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A Guide to the UK Property Purchase Cycle

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You’ve thought long and hard, and have decided to invest in UK property. What happens next? This article will guide you through the different stages of the UK property investment process. Get more information on our presentation. – PowerPoint PPT presentation

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Title: A Guide to the UK Property Purchase Cycle


1
A GUIDE TO THE UK PROPERTY PURCHASE CYCLE
2
Youve thought long and hard, and have decided to
invest in UK property. What happens next? This
article will guide you through the different
stages of the UK property investment process. It
starts with choosing a property that fits your
budget and investment goals and appointing an
agency that can take you through the purchase
process. Unless you dont mind the hassle of
traveling to and from the UK to deal directly
with the developer/seller, a good agency will
help you select developers carefully, i.e. those
with a good track record of completing projects
on time. It is important that your agent works
closely with the developers, facilitating
communication from the developer to you, and vice
versa.
3
1 Property Reservation
  • We recommend investments based on your goals
    and budget, and once you have decided on the
    property for investment, you will need to
    sign Reservation Forms and a Solicitors
    Appointment Letter.

4
2 Anti-Money-Laundering Checks
  • The Anti-Money-Laundering process is a very
    important part of buying UK property, and is done
    by your solicitor on behalf of the UK Government
    to ensure that your purchase funds are not
    related to suspected money-laundering and
    terrorism links. Your solicitor will ask for
    proof of your identity, residential address,
    availability of funds and its sources.

5
3 Exchange of Contracts 1st Payment
  • Once you have completed the
    Anti-Money-Laundering process, you will need to
    sign the Sale and Purchase Agreement. This is
    normally done within 28 days of your solicitors
    receiving the contract from the sellers
    solicitors. Together with this Agreement, you
    will make your first payment to the developer via
    your solicitors. This amount varies from one
    developer to another.

6
4 Financing
  • You may apply for financing while purchasing
    UK residential property with a value in excess of
    100,000. Application for financing can be done 3
    to 6 months before settlement, and the banks will
    assess your financing position and eligibility.

7
5 Final Settlement Stamp Duties
  • When your property is nearing completion,
    the developer will send a Completion Notice to
    your solicitors. You will need to make full
    payment for the property at this stage, which is
    also known as the final settlement, and pay any
    applicable stamp duties to HM Revenue Customs
    (HMRC).

8
6 Property Management 
  • When you exchanged contracts with the
    developer, you may have signed an agreement to
    hire a letting agent. You may also have chosen to
    manage the property yourself. The letting agent
    will ensure your property is well-maintained,
    taking care of all expenses involved, and
    collecting the rental on your behalf.

9
7 Rental Income
  • You will need to pay income tax to the UK
    Government once your property starts generating
    rental income. We can recommend a qualified
    professional in the UK to manage your taxes. You
    may also file your rental income taxes to HMRC
    through self-assessment (using form NRL1). 

10
8 Property Resale/Exit
  • Should you choose to sell off your property,
    we can recommend a property agent and solicitor
    to assist you. The agents commission rates, your
    advertising budget, and exclusivity will be
    decided by you and the agent. The agent will
    provide an appraisal of the property indicating
    how much they expect to sell the property for,
    and tell you how they plan to market your
    property.  

11
Thanks You
  • If you are interested to explore investing in UK
    property for high returns, or if you need us to
    refer you to a good tax firm in the UK, dont
    hesitate to give us a call at (65) 3163 8343
    (Singapore), 03-2162 2260 (Malaysia), or email us
    at info_at_csiprop.com!
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