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SpendingAspire
Posts: 15 Forumite
Does anyone have any experience of the particular issues faced by an American buying a house in the UK with cash, either from the UK logistical side or the tax implications faced as an American citizen?
My wife and I are considering investing in a property to be lived in by our daughter but have no experience purchasing property overseas. I've read up on the stamp duty, the need to obtain a solicitor ect. but have found very little information for those wishing also facing the need to transact money internationally to make the purchase and deal with unique bureaucracy.
If anyone has experience or know of any online resources of particular note, I'd be very appreciative.
My wife and I are considering investing in a property to be lived in by our daughter but have no experience purchasing property overseas. I've read up on the stamp duty, the need to obtain a solicitor ect. but have found very little information for those wishing also facing the need to transact money internationally to make the purchase and deal with unique bureaucracy.
If anyone has experience or know of any online resources of particular note, I'd be very appreciative.
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Comments
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A few things which can cause a disproportionate amount of hassle, so discuss these with your solicitor very early on...
- ID checking by your solicitor - it seems difficult to get acceptable certified copies of your ID, if you're outside the UK. So ideally do this whilst you're in the UK.
- Anti Money Laundering regulations mean that the solicitor will need to check the source of the purchase money (to make sure it hasn't been obtained dishonestly). So be prepared to provide a paper trail.
- Power of Attorney - if you're not going to be in the UK during the purchase process, maybe give your solicitor PoA to sign documents on your behalf
And look out for the idiosyncrasies of UK property.
I know of one American who was very confused when told his property had a peppercorn ground rent.
He imagined having to post a peppercorn in an envelope each year, and being sued in court if he forgot.0 -
This is a fantastic reply! Many thanks0
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SpendingAspire wrote: »This is a fantastic reply! Many thanks
Which reminds me. The exchange of contracts is months, not when the seller and buyers agree on a price and sign a contract right away.
Real estate taxes are low so if your itemizing you will be well below the 10K cap. Although I think the Dems were getting rid of it.
It's also expensive to convert dollars to pounds.0 -
You should use a specialist currency transfer service to change USD into GBP rather than a bank, as banks offer very poor exchange rates. I had an excellent experience with OFX but there are plenty of others.
What is the purpose of the property? You'll need to think about where you are tax resident, and if you are UK tax resident, about the fact that you'll potentially have to file tax returns in both the UK and the US.0 -
The worst thing I have ever seen on Reality TV was a solicitor from Liverpool say on the day of exchanging contracts knock 7K off the price or he's walking.
Try the vendor asking for another £10k+ on the eve of exchange...
https://forums.moneysavingexpert.com/showthread.php?t=54127810 -
Which part of the UK are you looking to buy in? The process is quite different in Scotland.0
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Is that all...?
Try the vendor asking for another £10k+ on the eve of exchange...
https://forums.moneysavingexpert.com/showthread.php?t=5412781
AdrianC, thank you for the extremely entertaining link . That thread is up there with the 'Tesco bag for life' thread and the one from the very on the ball lady whose seller pulled out after exchange. Loved it!0 -
SpendingAspire wrote: »Does anyone have any experience of the particular issues faced by an American buying a house in the UK with cash, either from the UK logistical side or the tax implications faced as an American citizen?
My wife and I are considering investing in a property to be lived in by our daughter but have no experience purchasing property overseas. I've read up on the stamp duty, the need to obtain a solicitor ect. but have found very little information for those wishing also facing the need to transact money internationally to make the purchase and deal with unique bureaucracy.
If anyone has experience or know of any online resources of particular note, I'd be very appreciative.
Gotta love how anything that dares to be done differently from the way Americans do it has to be "unique". How many other countries' property buying and selling laws have you researched, OP? Do you think everyone does things the way you Yanks do except for we contrary Brits?0 -
Gotta love how anything that dares to be done differently from the way Americans do it has to be "unique". How many other countries' property buying and selling laws have you researched, OP? Do you think everyone does things the way you Yanks do except for we contrary Brits?
I assumed the OP meant bureaucracy uniquely faced by foreigners buying in the UK, though as explained above there isn't really any of that.0 -
Gotta love how anything that dares to be done differently from the way Americans do it has to be "unique". How many other countries' property buying and selling laws have you researched, OP? Do you think everyone does things the way you Yanks do except for we contrary Brits?
I assumed they where referring to the "unique" bureacracy involved in buying a house specifically in relation to the UK. Its not like buying a house in france, nor is it like buying a house in America. They all have their own unique bureaucratic process y'see.
Dont be so tetchy.0
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