Catzog Posted November 9, 2016 Share Posted November 9, 2016 Hi I am currently looking at the possibility of purchasing property in the UK to let (as a British expat in Australia). Just wondering if anyone else has done this? I have spoken to the bank and there is a criteria which I meet (e.g minimum 25% deposit, minimum salary, minimum amount in savings etc etc). Were there lots more implications to this? How did you find the whole process of finding and setting up a buy to let mortgage, rates, letting it out with an agent etc. It would be great and really appreciated if you could share your experience, just currently weighing up the possibility. Thanks Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted November 9, 2016 Share Posted November 9, 2016 We are in the process of buying now and will complete in early Dec when we will be over there on holiday. However we do not need a mortgage so cannot help you on that front but you do have to provide proof of where you are getting all your funds from (money Laundering) along with proof of identity and residency address. The house will be vacant possession though there are renters in at present (awaiting completion of their purchase) we will be using the same agent as are used now whom also were the selling agent, I believe that council tax (rates) is also the tenants responsibility but I have still to confirm this. Good luck Keith. Quote Link to comment Share on other sites More sharing options...
Catzog Posted November 9, 2016 Author Share Posted November 9, 2016 Thanks so much Keith! Yes when I was renting in England I had to pay the council tax. I have had money sat in my UK bank account for a while so would be difficult to get proof of where it came from, it is just from savings from income. I am particularly interested in the mortgage process, so if anyone could share their experiences then I would be so grateful. Thanks again Keith and good luck with the house. Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted November 9, 2016 Share Posted November 9, 2016 Thanks so much Keith! Yes when I was renting in England I had to pay the council tax. I have had money sat in my UK bank account for a while so would be difficult to get proof of where it came from, it is just from savings from income. I am particularly interested in the mortgage process, so if anyone could share their experiences then I would be so grateful. Thanks again Keith and good luck with the house. Does not matter that it is sat in the UK bank, that is evidence you can use, just provide a couple or three statements covering a longer period. You may have to provide evidence of any Aussie money you intend to use. Overall it is not a big problem or concern just a lot of faffing around to get there. Quote Link to comment Share on other sites More sharing options...
Ruth7862 Posted November 9, 2016 Share Posted November 9, 2016 My son was in a similar position to you, living permanently in Australia but with savings in the UK for a deposit and wanting to buy an investment property here (UK). The problem was he couldn't get a mortgage in the UK at the time three years ago as all the lenders would only lend to individuals who were permanently resident in the UK at the time of application. We got round this by myself taking out the mortgage and having the house in my name. We then got the solicitor to create a declaration of trust document which states that I hold the property in trust for my son. The British tax office are happy with this and he completes a UK tax return regarding the rental income. It has worked out well for us to the extent that he might buy a second property here next year. He rents in Australia as it suits him to be flexible and he likes that fact I can sort it all out for him, clever lad :-) Quote Link to comment Share on other sites More sharing options...
Ruth7862 Posted November 9, 2016 Share Posted November 9, 2016 You also need to consider the second home stamp duty charge which came in this year. If the person buying the investment property already owners another property it will be charged and I suspect this would be the case even if the person is buying in trust on behalf of an individual that doesn't own another property, but that would need to be checked with the solicitor. Quote Link to comment Share on other sites More sharing options...
rammygirl Posted November 9, 2016 Share Posted November 9, 2016 Yes the second home stamp duty applies even if the first home is in Australia. It can add quite a few grand to the costs too! As usual a regulation set to cool the buy to let market is a sledge hammer and hits people like us who simply want a UK base as well as our Australian home. Possible I guess to transfer the Aus home into my name and get the UK one solely in Hubby's name, haven't looked into it too closely yet. Quote Link to comment Share on other sites More sharing options...
Ruth7862 Posted November 9, 2016 Share Posted November 9, 2016 When you come to sell a second home in the future you can offset the second property stamp duty against any capital gains tax on the profit so not quite as bad as it sounds. Quote Link to comment Share on other sites More sharing options...
Catzog Posted November 11, 2016 Author Share Posted November 11, 2016 Thanks Ruth! The arrangement your son made with you sounds great. Unfortunately we don't have that option. If anyone has any experience with the mortgage process I would really appreciate hearing all of the steps you had to take etc, how you found the whole process etc. Thanks Quote Link to comment Share on other sites More sharing options...
Rallyman Posted November 11, 2016 Share Posted November 11, 2016 We are in the process of buying now and will complete in early Dec when we will be over there on holiday. However we do not need a mortgage so cannot help you on that front but you do have to provide proof of where you are getting all your funds from (money Laundering) along with proof of identity and residency address.The house will be vacant possession though there are renters in at present (awaiting completion of their purchase) we will be using the same agent as are used now whom also were the selling agent, I believe that council tax (rates) is also the tenants responsibility but I have still to confirm this. Good luck Keith. correct on council tax issue ,also you have to declare any U.K. I come on oz tax return Quote Link to comment Share on other sites More sharing options...
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