The process of buying and registration of real estate in the UK

Foreigners are free to purchase property in the UK and are eligible for a mortgage loan. The purchase process can be divided into 3 stages: selection of an object and preparation of an offer, transfer of ownership and registration of housing. The transaction process takes about 4-8 weeks.

 Search object

It is necessary to start the search by determining the goals (for investment or permanent residence) and property parameters. It is necessary to determine the type of housing, budget, availability of a storage room and a parking space, number of stores, proximity to urban infrastructure and public transport stops, etc.

To search for a suitable property, it is better to contact a professional real estate agent, whose task is solely to search at the request of the client and who acts only in the interests of the buyer. Check out the Hayat Estate catalog and contact our specialists. They will offer profitable options before a study trip or help you purchase remotely. In the UK housing market, there are also brokers working on the existing base in the interests of the seller.

After selecting an object, the agent draws up an offer to the seller, showing an acceptable price, the closing date of the transaction and the state of the financial position of the buyer. The offer does not obligate you to make a purchase. After agreeing on the cost, lawyers are connected to the case.

Connecting a lawyer

Having accepted the offer, the seller's lawyer submits a package of documents to the buyer's lawyer to check the legal purity of the transaction and eliminate potential problems. With these documents, the buyer's lawyer in local authorities and various organizations receives communication plans and electrical wiring diagrams for the building, learns about the object's compliance with planning requirements and standards, existing disputes, etc. The exact cost of such a check has not been established, it is discussed and depends on the specific object.

Approximate cost:

Real estate lawyers are called conveyancers and are overseen by the Law Society. Payment is made through the buyer's lawyer.

Thus, the transaction involves a real estate agent (whose services are paid by the seller), two lawyers - from the buyer and the seller, a civil engineer - to check the technical condition of the property and an appraiser - to determine the optimal price.

Contract of sale

If, after verification, the buyer agrees to the transaction, then the contract of sale is signed in 2 copies. At this stage, a 10% deposit is made and the exact date of the transaction is fixed, after which it is very difficult to refuse the transaction. If the party cancels the transaction, the other party may demand a refund of the 10% deposit and even go to court to recover all possible subsequent losses.

If housing is purchased on credit, the lawyer must make sure that all requirements are met and that the bank is ready to provide funds to complete the transaction. Foreigners can expect to receive 40% of the required amount at 3-5% per annum.

Completion of the deal

An act of acceptance and transfer of the property is carried out, the money minus the deposit under the contract is transferred to the account of the seller's lawyer. He transfers to the client the funds remaining after the payment of various payments (mortgage debts, legal expenses, and commissions to the seller's agents). At the time of completion of the transaction, the buyer transfers ownership.

Payment of stamp duty

The maximum rate of stamp duty (or UK real estate investment tax, Stamp Duty) for individuals is 12%, for companies purchasing residential properties worth over 500 thousand pounds sterling, it is 15%. Rates for non-residential objects - 0-4%.

0% rate - up to £125,000
2% rate - from 125,001 to 250,000 pounds
5% rate - from £250,001 to £925,000
10% rate - from £925,001 to £1.5m
12% rate - over £1.5m

State registration of the transaction

The registration of the purchase in the UK Government Office (HMRC) is carried out by the buyer's lawyer, for this he sends a certificate of payment of stamp duty to the land registry (Land Registry).

Registration in the land registry 220-700 pounds
Bank transfer £34.5
£50 Landlord Notice
Realtor services 2-3.5% + VAT (20%)