Buy secondary property in the UK

To conduct a sale and purchase transaction and ensure its legality, you must contact a lawyer specializing in real estate transactions (conveyancer). Services for the conduct of the process of purchasing real estate in the UK, as a rule, are paid in the amount of 0.4-0.6% of the value of the purchased property. It is worth remembering that in the UK there are two forms of property ownership: freehold and leasehold. Freehold means unconditional ownership of the building and the land under it, leasehold is the transfer of real estate to conditional ownership under a long-term land lease agreement. The lease term is from 1 year to 999 years, and the cost ranges from 50 to 500 per year. Residential buildings are usually purchased under freehold, and apartments under leasehold. British law strictly protects the buyer, and when buying in the form of leasehold, you can be sure that the owner of the land will not terminate the lease agreement spontaneously. The bulk of real estate transactions in the UK are carried out on leasehold terms. Buying process The whole process of buying a property in the UK usually takes about two months, but depending on various factors, such as the number of people involved in the transaction or the type of ownership, the timing may vary. After the buyer has chosen the property and agreed on the price with the seller, the process of the transaction itself begins. First you need to reserve the property you like. For this, a reservation agreement is signed and a deposit of up to 1% of the value of the object is paid. The reservation fee, which is included in the price of the property, guarantees the withdrawal of the property from sale until the signing of the contract between the buyer and the seller. As soon as the deposit is paid, the law firm representing the interests of the buyer begins work on legal support of the transaction. The contract is usually drawn up by a lawyer in a standard form. It contains all information about the condition of the property, as well as plans for the layout of the microdistrict. If the purchase is carried out using a mortgage loan, then it is necessary to conduct an independent expert assessment of the real estate, which is paid for the buyer. The technical condition of housing, the condition of housing communications should be indicated here. The cost of such a check depends on the area of the object. Before the exchange of contracts has taken place, the parties are checking the legality of the home purchase transaction. The first payment in the amount of 10% of the total cost of the purchased property is made simultaneously with the signing of the contract. The end date of the transaction, which is indicated separately, is the date on which the buyer takes over the ownership of the property. After exchanging contracts, the lawyers of both parties draw up a deed of purchase, which serves as an official certificate of transfer of the property to the property of the buyer. This stamped document must be submitted to the Land Registry in order to register the transaction. After that, the property is re-registered in the state register. Also, after exchanging contracts, the buyer needs to insure the property. Stamp duty is payable at the UK Internal Revenue Service (Inland Revenue). Its size depends on the value of the property and is up to 5% of its value: up to 125,000 pounds - not paid from 125,000 to 250,000 pounds - 1% from 250,000 to 500,000 pounds - 3% of 500,000 pounds - 4% over 1,000,000 - 5% (from April 2011) If the buyer buys a home in the UK for the first time and the purchase price is less than 250,000, he is exempt from paying stamp duty. But from March 24, 2012, the tax on first-time buyers of housing will be taken in the amount of 1% when buying real estate from 125,000 to 250,000, and in the amount of 3% if the cost of housing exceeds 250,000 pounds. At the final stage of the transaction, money is transferred from the buyer's lawyer's client account to the seller's lawyer's client account. If the deadline for the completion of the transaction is delayed, then the guilty party will be subject to penalties. Documents In the UK, a property can be registered as an individual or legal entity. In the case of a transaction for an individual, it is necessary to provide: originals (certified copies) of civil and foreign passports, confirmation of the buyer's address (a copy of the apartment bill, telephone, electricity), confirmation of the legitimacy of the buyer's source of funds in the form of a letter from the bank from which payment will come for the purchase of housing. When registering real estate for a legal entity in each case, the list of documents is compiled individually. However, usually the package of documents includes: passports of the owners, confirmation of their addresses, memorandum of association, confirmation of office registration, certificate of company registration, information about all responsible persons who are authorized to sign company documents, as well as confirmation of the legitimacy of the source of the company's funds in the form of a letter from the bank from which the payment for the purchase of housing will come. Payments Money for the purchase of real estate is transferred to the client's account of a lawyer. According to British law, it is necessary to ensure that the buyer's income is legal. To do this, the lawyer sends a request to the bank, from which money will be received to pay for the purchase. In the case of registration of real estate for an individual, the money must belong directly to the buyer, if it is a legal entity, then the funds must be in the company's current account. Most UK banks are ready to provide a mortgage loan if necessary. Typical offers and prices The first place in the UK real estate market for Russian citizens is undoubtedly occupied by London. Russians are attracted by the prestige of the financial capital of Europe, and therefore the bulk of purchases falls on luxury real estate in areas such as Knightsbridge and Chelsea. Both old houses and modern projects are presented on the country's housing market. However, most buyers prefer modern residential developments over historic buildings. Apartments in prestigious areas of London cost from 1 million. A square meter here usually costs 10,000-25,000. A typical townhouse on the outskirts of London can be purchased for 200,000-300,000 pounds, but such real estate is not interesting to buyers from Russia. The housing market outside London is significantly different - here the main demand is formed by the local population. HomesOverseas.ru