Can I Buy UK Property From the UAE?Investing From Overseas
If you’re considering buying UK property from the UAE, it is important to do your research and seek professional advice. There are a number of companies that specialise in helping foreign nationals buy property in the UK. They can help you find the right property, obtain a mortgage, and manage your investment. We at RWinvest are experienced with helping UAE investors purchase properties in the UK.
Foreigners can buy property in the UK without restriction, but those who want to live in the property may need a visa unless they are UK citizens.
Learn More About Investing in UK Property From the UAE
International buyers may face more rigorous identity checks, so be prepared to travel to the UK in person to confirm your identity.
Buy-to-let mortgages are difficult to obtain from high-street lenders, but specialist lenders may be an option. Interest rates on BTL mortgages are high, so consider off-plan properties with lower price points and flexible payment plans.
Look for investment properties with affordable prices, high rental yields, and popular locations. Be prepared to haggle on price, as house prices are often negotiable.
Both the buyer and seller will need to use a solicitor when buying property in the UK from the UAE. Once an offer is made, the solicitors will exchange contracts and ensure everything is legally sound. This is when you are committed to buying the property.
The next step is to pay the deposit, usually around 25% of the property value. Once the deposit is paid, the solicitor will review the contract again and set a completion date for the remaining payment.
Once the purchase is complete, your solicitor will have a final look at the contract to ensure everything is above board, and – if you decide to go with off-plan – a completion date is set for when you will pay the remaining amount of the property’s value.
Once that is out of the way, you can start the process of finding tenants and collecting rental income.
Here are some additional things to keep in mind if you are a UAE resident looking to buy property in the UK:
- You may be able to get a mortgage from a UAE bank, but you will likely need to put down a larger deposit than a UK resident.
- You may need to pay a higher interest rate on your mortgage.
- You may need to provide additional documentation to the lender, such as proof of income and assets.
- You may need to use a lawyer to help you with the purchase process.
- It is important to note that the UK government has introduced a number of measures to cool the property market in recent years. These measures include increasing stamp duty on high-value properties and imposing restrictions on buy-to-let mortgages. As a result, it may be more difficult and expensive to buy property in the UK from the UAE today than it was a few years ago.
If you are considering buying property in the UK, speaking to a financial advisor to get specific advice on your circumstances is essential.