Here’s our guide to restrictions on property ownership in the UK – a foreigner’s guide.
As an overseas real estate purchaser considering investing in the UK, you’ll need to check what, if any, restrictions apply to you before you spend time and money on your property investment, our guide focuses on England and Wales, who follow the same tax and real estate market rules.
The good news is that, unlike some countries, there are no restrictions in the UK on foreign investors buying property
Whist there are no restrictions on foreign ownership there are a number of factors to be aware of.
Firstly, The majority of large developers in the UK will market London new developments domestically before widening their sales and marketing campaigns to international investors. However, as the majority of purchasers in the UK are owner occupiers, most are not early adopters and will not commit to an off plan property investment, which is great news for international investors like yourself.
Secondly, whilst not a restriction, both domestic and foreign property investors must satisfy an Anti Money Laundering (AML) Checks, under the Money Laundering Regulations 2017, as part of the customer due diligence measures.
So, what does this mean to you as a property investor?
- You must show proof of your given and family name, date of birth and residential address using the identity evidence that has been issued by a recognised body.
- Due diligence checks are carried out on all purchasers on whose behalf the transaction or activity is taking place.
- You will need to provide evidence of the source of funds.
- Under UK law, both your real estate solicitor and the property agent selling the property will carry out AML when an offer to purchase the property is accepted, but this is often handled by a third party on behalf of the property agent.
Purchasing property off plan in your own country or internationally can be a complex process, so to help bring some clarity we have produced a Buyer’s Guide to the UK which we have designed to be a straightforward easy to follow reference to help understand the purchase process.
Read in conjunction with our other articles on investing in the UK and this should give you an understanding of the market. Why not read our latest UK Market Review for the latest on the UK property market.
We’ve produced articles not just for the UK, but also Australia and New Zealand, so make sure you take the time to consider all your options and make sure your investment is right for you.
Important notice: Proptech Pioneer and its associated companies seeks to provide investors with guides, information and tools, but we cannot guarantee this information to be accurate or perfect. You use the information at your own risk and accept no liability if you rely on this information. Proptech Pioneer is not a tax advisor, conveyance, lawyer, financial advisor or mortgage advisor. You should seek independent advice from independent professionals before making any investment decision