Procedures of Purchasing UK Property

1. Reserve Unit

First, select the property and unit type. Then, 500 - £1,000 is payable as a reservation fee which is non-refundable.

2. Assign an Attorney to Sign Sales & Purchase Agreement

Sign an agreement to assign an attorney as a representative of the buyer to sign the Sales & Purchase Agreement in the United Kingdom.

3. Pay First Instalment

After signing the Sales & Purchase Agreement, 10% of the purchase price is payable by the buyer to the attorney of the developer's trust account.

4. Apply for Mortgage

6 months before handover, the buyer is required to apply for mortgage.

5. Pay Part of the Amount

Some of the UK properties requires the buyer to pay partial amount of the purchase price 6 months after signing the contract.

6. Handover

When the project has been completed, the attorney will notify the buyer to check the unit. (It can either be carried out by the attorney or local surveyors). After checking the unit, the attorney will confirm the handover date. On the day of handover, the bank will release the mortgage amount to the developer. The buyer is required to transfer remaining amount before that. When the buyer gets the key, the transaction is officially completed.

7. Rent Out the Property

When the buyer has got the key, you can assign a property management company in the UK to manage your property. They can provide services such as looking for tenants, checking and maintaining the property, paying taxes for the owner etc. The expenses will be charged directly from the rental return.


Q: What is the percentage of mortgage I can apply for purchasing UK property as a foreign investor?

A: Foreign investors can apply for up to 70% mortgage. The interest rate can be as low as 4.25% per annum and loan period can be 25 years.


Q: Are there any expenses when I buy / sell UK property?

●Service Fee - Charged by the rental management company and depends on the size of the unit. Generally, it will be charged for £2 -£3 / square meter.

●Letting Fee - Will be charged when the property owner rents out its property. A 10% of the total amount of rent will be charged once. 


One-off Taxes:

●Stamp Duty Land Tax (SDLT) - One of the most expansive taxes in the United Kingdom when someone buy a property. It is normally payable after signing the contract in 30 days. The amount will vary according to the size, usage and the property right.

Other Taxes:

●Ground Rent - No definite amount and varies from property to property. For example, some of the contemporary apartments will be charged £200 - £300 per annum, whilst some of the properties owned by the UK government might only charge for £10 per annum.

●Income Tax - Non-UK residences are required to report the rental income of properties in the UK. The tax rate is charged at 20% of the rental income but it can be waived. For details, please refer to HM Revenue & Customs (

●Council Tax - It is not necessary to pay for the Council Tax if you rent out the property and it will be bare by the tenant. The charges vary from property to property and the exact amount will be notified by the department before the tenant moves in.

Expenses when you sell UK property

●Capital Gain Tax - 18% of the profit from selling the property.

Check out UK Property for Sale HERE

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