For UK Property Investment

Frequently Asked Questions

Certainly. The UK welcomes international buyers, and there are no restrictions on foreigners purchasing property. In fact, non-citizens and foreigners can also secure a mortgage. To make the process smoother, we highly recommend partnering with a trusted advisor to connect you with a reliable UK-based solicitor to handle all the necessary legal documentation.

Getting started is easier than you might think. Investing in an overseas market requires some due diligence, but with trusted advisors, you don’t have to go it alone. The team of advisors including agents, solicitors, and developer’s customer service team will be with you in every step of the way from financial planning to setting both short and long-term goals, signing, construction update, and post completion support.

No, owning a property in the UK doesn’t automatically grant residency or immigration status. Residency requires a separate visa and immigration process.

Yes, you can. The UK is an international market, and most mortgage lenders are familiar with foreign applicants. While there may be requirements for a higher equity contribution (usually 20-30% of the property cost), there are mortgage brokers specializing in the UK property market who can provide a wide array of financing options. Besides, there are banks in Malaysia offering financing to Malaysians based on their property’s location and city.

No worries. Property management companies are your go-to solution. They handle day-to-day tasks, including finding tenants, screening, addressing tenant concerns, and ensuring your property complies with local regulations, ensuring your investment is in good hands. 

Indeed. Engaging a local lawyer is crucial for a successful property transaction in the UK. They guide you through the legal requirements, conduct necessary checks, and ensure a smooth process, from the Sale and Purchase Agreement to tax compliance.

Beyond the property acquisition cost, various supplementary expenditures merit consideration:

  • Stamp duty: Levied on properties exceeding £125,000, the rate varies between 2-12% contingent on the purchase price.
  • Mortgage expenses: Encompassing arrangement fees and valuation costs.
  • Legal fees: Irrespective of mortgage acquisition, solicitor or conveyancer engagement is essential.
  • Land registry fees: Incurred to effect the transfer of legal deeds to the new owner

Whether you are a UK tax resident or non-UK tax resident, you must report your income to the HMRC. You will be required to pay tax on any profit made from renting out the property, less any deductions which are considered “allowable expenses”, which include but are not limited to:

  • Property Manager/ Agent’s fees
  • Your accountants’ fees
  • Ground rent
  • Service charges paid for the property
  • Landlord and/or additional buildings and contents insurance
  • Costs of any maintenance and/or repairs within your property
  • Property specific travel (eg. if you have to travel to the UK to meet your tenants or letting agent)

It is highly recommended that you seek professional tax advice from UK tax accountant about your expenses to ensure accurate declaration post deduction of qualified allowable expenses.