Obtaining a residence permit in the UK by buying a Property
In this article, we will take a look at the requirements for getting a residence permit in the UK through the purchase of a property which is one of the ways to immigrate to the UK, we will also talk about obtaining a residence permit the UK through investment and the requirements of financial means in the UK. In this article you will find out what are the benefits of getting a residence permit in the UK through buying a property and you will also find out how non-EU nationals can buy a property in the UK.
Britain is a booming country, but many still believe that buying a property in the UK has a difficult process, but prices are now rising sharply on a global scale.
In the Comments section, you can also ask your questions and answer them in a short time.
Topics reviewed in this article:
Getting a mortgage in the UK
Getting a mortgage to buy a house is a structured program which is carried out by banks in the UK, and individuals can repay the loan with its interest over a long period of time (usually 25 years).
Personal ownership in the UK
The most economical way to buy a property in the UK is to have the property purchased in the name of one or more people, although this depends on the individual’s circumstances.
In order to buy a property in the UK and get a residence permit in this country through this, it is necessary to pay the taxes, including: ATED (The Annual Tax on Enveloped Dwellings) and the higher rates for stamp duty land tax (SDLT), CGT (Capital Gains Tax) does not apply to the property if it is proved that the purchased property is the private owner’s principal place of residence (PPR).
One of the disadvantages of this method is liability to UK IHT (Inheritance Tax in the UK), which is about 40% after the death of the person, for example, if the property is purchased jointly after the death of one of the owners, the property ownership is transferred to the surviving owner. Alternatively, IHT can be minimized by securing a loan, or taxes can be covered by taking out term life insurance at relatively low cost. Lifetime transfers to the next generation are another popular way of mitigating IHT.
If a person is not a resident of the UK and wants to sell a residential property in the UK, he or she may have to pay CGT (Capital gain tax).
How to buy a property in the UK?
To buy a property in the UK, you have to look at it from a very precise perspective, because in practice, property prices in the UK starts at a price of around 750,000 pounds to 2 million pounds, and buying a property for less than 2 million pounds doesn’t leads to a UK residency and buying a house worth less than 2 million pounds is more suitable for people who already got a residence permit in the UK through education, work or investment, but if applicants buy a property with a value of 2 million pounds or more they can also get a residence permit for their spouse and children under the age of 18.
Buy a property in London
Generally, buying a property in the UK is more expensive than in other countries. As a result of high prices, the demand for buying a property in the UK has declined. Unlike other cities where house prices have fallen during the recent banking crisis, London is the first city in which the prices have risen by 4 to 6 percent over the past year.
There is a shortage of supply across UK property market, which greatly raises the price of real estate. Although the UK has survived the recession and it has become more difficult to get a mortgage, the current economic environment offers good opportunities to people who own (buy) a property outside of London. Unfortunately, this has led to more demand for real estate in the UK, which over the past few years has pushed up property prices on a global scale, starting in Russia and then recently in China and in Europe.
As the European region moves from one crisis to another, the number of wealthy European buyers in London has increased. The Greeks, Italians, Spanish and French people are among these people.
Foreigners are able to buy property in the UK, and most nationalities are eligible for investment loans, although fewer banks offer them mortgages. Those living abroad will need a proof of income and may be required to pay 40% of the price. The loan interest rate currently varies from about 3 to 5 percent and the type of mortgage will vary depending on the type of housing and the amount of the loan depends on the type of housing. People who are going to buy a property (home) using a mortgage need to pay attention to taxes.
The process of buying a property in the UK
The first thing the investors need to do is adjust their budget to buy the property and make the necessary arrangements if a mortgage is needed.
When a buyer decides to buy a property, the agent submits the offer to the lawyer (according to the real estate laws a buyer can do this if the seller allows; however, mortgage providers may represent each parties professionally).
The seller’s lawyer contacts the buyer’s lawyer and sends a copy of the title of the property being sold. Then the buyer’s lawyer raises questions about the title and other related issues. The lawyer also requests a list of fixtures and fittings to tell the buyer what is needed to purchase the property. All of the routine local searches will be handled by attorneys.
Once the work is done and a mortgage offer is received by the buyer, attorneys will determine a date for their clients to complete the process. Once this has been agreed and all parties are ready to continue, then the exchange of contact information with lawyers will take place. The parliament demands the payment of 10% of the purchase price when exchanging contracts and when contracts are exchanged there is a mandatory contract between the parties and neither of them can withdraw.
If the buyer withdraws after the exchange of the contract, he/she will lose the original deposit he/she used to buy the property, and the seller can also claim any further losses that may be incurred. If nothing happens to him, he will complain.
Therefore, it is very important that the buyer does not exchange the contract until he/she is satisfied with the purchase of the property and can continue the process.
The balance of the purchase price and other costs is completed by the lawyer. On the date of completion, the lawyer arranges the remaining amount for the property in order and then sends the title to the land registry and sends the registration evidence to the buyer. After that, the property belongs to the new owner and they can take the keys.
If you intend to get a residence permit in the UK by purchasing a property, we hope that the above information has somewhat familiarized you with the requirements of getting a residence permit in the UK by purchasing a property. If a person goes through the process of getting a residence permit in the UK and meets the requirements, he/she can easily receive this residence permit in the shortest possible time.
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