What is the process of buying a house in the UK? What are the precautions?

The British government does not restrict overseas buyers from buying British real estate, but also allows overseas buyers to borrow money to buy a house in the UK. Property buyers can pay a deposit after choosing a house, and they need to hire a professional lawyer with real estate license. Lawyers will help buyers complete the subsequent purchase process, including: inspecting the property, drafting the contract and confirming the signing time, delivering the property and registering the house. If buyers buy a house with a loan, they need to grasp the time of buying a house.

1. What is the process of buying a house in full in the UK?

With the assistance of lawyers, buyers need to complete four processes: booking houses, looking at houses, signing houses and transferring transactions.

1. Keep the house.

After the house is selected, the buyer pays the down payment to the developer (seller) to make a house reservation. Usually, after signing a formal purchase contract, the deposit will be deducted directly from the house payment. After the buyer chooses a house, he should inform the lawyer. Before the formal signing of the house purchase contract, the lawyer will contact the lawyer of the developer (seller) to obtain relevant information, and conduct an in-depth investigation on the developer (seller) and the property to protect the rights and interests of the buyers.

Official website of the Land Registry of the United Kingdom

British real estate information is public, and lawyers need to check the housing situation on this website. After buying a house in the future, the ownership of the buyer will also be registered on this website.

Check the house

In the process of buying a house in Britain, looking at the house is an indispensable link. Generally, before signing the purchase contract, buyers need to entrust professional institutions or professionals to inspect the house. Home inspector will provide the buyers with the house inspection report after completing the house inspection, including the house quality and real estate appraisal.

Housing inspection generally takes one month, but the specific time will vary according to different housing inspection institutions.

Schematic diagram of housing inspection project

The picture shows the house inspection project. As can be seen from the picture, the inspection involves all aspects of the main body of the house.

Sign a house purchase contract

The purchase contract should generally be completed within 28 days after the buyer pays the deposit. When signing the contract, the buyer shall pay 10% of the total house price? 30% as a down payment.

After confirming that there is no problem between the developer (seller) and the property, the buyer's lawyer will draft the contract with the developer (seller) lawyer and determine the signing date. The buyer's lawyer is obliged to explain the contents of the contract in detail, including the buyer's rights and obligations.

After the buyer confirms that it is correct, he can formally sign the purchase contract, and the lawyers of both parties are responsible for exchanging the contract after signing it. According to English law, once the contract is signed, the buyer is obliged to buy the property.

Model house purchase contract in Britain

The picture shows a screenshot of the model purchase contract publicized by the British legal website LAWDEPOT.

4. Transaction transfer

After the contract is signed, the buyer's lawyer will contact the local land and resources bureau to register the property, handle the property certificate and land certificate, and transfer the ownership of the property to the buyer's name. When handling the delivery of the property, the buyer shall pay the remaining house price, and pay a certain amount of stamp duty, land registration fee and other miscellaneous fees stipulated by law.

British stamp duty collection method

Stamp duty on house purchase in Britain is levied step by step.

Second, the difference between buying a house with a loan and buying a house in full?

In Britain, new houses are generally faster, and lenders can submit loan applications six months before handing over the house; Second-hand houses are existing houses, and there will be bids for the sale of second-hand houses in Britain. The seller is more willing to pay in full, and the loan may be too late. Therefore, if you need a loan to buy a second-hand house, you should be psychologically prepared in advance.

1. What are the conditions for buying a house with a loan in the UK?

Generally/kloc-overseas people who are over 0/8 years old and have enough income and repayment ability can borrow money to buy a house in the UK.

However, each bank has different requirements for the lender's loan amount, loan period and interest rate. For example, the Bank of China (UK Branch) stipulates that applicants can borrow up to 80%, and the loan period is 15? In 30 years, the maximum loan amount is 5 million pounds.

2. How to get a loan in the UK?

(1) Apply for a loan

Lenders need to provide personal assets certificate, income certificate, identity certificate and other relevant documents to the bank. After receiving the information, the bank will make a preliminary evaluation to determine the loan amount of the lender. The initial assessment process will take about a week to complete. If the lender can accept the loan amount and other terms made in the preliminary estimate, it can start to look at and inspect the house.

Requirements of Bank of China (UK Branch) on application materials

Bank of China (UK Branch) requires the lender to provide passport, payroll, tax payment certificate and other materials.

(2) Bank audit

The bank will review the identity, income and repayment ability of the lender, as well as the legality and estimated value of the property. The bank will refer to the real estate appraisal in the house inspection report and the lender's financial situation to determine the final loan amount.

(3) Signing IOUs

After the lender and the bank reach an agreement on the loan amount, loan interest rate and loan term, they can sign a mortgage contract. Thereafter, the lender must repay the loan according to the contract requirements.

Reference of Loan Interest Rate of Bank of China (UK Branch)

The loan amount and proportion are different, and the interest rate is also different. The picture information is a screenshot of 2065438+September 2006.

In Britain, bank loans are paid directly to the lawyer's account of the developer (seller), which is different from domestic banks paying directly to the developer (seller). In practice, the regulations of each bank shall prevail.

3. What are the precautions for buying a house in the UK?

Pay attention to three aspects when buying a house in Britain: house inspection, delivery time and account opening.

1. Is it necessary to inspect the house in Britain?

If you buy a new house, the housing inspection agency has fewer housing inspection items and a light degree. Mainly check whether there are cracks in doors, windows, balconies and other parts, whether the door handle of the house is flexible, and whether the water pipes in the kitchen and bathroom are easy to use. After all, the equipment of the house is new, and there is generally no problem.

But if you buy a second-hand house, you must ask a professional house inspection agency to check it carefully. Including whether the pipeline is unobstructed, whether the main body of the house is moth-eaten, whether the wall is wet, etc. Buyers need to know the structure of the house, including the surface conditions, groundwater and minerals, so as not to affect their future occupancy.

House inspector's working drawing

The picture shows a house inspector in London checking the condition of a second-hand kitchen.

2. How long can I get the key after buying a house?

Most of the new houses in Britain are faster houses, so the delivery time of real estate is longer, usually about one year after signing the contract; The second-hand house is an existing house. After the contract is signed, you can deliver the property and get the key soon.

3. Do I need to open an account in a British bank to buy a house?

If you buy a house in full, you don't need to open an account. If you buy a house with a loan, you need to open an account before signing a contract.

Buyers who plan to borrow money to buy a house in Britain should pay attention to the time when they submit their loan applications. Buyers are advised to confirm their loan eligibility before other transaction processes.

Source: British government official website (GOV.UK) and Bank of China (UK branch).