Buying UK Property From Abroad – Key Considerations

Buying property can feel incredibly daunting, as such transactions tend to involve individuals committing considerable sums of money, which in most cases represent a significant portion or most of their capital and assets. Buying real property from abroad, from outside of the jurisdiction, would I imagine be even more daunting.

Here are just some of the key things you need to be aware of when purchasing a UK property from abroad.

What documents will I need?

When we act in a residential property transaction, we are subject to a whole host of regulatory obligations from across multiple legal regimes. The most prominent for most of our clients is the Anti-Money Laundering regime. This framework of different Acts of Parliament and Regulations requires us conveyancers to identify our clients, verify the source of their funds, and ensure the money used is legitimate and are not the proceeds of crime or ill-gotten gains. 

We need to be able to identify our clients and trace the money back, we must identify the source of wealth and source of funds. Where we act for clients who are abroad however, we cannot always verify the authenticity of documents ourselves. For this reason, we ask that copy documents be certified – for example by another solicitor. However, for documents originating in another country, we may ask you to provide us with a “notarised” copy. 

How can I verify my documents?

A notary or notary public is another type of lawyer, but for the purposes of this post they notarise or certify documents that cross borders, please see the Notaries Society for more specific information. This way, when a document comes from abroad for example a bank statement from the United States, the notary certifies (by notarising the document) that it is authentic. For copy documents produced in England or Wales a solicitor or similar can certify the document, however when the document comes from abroad, most solicitors would not feel competent (or indeed be suitably qualified) to certify its authenticity. Hence, the notary.

What if my document needs translating? 

When a document has to be translated before a copy can be provided, we need a “legal” translation and certification of the same, as not all words and phrases translate the same and of course this applies to “legalese” or terms of art. Consider as an example a couple who married in Mexico and have not updated the wife’s passport to show her taken surname. As the Marriage Certificate will be in Spanish, here we would ask for a legal translation and notarised copy. The notary would therefore provide certified copies of the original, and the translation they have made. This tells us the copy is a true copy and means the same. 

Tax implications for non-residents

If you’re not a UK resident at the time of purchase, you may be subject to a Stamp Duty Land Tax (SDLT) surcharge. Where two or more people purchase a property together, if one is non-UK resident, then all will be treated as such, therefore the surcharge remains payable. Even if the buyer intends to move to the UK to live in the property, this is still the case as they are non-UK resident at the time of the purchase, the effective date, and this is when the SDLT is charged.

The immigration status of an individual is not relevant to whether you are resident for SDLT purposes. The test for SDLT residency is specific and guidance is available online.

What if I’m buying through an overseas company?

Purchasing property through a company registered outside the UK brings additional considerations, including compliance with the Register of Overseas Entities. This adds complexity and should be approached with legal advice.

As you can see, whether the property is the right one, looks right, feels right is just the beginning. Ensuring the transaction is legally sound and compliant is essential.

Contact myself, Joshua Kingston, or the Residential Property team at SE-Solicitors for clear, strategic advice tailored to your property transaction.