The Full Cost of Buying UK Property From Abroad: Beyond Stamp Duty

The Short Answer

Beyond the purchase price and stamp duty, an overseas buyer of UK property should budget for legal and conveyancing fees, searches, a survey where appropriate, mortgage fees if borrowing, and the running costs of ownership. Stamp duty for overseas buyers includes a surcharge, and rates change, so check HMRC before you commit.

The Costs, in the Order You Meet Them

• Reservation fee. Common on new-build purchases. Ask in writing whether it is refundable and on what terms.
• Solicitor or conveyancer. Fees plus disbursements. Overseas buyers often need extra identity and source-of-funds checks.
• Searches. Local authority, environmental and water searches, which your conveyancer arranges. See our guide to UK property searches.
• Stamp Duty Land Tax (SDLT). Includes a surcharge for non-UK residents. Our stamp duty guide for overseas buyers and the worked buy-to-let examples show how it is applied. Confirm current rates on GOV.UK.
• Survey. Optional on some purchases but sensible on older properties.
• Mortgage costs. Arrangement and valuation fees if you borrow.
• Land Registry fee. Charged to register you as the owner.

Costs After You Own

• Leasehold charges. Service charge and ground rent on flats. Read the lease and the latest accounts. See our leasehold reform guide.
• Letting costs. Agent fees, insurance, repairs and periods without a tenant.
• Landlord tax. Non-resident landlords have their own scheme. See our non-resident landlord scheme guide.
• Currency. If you fund the purchase from another currency, exchange rates change the real cost.

How to Build Your Budget

• Write down the purchase price and the deposit.
• Add each cost above, using written quotes where you can.
• Add a margin for costs you cannot yet quote.
• Run the figures at a weaker exchange rate than today's.

Why Choose Banke UK?

Banke helps overseas buyers see the full cost of a UK purchase before they commit, and points to HMRC, your conveyancer and your tax adviser for the specifics. To discuss a purchase, contact the Banke UK team.

Conclusion

The price on the listing is the start of the budget. Itemise every cost, check tax rates on GOV.UK on the day, and keep a margin.

Note: GOV.UK, HMRC and Bank of England pages could not be reached when this was written, so no rate is quoted here. Rules, fees and thresholds change, and this article is general information, not legal, tax or financial advice. Confirm current details with the relevant authority and a qualified professional before you commit money. Property returns are examples, not promises, and property values can fall as well as rise.