Understanding If You Live Abroad but Want to Buy UK Property

As a UK citizen living abroad, you still have various options for purchasing property in the UK. 

Here are some key considerations and options to explore: 

1. Buy-to-Let investment - one option is to purchase property in the UK as a buy-to-let investment. This involves buying a property with the intention of renting it out to tenants to generate rental income. Buy-to-let properties can be an attractive investment opportunity, particularly in areas with high rental demand and potential for capital appreciation  
2. Holiday home - if you're looking for a property for personal use during visits to the UK, you could consider buying a holiday home. This could be a second home where you can stay during holidays or vacations, or you could rent it out as a holiday let when you're not using it to generate additional income  
3. Future retirement home - purchasing a property in the UK now with the intention of using it as your retirement home in the future is another option to consider. This allows you to secure a property in advance and potentially benefit from any appreciation in property values over time  
4. Family home for relatives - you may choose to purchase a property in the UK for family members or relatives who reside there. This could include buying a property for children attending university, elderly parents, or other family members who need housing in the UK  
5. Property development - if you have experience or interest in property development, you could explore opportunities to invest in property development projects in the UK. This could involve purchasing land for development, renovating existing properties, or investing in new construction projects  
6. Residential property investment - you could invest in residential properties in the UK with the aim of generating rental income and potential capital appreciation. This could involve purchasing single-family homes, apartments, or multi-unit properties for rental purposes  
7. Legal and financial considerations - it's important to consider the legal and financial implications of buying property in the UK while living abroad. You'll need to comply with UK property laws, tax regulations, and financial requirements for non-resident property owners. It's advisable to seek professional advice from solicitors, tax advisors, and financial experts to ensure compliance and optimise your investment strategy  
8. Property management - if you're investing in rental properties, you'll need to consider how you'll manage the properties from abroad. This could involve hiring a property management company to handle tenant screening, rent collection, property maintenance, and other administrative tasks on your behalf  

Depending on if you already have a mortgage in the UK or are looking to purchase a new property will affect your options. 

New Property 

If you are an expat looking to return to the UK and buy a property, this is most certainly feasible, but as always will depend on your personal circumstances and meeting the lender's criteria. 

You need to see whether lenders are comfortable with the size of your mortgage whilst you are out of the country and what you intend to use the property for – either to live in or as a buy-to-let (BTL) whilst you’re abroad. 

As far as the residential mortgage is concerned some lenders will have a problem with you not currently being in the country.  A few will be afraid that you don't intend to return to the property and are just looking for a cheap BTL rate, others will not be able to carry out credit searches and will feel uncomfortable making a decision without this information.  Fortunately, there are more enlightened lenders who will look at your current circumstances, future employment in the UK, the property being offered as security and be able to make a decision based on sound underwriting. 

Existing Property 

If you already own property in the UK but are looking to raise capital from them, you will most likely require a buy-to-let mortgage either through an onshore or offshore lender. If you are not intending to return to the UK anytime soon, it will more likely be an offshore lender. All the main UK banks have operations in either the Isle of Man or the Channel Islands and will typically lend up to 70% of the property value. 

Expat mortgages can be complicated with the declaration of funds, documents declaring identification, and general documentation needed for lender’s criteria. So, depending on where you are currently living, this will have an impact on declaring affordability. Often, we have a high number of Australian expat mortgage applications, Under Australian law banks need a credit licence to grant finance to anyone resident in Australia. As only a couple of banks in the UK have this licence or are willing to overlook it's requirements, your choice of lenders is very restricted – so it’s always important to speak to a mortgage broker that can really help you find the advice you need. 

Overall, buying property in the UK as a UK citizen living abroad offers various investment and lifestyle opportunities. It's essential to carefully consider your objectives, conduct thorough research, and seek expert advice to make informed decisions and navigate the property purchase process successfully. 

You can talk to our team about your requirements on 0330 433 2927.