3 Ways Property Investors can Diversify their Assets to Adapt to the Current Economic Climate

As the world economic climate continues to change, it is vital that property investors adapt to make the most of their investments and hedge against downturns.

1. Diversify Location:

Spread your assets in different parts of the country. Different cities perform at hugely variable levels. Whilst London remains the favourite choice, investors should divest their least profitable assets and relocate funds to Manchester, Birmingham and Liverpool which are upcoming areas with high returns and relatively low prices

2. Type of property:

With the world moving towards a hybrid way of working post Lockdowns, commercial investors need to bring in more residential real estate into their portfolios as more companies are allowing the work from home model a few days a week. Apartments and apartment blocks are a great addition.

3. Change up your investment and hold strategy:

Have a mix in your portfolio of properties which are bought for their rental returns, others for capital gains over a longer period of time whist others should be purchased with a window to sell in a couple of years and reinvest.

Contact one of our agents today who can guide you and help you reassess your portfolio or begin building one.

A Guide on How to get a UK Mortgage as an International Client

Securing a mortgage for a property in the UK from abroad can be tough without the right partner to guide you. There are a lot more hoops to jump through for non-UK residents.

Here we take a look at how to get a UK mortgage from abroad.

Can I get a mortgage in the UK if I live overseas?

Yes! However, this depends on your personal circumstances.

Financing from a UK lender, is the most common method if you lived in the UK, is not so simple for an international buyer.

The checks that UK banks use to guage your eligibility are usually not set up to accommodate those looking for an international UK mortgage.

Therefore, to cater to international buyers, some lenders and international banks specialise in international UK mortgages. The process is also much more straightforward for the investor. 

What type of mortgage options do I have?

For residential properties, the two most common mortgages available to international buyers are Buy-To-Let and Residential mortgages.  

Buy-to-let

Buy-to-let mortgages are for those looking at property as an investment.

Simply put, it allows you to take advantage of the current rental market and sell later down the line if prices continue to go up. It also gives you the option to have a place to live should you move to the UK at a later date.

Unlike a Residential mortgage, Buy-to-Let allows the rental payments of the property to pay for the mortgage cost. The balance will earn you an additional income.

Buy-to-Let mortgages require a higher deposit than a regular mortgage. The deposit depends on the lender and can range from 25% – 35%, or even higher in some cases.

Residential mortgages

These are your regular mortgages if you are looking to buy a house to live in.

Residential mortgages are regulated by the Financial Conduct Authority (FCA) which can be tough for international buyers .The options are more limited as not every lender will offer this to international buyers.

However, international buyers can still secure a residential mortgage. Working with an experienced and specialized professional who has a wide network of lenders will help you get you the best product.

Lastly

Speaking with an experienced mortgage advisor ensures you can get the best deal for your circumstances and makes the process a lot smoother. 

At One UK Properties, our agents will put you in touch with our Mortgage partners. With their knowledge and lender connections you are sure to get impartial advice and secure a suitable mortgage.

A Guide to Buying Residential Property in the UK

As international buyers, it is very important to understand the procedure as it is quite different from the very simple process that exists in this region. As the UK has a very long history, the laws have been created over hundreds of years and the property buying process has been streamlined in order to ensure safety for both buyer and seller which ultimately makes the UK one of the most stable and secure property markets in the world.

1. Choose the property.

With the help of your agent, narrow down your search and select the development and unit of your choice. Your agent who knows the market thoroughly will advise on what offer to put forward and help with the negotiations.

2. Make sure your finances are in order

Let your agent know if you will be procuring a mortgage on the property or whether this is a cash buy. Ask your agent to give you an estimated costing of the transaction so you have all the figures with you.

3. Reservation

Sign the reservation form and pay the reservation fees to the developer.

4. Conveyancing process

Instruct a Conveyancing Solicitor from the recommended panel or use your own if you already have one to represent you in the transaction. The seller will have their own solicitor.

Your solicitor will conduct Anti- Money Laundering checks by requesting certified copies of your passport, proof of address and bank statement from which you will be sending funds for the property purchase. They will also advise you of the costs and Stamp Duty associated with the transaction.

They will liaise with the seller solicitors and conduct searches on the property.

Once the contracts are reviewed, they send them across to you for signing and at this point you will pay the deposit into their escrow account.

This is known as the ‘Exchange of Contracts’.

This process takes approximately 2-4 weeks from reservation.

5. Ready or Offplan property

Now, if it is a ready property, the solicitors will then go through the completion documents and will require you to send the balance funds (or your bank in the case of a mortgage). This is known as the ‘ Completion of Purchase’.

If it is offplan property , then you will continue stage payments through your solicitor.

Upon completion of the purchase, the buyer must pay the stamp duty land registration tax to the government. This is calculated on a tier system by the solicitor and is dependant on your circumstances.

6. Title Deed

The solicitor then applies for your title deed. As the UK is paperless, they issue electronic title deeds and the duration to receive your title deed is anywhere between 1-6 months.

Why Using a Real Estate Agent to Buy a Property will get You the Best Deal.

A Real Estate agent guides you through the property buying process, from the initial search to the closing. 

The main things an agent will help and guide with are as follows:

  1. Find you property for sale. An agent will help you understand the type of property to suit your need in the current market, find properties that match your requirement and price range, and then help you narrow the search to a small shortlist of properties worth considering. Additionally, the agent will dig up any additional information on properties that you find on portals and forward to them. With access to internal realtor systems, agents can see more information than you can using real estate websites.
  2. Know the area thoroughly inside out. If you’re an international investor, an agent can provide you with indepth information on schools, neighbourhoods and more. They are able to provide you with details about taxes and zoning that you might not know about.
  3. Set up virtual and on-site tours. Scrolling through an endless number of  pictures on listing portals and shortlisting just isn’t the same as viewing a property in person or virtually. Your agent will work to schedule showings for you after shortlisting so you have the best experience.
  4. Help you put forward offers. After you’ve found a property you want to buy, the next step is to make an offer. Your agent will advise you on how much to offer based on an analysis of the market and on the property itself. A great agent will explain the buying process, answer your questions and walk you through each step of the process.
  5. Negotiate with the vendor. The agent will inform you of the vendor’s response to your offer and advise you on whether to accept the counteroffer or negotiate on price and terms.
  6. Refer you to other professionals on their panel. A good agent will  refer you to other professionals, such as property lawyers, property management and lettings partners and furniture providers. 
  7. Finally, a good agent will help you deal with the highs and lows of the buying process. In addition to being emotional, buying a property is a major financial transaction. If you’re feeling overwhelmed or frustrated, you can always speak to your agent who will pacify you and help you get the best possible outcome.

At One UK Properties, we offer a custom-tailored end to end service from the first step to the full property handover. We work methodically in a streamlined manner with our clients and pursue the most suitable investment option for you, guiding you every step of the way. You will benefit from our specially chosen portfolio which includes both buy to let and end user UK properties. Our extensive property portfolio is developed through our strong relationship ties with UK’s most reliable developers.

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