My blog

  • Home
  • About
  • Beach Life
  • Blog
  • Lifestyle
  • Personal Growth
  • Surfing
  • Travel
  • Contact Us

Property Investments in the UK: A Guide for Non-UK Residents

February 25, 2021

Investing in property has always been seen as a secure and profitable venture, especially if you purchase property in attractive locations. The UK has long been experiencing an upward trend in property prices, so if you buy property now, you’ll likely expect to get a good profit in due time.

There are two main types of property investment: buy to sell, where you wait until the price has grown enough before you sell it; and buy to let, where you can gain income through rentals. The latter is more popular among UK investors since you can get money from rent collection and through the property appreciating over time.

However, if you’re an ex-pat, things are a bit more complex.

It’s easier if you pay in cash

Most brokers would be hesitant to provide a mortgage to someone living outside the UK, so you’re more likely to have a smoother and faster experience if you have the funds to pay in full. There are specialist lenders who specifically cater to ex-pats, so it’s still possible to apply for a mortgage. Note that any property will likely need an upfront payment of 10 to 25% of the property’s total value, so at least have this ready.

Costs may inflate due to exchange rate and international fees

When planning your budget, you also have to consider legal fees, stamp fees, agency fees, and of course, the exchange rate and the money transfer fees.

For example, if you have your eye on a property worth £200,000, a 20% deposit would be £40,000. Even something as small as a 2% exchange rate fluctuation will end up costing you £800. Add to that the possible transaction fees, which could be anything from 1 to 4%, which could again cost you £200 to £1,600. In total, for the deposit alone, you would have spent a maximum of £42,400.

You also need to consider how your income will be affected by the exchange rate and transfer fees. You may want to research the best money transfer options to minimize your expenses and losses. You can also choose to have a family member in the UK hold on to your income or deposit it into a UK bank account until the exchange rate is more favourable.

Set up insurance and hire a letting agent

As an ex-pat, you’ll have a harder time managing the property and tenants compared to landlords who are UK residents. If you’re lucky, you might have a family member or friend willing to help you, but if not, your best bet is to insure your property and hire a letting agent to protect it from any negligent or destructive tenants.

Properties are one of the best investments you could possibly make, and you can maximize your returns if you take the proper precautions and make smart decisions. According to TailorMade Pensions, they’re also a great way to diversify your pension plan, since you can sell off the property in your retirement and use it to top up your pension payments.

0 Shares

· Lifestyle

About Us

Surfing is life, and life is surfing. Marvericks Invitational is the world's biggest surf competition. And although we don't actually run this competition - we use the name to talk about all things beach-lifestyle. I'm James and the other writers on the site are Jarred and Melissa. We work as a rad team! :) Read More…

Get the Latest Surf and Travel Info

Contact Us

Recent Post

Can Poker Make You a Better Investor?

November 16, 2021 By Surfer Dude

People often equate casino gaming with investing. Generally speaking, this is neither appropriate nor logical; chance-based gaming is neither a form of investing nor an activity that resembles it all . . .

Read the Post

Lighting Ideas for Marriage Lawns

October 1, 2019 By Surfer Dude

One of the many things that you are going to need to consider when it comes to the marriage lawns in Gurgaon are the decorations that you would be using. There are many options that you can use, such . . .

Read the Post

Interior Design Trends of 2020

June 17, 2020 By Surfer Dude

When it comes to interior design, some trends sustain the test of time and become timeless, whereas others can be a flighty passing phase that is dropped as quickly as it was picked up. Here are some . . .

Read the Post

5 Stylish surfer hairstyles that are well worth trying out!

December 7, 2017 By Surfer Dude

If you are long overdue for a change of hairstyle and would love to experiment with a brand new hairstyle which suits your active surfer lifestyle, simply continue reading to discover 5 stylish surfer . . .

Read the Post

BBL LADDER

December 29, 2019 By Surfer Dude

Welcome to the BBL Ladder where you will get the standings of the Big Bash League 2019-2020. Every team is arranged in Ladder according to its performance in the BBL season 9. The top-performing side . . .

Read the Post

Your Pet Is Puking: What Should You Do?

December 18, 2020 By Surfer Dude

Dogs like every other living creature are prone to various health issues, some of which can be very unpleasant from a human's point of view. Unfortunately, the process of vomiting is one of the . . .

Read the Post

The Ultimate Beach Packing List for Your Vacation

June 17, 2022 By Surfer Dude

6 Essential Things to Pack When Going for a Vacation on the Beach Are you planning a trip to the beach with your family? Well, you should start packing your bags immediately. There are many wonderful . . .

Read the Post

5 Stops for a Quick Food Trip Through Binondo

August 5, 2019 By Surfer Dude

Founded in the late 16th century, Binondo in Manila is considered one of the world’s oldest Chinatowns. This gives the area its own unique character and rich history that you can experience through . . .

Read the Post

Facebook

Surfing Lifestyle

About Us

Surfing is life, and life is surfing. Marvericks Invitational is the world's biggest surf competition. And although we don't actually run this competition - we use the name to talk about all things beach-lifestyle. I'm James and the other writers on the site are Jarred and Melissa. We work as a rad team! :) Read More…

Latest Post

  • Beach destinations in the Caribbean
  • A Celebrity Vacation: The Ultimate Travel Guide To Montecito
  • 3 Tips For Safe Parking While On Vacation
  • Can I Get Divorced if My Spouse Does Not Want It
  • 4 Quick and Easy Fish Recipes for Your Next Family Gathering

Let’s Connect

  • Email
  • Facebook
  • Instagram
  • RSS
  • Twitter

Copyright © 2023 · Simply Pro by Bloom Blog Shop.