Despite uncertainty caused by Brexit, the UK still has many luring property investment opportunities, especially for foreign investors. Whilst at the first glance the process of purchasing a property in the UK seems complicated, when left in the hands of industry professionals, it can be seamless and straightforward. Let us guide you through the procedure and steps to be taken when buying a property from abroad.
1. Reliable solicitor
According to the Law of Property Act, even when purchasing from a seller based in your country of residence, you must involve UK based solicitor. Before anything else, make sure that you have selected industry leaders to whom you can fully trust.
2. Putting your offer forward
Once you feel confident that you have selected the right property to invest in, put your offer forward to the seller. You will want to state your offer in writing. This is the best moment to express any additional requirements you might have. Hence, at this point, neither you nor the seller has any legal obligations. Your solicitor than will initiate the conveyancing process that transfers home ownership from the seller to you.
3. Offer accepted
When the seller has accepted your offer, Moving City will prepare a memorandum of sale and inform all parties to confirm the agreed price.
4. Exchange of contracts
The exchange of contracts will take place when all the inquiries are confirmed and agreed amongst your and seller’s solicitor.
The next step is then to pay the deposit to your selected solicitor, who then will transfer these funds to the seller’s solicitor. Note, the deposit usually equals 10-25% of the purchase price.
The purchase process is completed when the whole amount is transferred from your solicitor to the seller's solicitor's account. From there the money is distributed to the agent (agent fees) and to the seller. The keys are released once the money reaches seller’s account.
Keep in mind:
1. Reservation fee
You will be required to pay the reservation fee, which is directly proportional to the property price and can be as much as £5,000 or £15,000, but we have seen it exceeding these amounts.
2. International transfers
It is important to keep in mind the exchange rate if you are planning to make an international transfer. Moving City can highly recommend IFX Brokers that are one of the world's leading foreign exchange consultants.
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