A Buyers' Guide To England

Every international location has rules and regulations regarding the purchase of land or property by foreigners and it is important to be aware of what will be expected. Below is a general guide to the property buying procedure in England.

Buying property in England is a relatively straightforward process and there are no separate procedures for foreign nationals.

We will gladly guide you through each step of the process to ensure you are fully informed and that you avoid any potential pitfalls. Click here to speak to a specialist.

Using an Agent

Unlike in some countries, British estate agents are licensed bodies of fully trained specialists, and all estate agents must pass strict exams to become legitimate professionals. A real estate agent can act on behalf of the vendor, the buyer or indeed for both parties but their commissions are charged to the vendor.

A good agent is essential when you buy a property in England. Propertyshowrooms.com in association with the International Investment Property Network (IPIN) always carefully examine your particular requirements and provide you with a selection of appropriate options from our database. In addition, we can recommend all related professional services you will require to make a safe, reliable purchase. Most of our properties for sale in England are within off-plan developments as they offer the best value for money and represent current general demand.

Making an Offer

The English expect to barter before the selling price is agreed between the seller and buyer. It is common practice to offer a good deal lower and then leave it to the estate agent to negotiate with the vendor on your behalf.

Deposits

Deposits are not always necessary if a 100% mortgage is agreed on the property, which is often the case; however, lenders charge slightly higher interest rates for the privilege. A minimum deposit of 10% of the property value ensures you will not have to pay a Mortgage Indemnity Fee.

For off-plan purchases, typical reservation fees are around 1,000 GBP with 3.0 - 3.5% deposit payable within 28 days (minus the reservation fee), Another 3.0 - 3.5% installment will be due a year later and another the following year, with the final balance payable upon completion a year later.

Appointing a Solicitor

It is wise to appoint a conveyancing solicitor to ensure all legal paperwork is dealt with professionally. Once the price is agreed, the vendor's and buyer's solicitors liaise to finalise the deal. Our advisors can recommend a good lawyer who will carry out all necessary checks on the property or land in England and fulfill all the legal requirements of the sale.

Survey

It is customary to carry out a structural survey prior to purchase of property in England. The depth of survey you contract of course depends on the age and type of property you are purchasing. It's your responsibility as the buyer to be certain that the building is structurally sound as the seller has no legal obligation to declare or ensure that this is so. Sometimes you will need to alter your initially agreed price, which was made subject to a satisfactory survey.

Once the survey is complete, purchase can go ahead once you have received a written mortgage confirmation.

Mortgages

A wide range of mortgage products are available in England and it is usual to obtain an "Agreement in Principle" in writing to assess and agree your ability to pay the loan.

Today, due to rocketing prices, many investors, particularly young couples, are struggling to take their first step onto the property ladder. Many mortgage lenders are therefore offering special packages, such as the "Share to Buy" mortgage, allowing up to four parties (normally a group of friends or family) to enter into a joint mortgage with reduced costs and this method is becoming increasingly popular in the UK as a whole.

If you possess property in your own country and would like to borrow against this in an equity release plan, we can introduce you to an independent financial advisor who will help you raise the necessary finance. Alternatively you can request a quotation for a mortgage from our experts.

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