Buying a house in the UK has always been a difficult choice for international students.But you still have to make the specific decision yourself whether to buy a house or not.The first things to consider are these questions.
1. Do your parents support buying a house in the UK?
2. In the future, will you develop in the UK or return to China?
3. Do you know the various regions in the UK?
4. Do you have a favorite area?
5. What is your budget?
Of course these are all personal factors.#{ 58}.
Let’s analyze some common problems when buying a house in the UK.
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1.Students can Want to buy a house in the UK?< /p>
Yes.Whether they are overseas investors or British students holding T4 student visas, as long as they are over 18#{13 } years old, you can buy and hold local real estate in your own name.
According to British law, dissatisfaction18#{24 } A person who is 25 years old cannot hold real estate in his or her own name.However, their parents can "represent#{ by setting up a trust fund (Trust) 34}”The child holds real estate.
2. Full payment or loan, how to choose?Full payment or loan, how to choose?
For off-plan properties, the buyer’s loan or full Payment is accepted by seller / developer.The only difference lies in the allocation method and time of the buyer's funds, because for British properties, the loan or cash payment is completed during the delivery time.
For existing houses, the full payment is relatively more likely to be sold by the seller#{73 } /The developer accepts.Because they usually want to hand over the house as soon as possible, and for buyers who need loans, especially overseas buyers, it will usually take an additional 3-6 months.In the current tight UK property market, this will be relatively disadvantageous.Since international students do not have a fixed source of income, it is more difficult to successfully obtain loans from banks. In this case, they may consider taking out loans in the name of their parents in China.
If you want to hand over the house as soon as possible, especially the existing house, because the loan process is relatively long, you will have enough money at home. In the case of foreign exchange reserves, full payment is faster.The one-time investment when buying a house can wait for student employment in the future. ��, after having a stable income, take out a mortgage loan(remortage).
3.How to prepare proof of funds when buying a house with full payment ?
The UK has very strict anti-money laundering laws. If any money does not have a reasonable source It means that the transaction cannot be passed.
All buyers, whether buying a house with full payment or a loan, need every amount of funds Provide three corresponding proofs: identity, address and source of funds (bank statements, etc.).For international students, in addition to their own certificates, since the source of funds is their parents, their parents are also required to provide all three certificates, as well as relevant materials such as parents' fund donation agreement issued by a lawyer.
4 If you return to China after graduation, the property purchased Can it be hosted?
Don’t worry, there are professional property rental companies in the UK that provide related services.In addition to finding tenants for landlords, we can also handle tenant check-in and check-out procedures, collect rent, and pay water, electricity, coal and other expenses on a regular basis. In addition, it is also responsible for the maintenance and repair of the residence and meeting the reasonable requirements of the tenant. When the tenant defaults on rent or damages the house, it will help the landlord evict the tenant when extreme circumstances occur.
5 How to bid for a house in the UK?
If you are satisfied after making an appointment to view the house, you can make an offer at this time.
Different from China, second-hand houses in the UK use a bidding model, and buyers give quotes to agents individually. The one with the highest price at the end wins.For example, if the property is listed on the website with a starting price of 200K pounds, you should consider a suitable price (Offer# {81}) reported to the intermediary, who Everyone hopes to buy a good house at a reasonable price, so bidding is a science. You can consider the following points to determine the price:
HM Land Registry is the British government’s official real estate transaction record website. You can check how many times the house you want to buy has been traded before. What is the price of each transaction? From this, you can learn about the range of your own bid.Rightmove can also query transaction records and shares the same database with HM Land Registry.
Build a good relationship with the agent. Yes, Britain is also a "relationship society". If you really like the house, you can You can chat more with the agent and let the agent hint to you how much other buyers are bidding and what the homeowner's ideal transaction price is. Through these (off record) Information, you can also roughly get your competitive bidding range
Although there is no absolute advantage in paying in full, there is still If you are competitive, you should tell the agent your advantages.At the same price, sellers will be more willing to sell to Cash Buyer, because there are many procedures for borrowing and buying a house in the UK, and many buyers may end up failing to apply for a loan. Give up buying a house.Cash Buyer The seller can pay off the money faster, why not the seller
#{ 62}6House property rightsFreehold, Leasehold#{ What is the difference between 73} and Tenanted?
When buying a house, you should also pay attention to one key information#{87 }——That is the property rights of the house.
Freehold refers to the unconditional ownership of a house. This ownership refers not only to the house itself, but also to the land it occupies. #{10 }
Leasehold refers to the right to use, that is, the land owner is the property The permanent owner, while the buyer only has a non-permanent right of use for up to 999 years. Basically apartments fall into this category #{25. }
Tenanted As the name suggests, a house is bought for rent. It is suitable for people who want to invest in real estate. Because the house is bought with rental income, please note that the property rights of such houses can only be used for rent and cannot be lived in, so friends who want to buy a house to live in should pay attention.
#{36 }For international students to buy an apartment, the vast majority of CASE Houses are Leasehold especially in big cities like London
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7How much are the legal fees and related costs for buying a house in the UK?
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When buying a house in the UK, you must go through a lawyer. The house transaction is conducted between the buyer's lawyer and the seller's lawyer. Your purchase funds must also be transferred to the lawyer's account first, and the lawyer will Represent your source of funds before paying the buyer, so the choice of lawyer is very important! {75}The most important thing when choosing a lawyer when buying a house is to look at his professionalism and processing efficiency. Generally speaking, your housing agency will recommend a law firm to you. You cangoogleCheck the law firm’s review, especially the negative review review. Think about it again.
In addition, it is not necessary to choose a law firm in this city. In fact, the whole process does not It involves "Face to Face", so communication must be done by email and phone whether in this city or outside the city.The location of the law firm is not important, the timeliness of the response is most important.You can ask several law firms for quotes to make a choice.Generally speaking, the legal fees for a house worth around £200K are between 1000-1500 pounds.
In addition to house prices and legal fees, there is also a related fee that is stamp duty (#{ 37}Stamp Duty), but if you are buying a house for the first time and the house price is less than 250K pounds, you can Stamp duty reduction.Generally speaking, international students are buying houses for the first time, so basically this part of the cost can be exempted.
8How long does it take to buy a house in the UK?
Generally speaking, the process from confirmation of purchase to the involvement of lawyers of both parties to the final successful transaction of a house takes approximately It takes 2-3 months.During this period, the lawyer will ask you to review and sign a lot of documents, which may seem complicated, but in fact, they follow the process and steps step by step. It is actually quite simple.
9 Is it possible to use the house to support education# {77}
The UK is a country with a long educational tradition and the world's top educational resources. It is sought after by international students from all over the world. In recent years, more and more international students have poured into the UK , the UK has become the second most preferred country for Chinese students to study abroad after the United States
In the UK, Public schools require enrollment "zoning" for admission, while private schools do not have such restrictions. Private schools are open to the whole society, and both international students and local students can apply for admission. As the name suggests, using a house to support your education means offsetting the cost of studying abroad by buying a house overseas. That is, purchasing a property in the country where your child is studying, and using the rent and appreciation of the house to offset part or even all of the cost of studying abroad. Under normal circumstances, tuition fees in the UK increase every year.#{24 }3%-4%, the growth rate of London house prices is6%-7%. Faster than tuition fees increasing
to buy a set in London #. {41}1 Bedroom real estate is an example. Suppose you study in the UK for 5. The annual tuition and living expenses during this period are approximately #{. 48} 3 million pounds, the house bought is 60 million pounds, the rental income is conservative 400 pounds per week, which is 1600 pounds per month. The average annual growth rate of London property values is #{ 64} 7%, held for 5 years, then sold
#. {74}House price60House worth ten thousand pounds, annual increase#{84 }7% is 4.2 million pounds, and holding it for five years is # {7}21 million pounds income;
Rent# {18}400 pounds per week, which is 1600 pounds per month, holding #{ 27}5 is an income of 8 million pounds;
The annual expenditure on studying abroad is 3 million pounds, and studying abroad5# {48} is an expenditure of 15 million pounds;
Final income: 21 + 8 -15 =14 million pounds, which means studying abroad# {67}5You can return home with 14 million pounds
#{76. }But not all houses are suitable for housing to support education.
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Generally speaking, new houses are a better investment choice than second-hand houses. The maintenance cost of second-hand houses is usually higher than that of new houses. The important factor is maintenance costs; before buying a house, it is difficult to evaluate the various maintenance costs incurred after investing in the property. Therefore, new homes can reduce uncontrollable risks. 93 }
Secondly, the location of the property is directly It is related to rental income and investment return. It is located in the core area of London and is surrounded by rich educational resources. Not only is it convenient for children to go to school, but the income is also more secure.
Dear parents of international students, if you encounter any problems during the process of purchasing real estate in the UK, please feel free to consult us at any time Lansha Real Estate Consultants, get professional investment advice.
