Property in United Kingdom

English house values have fallen by more than 20% since their peak in August 2007, yet prices are still comparatively high on average. This combined with limited mortgage availability has made it difficult for 1st time buyers to get onto the British property ladder. As a result prices are expected to remain relatively stagnant over the next few years; however rental rates are predicted to soar. As the United Kingdom moves away from a nation of owners to a country of tenants, the opportunity with UK property investment lies with strong rental returns rather than capital appreciation.

UK Real Estate for Sale

Real Estate in the United Kingdom for Overseas Investors

Until recently, the shortage of affordable UK properties made entrance into one of Europe’s priciest markets exceptionally difficult for first time buyers from overseas seeking to finance their purchase. With the decline in gross mortgage in FY2011, says the Council of Mortgage Lenders (CML) prospects are better than ever. The CML estimates are based on a representative sample of UK lenders holding loans for about 80% of the mortgage market. The volume figures are a boon for expatriate and investor property consumers, as a broader range of property segments on the market offers opportunities such as ‘buy -to-let’ options previously unheard of in Britain’s capital cities and popular holiday destinations.

Buy to Let Mortgages provide overseas consumers a sleek approach to investing in higher cost or multiple properties, designed for investors whom are interested in the benefit of tenant rental income for loan pay off, maintenance expenses and of course capital growth. Under the UK’s Shorthold Tenancy Act, special schemes are offered to expatriate buyers, UK residents and foreign nationals for personal or commercial letting use. Up to 100% of the financing on cross-collaterising investment mortgages may be attribute to purchases across several or more properties or assets. This includes collateral such as International Bank Guarantees, Investment Portfolios and Offshore Bonds.

Unlike bank loans which are sometimes difficult for foreign investors to attain in the UK buy to let mortgages are unregulated by the national Financial Services Authority (FSA) where not stated as ‘primary residence’ in application. Rate indexes on buy to let loans are generally available at a mere 1.5% – 3% above UK base rate or Libor rate, with outstanding loan to values up to 75% and terms of interest up to 25 years. Currency exchange according to home income rate is also available as part of the pay-off option. Whether a small apartment or a large country estate, the UK is nothing short of accommodation in property investment.

* The currency guide rates used for illustration purposes on this page are EUR1.15 = GBP1, USD1.6 = GBP1, AED5.6 = GBP1, BBD3.18846 = GBP1. Page Generated on February 21, 2012, 10:50 am.