Welcome to my ‘Quick Q&A’ series in which I will address questions that I am often asked by my clients and highlight issues that affect their international residential investment decisions.  Each week I will be sitting down and asking 5 questions, working alongside a group of industry experts to answer your most frequently asked questions.

This week I sat with Emily Lui Partner and Co Head of Residential Real Estate at Seddons Solicitors

1. London is still in lockdown, how can I buy a Property?
 
Whilst all non essential shops and leisure sites are still closed, the government have lifted the restrictions for those businesses connected with the housing market, this means that as long as estate agents, surveyors, valuers and the public adhere to the physical guidelines (self distancing, gloves, masks and generally not touching anything!) viewings and valuations of properties can still ago ahead. Law firms are able to take on new clients and we can replace face to face meetings with video calls and couriers can be used to send signed documents where originals are needed. 
 
2. What is Stamp Duty (SDLT) and why do I need to pay it?
 
Stamp Duty (now known as SDLT) is a tax which the UK government charge when a property is purchased in England & Wales. The amount payable depends on a) the status of the buyer and b) the price of the property being purchased as they are different rates applicable.
 
One of the issues that many buyers find is that there is a higher rate of SDLT payable for anyone who already owns another valuable residential property worldwide (either in their name or as the beneficially of a trust). The UK government treat a husband and wife as one family unit, so this means that if a wife was buying the property in England and she has no other residential property worldwide, if her husband does, then the higher rate of SDLT will apply.
 
 
3. Will the Stamp duty (SDLT) rates go down soon?
 
I am afraid we have no indication from the UK government that they will do this. There was an announcement in this years budget that there will be an INCREASE in SDLT payable by foreign buyers by 2% from the 1st April 2021. With this in mind a foreign buyer should look to purchase in England & Wales before this date to prevent having to pay the higher SDLT rate.
 
4. I want my children to be on the title of a property I buy in England, is this possible?
 
In the England & Wales a person has to be over the age of 18 to be able to be a legal owner of a property. It is possible for children under the age of 18 to be the beneficiaries of a trust that holds the property but they cannot be named on the title until they are 18. 
 
 
5. I want to buy an apartment from a developer but the development won’t be ready for 3 years, can I get out of the contract if I decide I don’t want to by the apartment ?
 
Once you have exchanged contracts with the developer you have entered a legally binding contract, this means that you will have to complete the purchase when the apartment is ready. Many of the contracts with the developers allow for you to assign the contract to a 3rd party buyer, this means that you could find another buyer who will pay you for the contract and will step in your shoes and complete the purchase with the developer when the apartment is ready. If you do this then you won’t have to complete but a word of warning, if the 3rd party buyer doesn’t perform and complete with the developer then the developer could legally require you to complete the purchase as the original contract was with you.

If you have any questions or other topics that relate to purchasing property overseas, let me know how I can help HERE.  Savills are connected to a wide network of partners and if we are unable to assist directly, we will certainly connect you with a trusted partner who can be of service.