Buying a new build property in UK

Tips for Buying a new build property in UK

Here’s a step by step guide why buying a new build in UK is good investment instead of buying an old property.

Peace of mind

New-build homes come with a 10-year warranty covering structural defects. New homes are built to the latest specifications, initially at least, it’s less likely to require the same level of maintenance that you would encounter with an older property.

Great facilities

New-build properties generally come with a range of fantastic facilities. These include cinema rooms, swimming pools, gyms, onsite parking, concierge, meeting rooms and much more.

Cheaper to run

New-build homes are more energy efficient than old buildings so you don’t have to waste so much money on heating bills, generally new-build homes are usually well- insulated.

Safety first

New buildings are equipped with CCTV, and generally have security on-site or concierge.

The add-ons

Many of the fixtures and fittings you’d otherwise have to fork out for are included in the price. This means you’re getting a fully integrated kitchen with brand new appliances that comes with a warranty, eliminating the need to worry about maintenance and management for tenants. Also, old buildings do not have air conditioning, new-build homes will have state-of-the art heating and cooling systems and possibly even smart technology.

Build your dream

There’s the convenience of buying a brand new property. When you buy a new-build, you’re basically buying a blank canvas, meaning you won’t have to undertake costly renovation or redecorating work before or when you move in. You could even have a say in the design of your property, depending on stage of development.

Smooth process

There’s no upward chain to contend with when you buy a new-build home, so you won’t be waiting upon a previous owner or tenant to vacate before you move in. And what’s better is, you’re the first resident of your home.

Payment plan

If you purchase your off-plan property in london, your payments will be spread out over the course of construction. This will take pressure off your cashflow.

UK Property Mortgages Guide

If you’re tempted by property for sale in the UK, find out our guide to UK property mortgages for expats and non-residents.

Before even beginning to look at properties for sale in UK, first check out our guide to UK property mortgages to make a calculation of how much you can realistically borrow from the bank and what property prices you can afford. There are no restrictions on foreigners applying for a UK mortgage, but UK mortgage conditions can change depending on whether you are a resident or non-resident in the UK.

Here are some things to keep in mind when it comes to getting a mortgage:

  • Expect the interest rate to be around 2-4%. This rate will vary case-by-case based on the lender criteria, your needs and circumstance.
  • The loan-to-value (LTV) ratio can vary between 65-75 %.
  • When it comes to the payment method you can choose between Interest Only or Interest and Capital. The term for an Interest Only mortgage is from 5 to 15 years the term for Interest and Capital is approximately 25 years. Both are dependent on the age of the borrower.
  • The interest rate can be booked for a fixed-term from 2 to 5 years, this will give a piece of mind that you don’t need to remortgage for 5 years and you will know how much you pay each month. The variable interest rate depends on the client and their needs is less than the fixed rate.
  • Lending age depends on the bank, with some who lend up to age 80.
  • A guarantor can be used to increase the borrowing, and to avoid hefty stamp duty.
  • Most of the lenders will look to the rental income for investment, if this is not enough, they will check the client’s income for top-slicing.
  • For a live-in property they will look to your income.

Our mortgage partners include:

Springtide Capital Limited

Phone: +44 7891 044 346

Visit their website for further information on the services they provide.

UK Property Tax Guide

Guide to UK property taxation for expats and non-residents

When buying a residential property in the UK, it always best to seek tax advice and gather as much info as early as possible. The Four UK taxes to take in to consideration when buying a property are Stamp Duty Land Tax, Income Tax, Capital Gains Tax and Inheritance Tax. Additionally, keep in mind that your tax position will vary depending on other UK income you already have.

Property Taxes

1. Stamp Duty Land Tax(SDLT) (Transfer Fee)

The Stamp Duty Land Tax (SDLT) is payable on all property purchases, except for those that fall below the threshold, in which case specified tax reliefs apply.

To find out more you can go to the UK Residential Stamp Duty Calculator online and check by clicking here.

2. Income Tax

Income tax is chargeable on rental income from a property owned in the UK, however, each individual is allowed a threshold of ÂŁ11,850 which is tax free. Income tax is chargeable on rental income regardless of the residence or domicile position of the investor.

3. Capital Gains Tax

Capital Gains Tax (CGT) is charged on the profit made from the sale of a property in the UK. Expenses and building improvement costs can be deducted from the profit to reduce the taxed figure.

  • 18% and 28% for individuals (the tax rate you use depends on the total amount of your taxable income)
  • 28% for trustees
  • 20% for companies

4. Inheritance Tax

The threshold for inheritance tax is ÂŁ325,000 or ÂŁ650,000. In the case of married couples/civil partners) is generally 40% unless it is left to a spouse/civil partner or to a UK charity.

Guide To Buy Property in UK

Step by step guide to buy property in UK

So, you’ve got your sights set on owning a property in the UK? Regardless of whether it’s an investment property or a place to call home, whether your looking to rent it out or looking to move to the UK, our guide details the process of purchasing a property in the UK for you.

1. Determine the type of property you want and where

Firstly, it’s important to gauge the housing market. Where you buy is likely to vary based on your budget, if you are purchasing an investment property or whether you are looking to live in the place you buy.

2. Be prepared

It can take from anywhere from 1-3 months to buy and finalize your property purchase in the UK, sometimes even longer. Before you start looking, ensure you get an estimate on your finances so you know what you can afford and determine whether you will get a mortgage or use your own capital.

3. The legalities

So, you’ve found the perfect property for you, you’ve negotiated the right price, the right payment plan and you’re ready to sign. You now need to appoint a UK qualified solicitor/lawyer to manage the legal paperwork of buying a property in the UK. They will:

  1. Require a copy of your passport and proof of address (utility or phone bill addressed to you).
  2. Liaise with the seller’s solicitor/lawyer to obtain contracts and legal paperwork.
  3. Carry out local authority searches, drainage and environmental searches, to ensure there are no concerns regarding the property.
  4. Notify you of legal fees, land registry/stamp duty fees and administration costs. These fees will vary depending on the property.

4. Nearly there…

Once you have signed the contracts, all checks are done, all of your questions are answered and you are happy and comfortable to move ahead with the purchase, you will be required to transfer the deposit funds to your solicitor/lawyer. He or she will then exchange these with the seller’s solicitor/lawyer in return for the signed contracts.

5. Congratulations on your new property

a)  If your property is still off-plan you will now continue with the payment plan until date of completion. The developer will be in touch with construction updates throughout the build period. Once the property is on course for completion, the developer will send you a completion notice so you have time to get your funds ready for the final payment.

b) If your property is an existing property you will have time after the exchange to get your funds ready in order to transfer them to the solicitor and complete the transaction.

Your solicitor/lawyer is bound by UK law to ensure the entire transaction process takes place in compliance with all laws and regulations, at all times to protect your best interests. Once the signed contracts are exchanged and the funds are transferred your purchase becomes legally binding. Congratulations on your purchase!