Owning a Property Abroad
It doesn’t stop you buying in the UK generally, but it can stop you qualifying for Shared Ownership.
For most Shared Ownership schemes in England, the starting position is simple: you’re expected to be a non-homeowner at the point you complete, which usually means you cannot own another residential property in the UK or abroad.
The key test is what you own on completion day
If you still own the property abroad when you complete, many housing associations will say you’re not eligible.
Some providers will consider applications where you already own but are in the process of selling and will have disposed of that property before completion. Whether that’s acceptable depends on the provider’s policy and how far along the sale is.
Income caps and affordability still apply
Eligibility is also driven by affordability and household income. In England, the scheme criteria include:
- household income of £80,000 or less (or £90,000 or less in London)
- being unable to afford a suitable home on the open market
On top of that, the housing association will assess whether the monthly costs are realistic once you include mortgage, rent on the unsold share, and service charges.
Mortgage lenders will ask about the overseas property
Even if a housing association is comfortable, the lender still needs to be.
Owning a property abroad can affect a lender’s view of:
- your overall commitments (especially if there’s a mortgage on that property)
- how sustainable the full monthly costs are
- deposit source and exchange-rate exposure (where relevant)
It’s not always a deal-breaker, but it’s something you’ll need to disclose and evidence.
Stamp duty and “first-time buyer” status
Two points catch people out here.
First-time buyer relief: HMRC’s definition of a first-time buyer is strict. If you have previously owned a major interest in a dwelling anywhere in the world, you won’t qualify for first-time buyer relief.
Higher rates on additional properties: If buying in the UK means you’ll own more than one home at the end of the day, you’ll usually face the higher SDLT rates on additional properties.
A solicitor can confirm the stamp duty position based on the timing of any sale overseas.
What I’d do next
- Speak to the housing association first and ask the direct question: “Do you require me to have sold the overseas property before completion?”
- Then speak to a broker. Shared Ownership is already specialist. Add overseas property ownership, and it’s worth getting a clear steer on lender appetite before you spend time on applications.
Please call 023 8235 2300 and one of our consultants will then be able to advise you on your situation.
