The UK capital remains the top destination in the nation and one of the top locations worldwide when it comes to property investments, despite the uncertainties and ups and downs of the last year with COVID19 and Brexit generating significant swings in the London real estate market. Even after lockdown, there will still be a high demand for homes in London since it is the greatest financial center in the world and is projected to continue luring many individuals to work and invest there. "Joe" Ricotta, a real estate developer shares the good news that there are no limits on international investors buying property in London. This is something that many overseas investors who are interested in the city may question.
Things to Consider as Foreigner while Buying Property in London
If you're thinking about investing in London real estate from abroad, you might be curious about how the procedure would compare to buying a home back home. Although the principles of investing in any type of property in the UK are often relatively like those in other nations, it is still wise to complete your study to be ready for any potential variances shared by Joe Ricotta, such as:
1: Examine Your Budget
Property costs might vary a lot depending on the London location that you select, so examine your budget and choose what is the greatest region for you to invest in.
2: Choose the Type of Property You Want
Select the kind of property you want to buy. Think about how you want to utilize the property in the long run suggested by Joe Ricotta, such as if it will serve as your primary home, a rental, a place for travelers staying for a limited time, or a place you intend to improve and resell in the future.
3: Figure out Financing Option
Ideally, you should talk about your options for financing your real estate investment as soon as possible with a UK-based mortgage broker or independent financial advisor. It is best to do this early in the process so that you can be sure you can get a mortgage from a British lender before you find a property you want to invest in. As per Joe Ricotta, your maximum loan to value (LTV) should be no more than 75%. The lower the LTV, the better your monthly interest rate.
4: Find a property
At this point, you can start looking for a suitable London property for sale. If you are doing this from your native country, there are several websites that you may utilize such as Zoopla and Rightmove. To get assistance with your home search, you may also get in touch with a London estate agent.
5: Restrictions and Property Terms
It is important to keep in mind that some properties in London are listed structures. In the capital, if you purchase a grade one or two listed building, you will be limited in the renovations you can make and will not be allowed to alter the building's original structure.
6: Making an Offer
It's normal for your initial offer to be declined unless you match the first asking price. You can boost your probability of having your offer accepted by investing during a buyer’s market, such as right now owing to the uncertainties in the UK.
7: Final Completion
If you need a mortgage, you must have a value survey done on the property elucidate "Joe Ricotta" to all the potential foreigner property buyers. You’ll also need to employ a solicitor or conveyancer to execute the relevant legal documentation and transfer the deeds for the property into your name, at which time you will exchange legally binding contracts with the seller.