Solicitor Martin Whitehorn discusses key considerations for overseas buyers looking to purchase a property in England.
Property solicitor Martin Whitehorn
1. IS YOUR SOLICITOR ABLE TO ACT FOR YOUR MORTGAGE LENDER AS WELL AS YOU?
When buying a home with a mortgage, your mortgage lender will require a lawyer to act for it on the purchase as well as you; usually this is the lawyer already assisting you with the purchase. Mortgage lenders have numerous requirements for solicitors before they will become a solicitor’s client, so not all solicitors will qualify.
It is therefore important to check whether your solicitor can act for your mortgage lender as well as you. You can also read here about information that estate agents must disclose to potential buyers.
2. WILL YOU HAVE TO PAY STAMP DUTY LAND TAX (SDLT) FOR NON-UK RESIDENTS?
In England, SDLT is often incurred on property purchases. There is currently a reduction in SDLT on residential property until 31 March 2025. Even if you do not have to pay SDLT, you may still have to complete an SDLT return to confirm the lack of tax liability, which your solicitor can do on your behalf.
If you are not currently resident in the UK, the government places a 2% SDLT surcharge on residential property purchases in England by non-UK residents. This is separate to the UK Statutory Residence Test and ‘right to reside in the UK’ status.
It is possible to claim a refund of the 2% surcharge within 2 years of the purchase being completed, depending on the number of days you have been present in the UK in a single 365-day period. It is best to discuss your eligibility for any SDLT refund with your solicitor from the start of your purchase, so that this can be worked on all the sooner.
3. WILL YOU HAVE TO PAY THE HIGHER RATE OF SDLT FOR BUYING AN ADDITIONAL DWELLING?
There is a 3% higher SDLT rate on residential property in England where you (or your spouse or civil partner) own more than one dwelling anywhere in the world. Again, it is important to check with your solicitor from the beginning of of your purchase whether you have to pay this, along with any other factors like multiple dwellings relief or mixed-use property
4. IS YOUR SOLICITOR READILY AVAILABLE BY PHONE OR EMAIL?
This depends on the type of law firm you are dealing with. Some conveyancing firms have around 60-80 clients per lawyer at any one time, so those lawyers cannot make themselves readily available for their clients to talk things through as easily or in as much detail as others, which can be especially important with an auction purchase.
Similarly, ‘lawyer’ does not always mean you have your own solicitor, as ‘lawyer’ is not a protected title in England, unlike regulated solicitors who have to be qualified, trained and insured. There are also ‘bogus’ solicitors, who are people pretending to be solicitors. A ‘lawyer’ on your sale or purchase must be supervised by a regulated individual like a solicitor, chartered legal executive or licensed conveyancer.
At Julie West Solicitors, I and my fellow solicitor colleagues provide specialist tailored legal advice directly to clients, rather than risk overloading ourselves with too many clients and becoming unable to properly help.
Julie West Solicitors is able to assist with residential and commercial property work including:
And more besides
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