If you’ve ever wondered what the possibilities of investment in UK property are when you move abroad, then this guide is certainly worth a read.

Can you still invest in UK property after moving overseas? Of course, you can absolutely invest in UK property as both UK citizens and foreign nationals can legally buy property for investment.

However, it’s good to know what stricter requirements you’ll face and how this might impact your investment.

If you’re looking to buy property in the UK after moving abroad, then here are some considerations worth making.

Key considerations for overseas investors

What are some of the key considerations to make when it comes to buying UK property as an overseas investor?

Legal and visa

There are no restrictions on buying property in the UK from overseas, but owning property doesn’t grant you residency. There are separate visa rules that apply for visiting or living in the UK, which are worth noting.

Financing

You should expect higher deposits when buying UK property from overseas. Around 25% for a buy-to-let, plus higher interest rates will be incurred, too.

There may also be stricter lending criteria, and as such, specialist brokers may be required.

Taxes

A 2% Stamp Duty surcharge for non-residents applies. There’s also a Capital Gains Tax that is applied on profits when selling the property, so again, something else to be aware of.

Financials

You’ll need to provide proof of identity, your address, and your financial stability too. UK bank accounts are handy to have, as well as a strong credit score and history.

However, providing income from overseas can be challenging, so it’s good to get an accountant to help with arranging all your finances where needed.

Management

You’ll need to be able to trust local agents for property management, as well as legal support, too. They will be able to handle everything remotely, but that trust can be hard to place when you’re not able to be physically there in the country.

Steps to take when investing in UK property after moving abroad

When investing in UK property from abroad, there are a number of steps that will need to be taken. These include the following.

1. Pre-planning and finance

First and foremost, be sure to define your goals, deciding whether you want a rental income, capital growth, or both. Check your mortgage options available, especially if there are expat buy to let mortgage UK available in the UK with certain lenders. Build UK credit where possible and gather your documents to make the process smoother.

2. Assemble your UK team

Next, you’ll want to assemble your UK team. Make use of an expat mortgage broker and a specialist solicitor for international transactions for non-residents. Contact a tax advisor or accountant, and a property/letting agent is good for finding properties and managing tenants if you decide to let the property out.

3. Legal and tax considerations

There are some legal tax considerations to think about, too, when it comes to your non-resident status. Personal ownership means you’re subjected to UK Income Tax on rent, Capital Gains Tax on the sal,e and Inheritance Tax too.

There’s also the Stamp Duty Land Tax at a surcharge of 2% for non-UK residents.

4. The purchase process and post-purchase

Be sure to use agents or online portals for your property search. Allow extra time for legal checks and anti-money laundering compliance. The exchange of compilation of contracts will take some time, too. Property will also be registered with HM Land Registery and then you have the post-purchase of property management and ongoing tax compliance to consider too.

Even though it may be somewhat more complex, investing in UK property from abroad is still possible and shouldn’t be something that puts you off exploring.