7 essential things you must know before becoming an overseas property investor in the UK.

Right now, being an overseas property investor is a good way to maximise your profits by taking advantage of the low pound sterling value in the UK.  

Is it possible for overseas buyers to access the UK property market at this time? The answer to this popular question is yes. But, you have to ensure that you educate yourself on what this is going to involve before you begin. 

Here is a UK property guide for overseas buyers.

1 | How difficult is it to purchase UK property as an overseas property investor?

Everyone is welcome to purchase property in the UK and this is the case for being an overseas property investor that is looking to expand their portfolio. 

Something to realise is that you might have a different set of rules and terms to adhere to compared to UK resident buyers. This includes different rules when it comes to taxation. 

It is important that you understand all of the UK property terms too. 

Of course, this guide is going to be very useful to you.

2 | Beware of the difference between freehold and leasehold property

When you are looking at property in the UK, you are going to come across the terms freehold and leasehold. It is essential that you understand they are different when it comes to property. 

A freehold property When you purchase a freehold property, this means that you are going to enjoy outright ownership. This includes the land, as well as the dwelling or house. A freehold property is going to be what you come across the most in the UK. In particular, a lot of houses will be classed as freehold properties.


A leasehold property Unlike a freehold property, a leasehold means that you are only going to own this type of property for a specified duration. This time will be identified in a legal agreement and you will enter into a contract with the freeholder. The freeholder is the landlord of that property. A leasehold property is often going to be a flat or apartment in the UK. It can also include houses with a shared ownership scheme.

3 | Income tax in the UK will reduce your profits as an overseas property investor

You are going to have to pay income tax on anything you make through rental property in the UK. This can affect the profits you receive as an overseas buyer. In addition, there can be other costs that you face. This can include stamp duty. There is a tax-free personal allowance in the UK, but you will have to weigh up all of the income tax and other duties you have.

In particular, if you are a citizen of a European Economic Area or EEC country, you can enjoy having a tax-free personal allowance. In addition, if you have worked for the British Government during the tax year, you are going to enjoy this allowance. Too. For those that live in a country that has a double-taxation agreement, it is possible that you will be entitled to a tax-free personal allowance.

4 | Is bank lending and mortgages available for overseas property investors? 

When it comes to mortgages, overseas buyers can enjoy an agreement on resident properties priced under £150,000. If you are planning on purchasing commercial properties, there is unlikely to be any finance available. For example, care homes and student accommodation are not going to be properties that attract mortgages from residential lenders. You will have to think carefully about how you are going to finance properties you are in interested in in the UK.

5 | How to find the best areas in the UK to invest in? 

If you’re a first-time overseas property investor, you may be finding it hard to know where to start when it comes to choosing an area to invest in. In the UK, it is important to select an area of the country with sustainable demand. 

You are going to have to spend a lot of time doing your research and looking at the demographics of an area. In particular, you have to look at supply vs demand. It can help to seek advice on UK property investments.

6 | 3 step process for purchasing your perfect property in the UK 

If you are considering purchasing property in the UK, you are going to want a simple explanation when it comes to the buying process. Here is an outline of the steps you are going to have to take.

1. Know your budget

First of all, before you can start to research areas and look for properties, you need to work out what your budget is. In other words, know how much you can afford to spend, considering all of the taxation and duties you are going to have to pay. Do not forget about conveyancing fees too. If you are getting a mortgage, note that most of the time, you will have to have around 25 percent for a deposit.

2. Do your research

The next step is going to be studying areas and demographics in the UK. You want to ensure that you can find the right property for you to invest in. 

If you are not able to do this research yourself, there are property companies that can assist you with this step before you decide to buy somewhere.

3. Commence conveyancing

Once you have found a property that you like, you are going to have to make a suitable offer. This will need to be accepted by the seller. In order to do this, you are going to need to instruct a solicitor. This is when the conveyancing process begins.

The next step is going to be exchanging contracts. Note that purchasing property can be a longer process than you think. For instance, you are going to have to wait for a mortgage lender if this is the route you are going down. When you exchange contracts, you are bound to purchase the property.

7 | Completion of the purchase

The last step is completion. This is when you are going to transfer the funds and be given the keys to your property. 

Often, this is a step that is done by your solicitor. If you have to pay stamp duty, you are going to have about 30 days to do this.