Buying property in England

I don't think that there are any restrictions on a foreigner purchasing property in England.  There are many foreign investors.

The usual place to start is an Estate Agent - you would know these, as they generally have a shop front, displaying properties on sale.

You would generally go to view the property which you are interested in, accompanied by the Estate Agent.  If you like the property, the next stage is purchase.  There are three main routes for this:
- The commonest is that you make an offer of what you would like to pay (usually lower that the asking price) to the Estate Agent.  He/she will communicate with the seller, who will accept, or reject the offer.  The process continues until the offer is accepted.  Having an offer accepted is not legally binding (until contracts are exchanged - see below) and the seller can pull out, or accept a higher offer, if they wish.

- Public Auction:  Properties re-possessed by the banks are often sold in this way and you can get a really good deal.  As with any auction you go to the venue.  The properties will be listed in a catalogue, with guide prices, to assist you.  You then bid on the property which interests you.  Highest bidder wins.  Auctions often have commission charges.  There is sometimes less opportunity for viewing property, but you can have the property surveyed, for defects.  On bidding successfully, you would be expected to pay a deposit, perhaps 10% immediately and the balance after something like 28 days.  It is legally binding, therefore it is vital that you know your financial position prior to bidding.

- Sealed bids:  You have an opportunity to view the property.  Your offer is written down and sealed in an envelope, to be submitted by a set date.  The envelopes are opened on that date and generally, the highest offer is accepted.  The process is not legally binding until contracts are exchanged (see below) and the vendor doesn't have to accept any of the offers. 

After the offer is accepted:
Finance:  Unless you have the cash, you will be applying for a mortgage.  These are available to foreign nationals (internet search).  You can generally approach a mortgage lender, before you start looking for a property.  Based on your financial position, the lender can tell you the maximum amount that you can borrow.  A lender will rarely give 100% mortgage, therefore you would be expected to provide 10% or more, in deposit.

Legal:  Property purchase is generally handled by a solicitor (lawyer).  The seller will have engaged their own solicitor and the purchaser arranges one.  The Estate Agent may be able to recommend one, or you can contact several, as their fees can vary.  The solicitor will handle all the legal issues around purchase, including checking whether the property is subject to flooding, any planned development in the area (new roads, factories etc).  The plans are obtained from Land Registry.  The solicitor also handles the financial side, liaising with the mortgage lender.

Once the solicitor is satisfied that evertything is OK with the property, contracts are exchanged.  At this point the deposit is paid (usually to the Solicitor) and on signing the contract, you are legally bound to purchase the property (financial penalties are severe, if you pull out after this).

After this, the deal moves to completion, when the balance is paid, by the mortage lender, to the solicitor, who transfers it to the seller.  At this point, taxes are also paid.  After completion, the solictor will invoice.

Surveying:  An essential part of the buying process is the survey, even if you are a cash buyer, you should have the survey done, to assess for defects in the property.  A mortgage offer is always subject to a survey, usually fairly basic.  This is generally to ensure that the property is worth the price its being sold for.  The surveyor will carry out a survey according to what you have asked for - more expensive = more thorough.   A proper survey might cost over £1000, but might save ££££, later, if there are hidden defects.

Government Taxes:  Stamp Duty Land Tax is payable on properties over the price of £125 000.  It is worked out as a percentage of the purchase price:  Basically it is:  1% up to property value of £250 000, 3% to £500 000, 4% to £ 1 million and 5% above £1 million.  VAT (currently 20%) will apply to all professional fees.

That is basically the purchase process.  I have tried to outline the main points.  Do a online search for more information.  The link below to a UK Government website, is a good place to start.

http://www.direct.gov.uk/en/AdvancedSea … a+property

Happy house hunting!!!