Purchasing London property from overseas is a well-established process, but it requires careful preparation and the right professional team. This guide walks through the journey from defining your objectives to completion and letting.
Step 1: Define your objectives
Be clear about the primary purpose — income, capital preservation, own or family use, or a mix — because it determines location, price point and property type. Income-focused buyers often look at outer London, where yields tend to be higher; buyers prioritising a central base usually accept lower yields.
Step 2: Budget and finance
Most international buyers purchase in cash. UK mortgages are available to non-residents through specialist lenders, typically with larger deposits and more documentation. Budget for SDLT, legal fees and running costs as well as the price.
Stamp Duty Land Tax (SDLT) for residential purchases in England is charged in bands: 0% up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above (rates in force from 1 April 2025). Buyers who already own residential property anywhere in the world usually pay a 5% higher-rates surcharge on top, and non-UK residents pay a further 2% surcharge. As an illustration, a non-resident who already owns property elsewhere would pay roughly £80,000 on a £750,000 purchase. Your solicitor confirms the exact figure — and rates can change at any Budget.
Step 3: Appoint a UK solicitor
A UK solicitor handles the legal work: anti-money-laundering and source-of-funds checks, contract and lease review, searches and title registration. Choose one experienced with overseas clients. CM2 can make introductions; the choice is yours.
Step 4: Reservation and exchange
For new-build purchases, a reservation fee secures a specific unit for a set period. Your solicitor then reviews the contract pack. At exchange — the point the contract becomes binding — a deposit is paid, commonly around 10% for London new-build, though terms vary by developer and should be confirmed.
Step 5: Completion
On completion you pay the balance and become the legal owner; the solicitor pays SDLT and registers the title at HM Land Registry. For off-plan purchases, completion follows practical completion of the building, which can move.
Step 6: Letting and management
If you intend to let, appoint a letting and management agent experienced with overseas landlords, and understand the current regulation — including the Renters' Rights Act — and the Non-Resident Landlord Scheme.
CM2 operates on the buyer side while receiving compensation from participating developer partners, including Aldar Properties and London Square. Buyers are not charged a fee by CM2. This article is general information, not legal, tax or financial advice. Figures may be indicative, availability can change and projected yields are not guaranteed.
Request a private consultation to discuss your objectives.