purchase entirely remotely.

To do this, you will need to provide certified identification documents. In some cases, you may need to sign documents before a notary in your home country and have them apostilled for use in the UK. We will tell you clearly, at the start of the process, exactly what you need to provide and how to provide it from abroad.

Capital gains tax and ongoing ownership costs

If you sell your UK property at a profit, you will pay Capital Gains Tax (CGT) on the gain. Since 2015, non-UK residents have been subject to CGT on UK residential property. You must report and pay any CGT due within 60 days of completing the sale.

CGT rates on residential property are currently 18% for basic-rate taxpayers and 24% for higher-rate taxpayers.

You should also factor in ongoing costs: service charges and ground rent if you are buying leasehold, council tax if the property is occupied, and income tax on any rental income if you let the property out. Our private client team can advise on ownership structures and tax planning if you are purchasing as an investment.

Why choose Osbornes?

Osbornes Law is a specialist London law firm. Our residential property team holds the Conveyancing Quality Scheme (CQS) accreditation and is recognised by The Times Best Law Firms.

We understand the additional steps that come with overseas purchases. From source-of-funds checks to remote completion and post-purchase tax planning, we will tell you clearly at the start what is required, what it will cost, and how long it will take.

Our conveyancing fees are transparent and fixed where possible. We do not charge hidden extras.

Speak to a solicitor today

To discuss a property purchase or to get a quote, call us on 020 7485 8811 or fill in the contact form below and a member of our property team will be in touch.