Regency Residential | Foreign Investment - Laws - Regency Residential


The United Kingdom has no restrictions on foreign ownership of residential property (this is not the case in all countries). For example, some countries foreign persons need to apply for foreign investment approval before purchasing residential property.

At Regency Residential we are always happy to guide overseas nationals on acquiring UK residential and commercial property whether as an investment or for owner-occupier purposes. Our consultants are always happy to help without obligation, helping you explore the various practical ways you may invest in UK property.  

-We can assist you with finding the most appropriate method of finance by putting you in contact with trusted financial advisors.

-Introduce appropriate advisors including legal advisors and letting management agents

Our trusted financial advisors will be able to assist you with:

-Identifying and maximising tax deductible expenditures and capital allowances.

-Establishing non-resident status with the HMRC

The New UK and European rules have tightened lending regulations, this can potentially affect the UK and non-UK based buyers of British property. For many investors, however, the opportunities created by increased demand for rented accommodation can outweigh these initial challenges.


UK Tax And Rental Income

There are no restrictions on foreign ownership of residential property in the UK but there are rules in place to ensure that tax is paid when a property is purchased and in relation to any rental income received.

UK Income Tax is purely based on the income generated from letting a property within the UK – regardless of the owners residential status; whether than be overseas or within the UK.


The Effect Of The EU Vote For Foreign Investors

There are many reasons why the UK has become an attractive investment prospective. The EU vote has created more favourable exchange rates which means property prices are cheaper than before for foreign investors.


Foreign Investment /Frequently Asked Questions

Q: Can any nationality outside of the UK buy property within the UK?

A: Yes. The UK property is open for investment for all nationalities.


Q: As a non-resident can I apply for a mortgage?

A: No. Currently, non-residents of the UK cannot get a mortgage, this also applies to UK nationals living abroad. You will need to borrow capital from overseas or use your own funds to raise capital.


Q: Can I purchase a UK property without ever visiting the UK?

A: Yes. We do however recommend that you do extensive research with the guidance of our consultants in order to ensure that you are purchasing the right type of property that suits your needs.


Q: What is the most difficult aspect of purchasing for overseas investors?

A: A common issue for overseas buyers is identification to the satisfaction of both parties solicitors. Common forms of identification are; passport, Address ID e.g. driving license, utility bill.  


Q: Can I use my UK property for holidays to the UK?

A: Yes, this is not an issue for holidays for short periods of time, anything under a period of 4 months. If not always as easy as initially anticipated – there are many issues with leaving your property investment empty for long period of times.


-Leaving property empty for long periods of times is not a good idea for security reasons and damp problems.

-If you were to rent out, legally agreements tend to last for 6 months plus.

-If you give tenants notice then you will need to clean the property.

For all the reason above, it is best to invest in prime investment property in the UK that is likely to be easily rented out with minimal void periods. The rental income generated by such property can be used towards your rental accommodation – this method is likely to be much more cost effective and gives you more flexibility in terms of locations.


Q: How do I make payment for an investment property?

A: Capital is transferred once you have agreed to purchase and have signed a reservation agreement. Property in the UK will always be priced in sterling pounds (£). Payments can be made in any currency and converted to sterling pounds.


Please bear in mind that tax rules might change in the future and that their effects depend on individual circumstances. Regency Residential does not offer tax advice. You should seek independent advice if you are unsure.

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