Buying and renting property in the UK: cost, taxes, mortgages

Great Britain is the oldest European state with a rich history, amazing culture and a special aristocratic spirit.

Which side of the UK is closer to you - colorful Scotland, the heritage of the Celts and the virgin nature of Wales, the pulse of lively London, or maybe Irish pubs

Real estate prices in different parts of the UK vary greatly. In London, its suburbs and South East England, a square meter costs an order of magnitude higher than in the rest of the country.

In North West England and Scotland, prices are relatively low (4 times lower than in London).

Rent per month in London

• Apartment (1 bedroom) in the city center 2 302 €

• Apartment (1 bedroom) outside the center 1 636 €
• Apartment (3 bedrooms) in the city center 4 085 €
• Apartment (3 bedrooms) outside the center 2 776 €

Real estate value

• Price per square meter for buying an apartment in the city center €13,586
• Price per square meter when buying an apartment outside the center 8 293

Utilities (monthly)

Basic (Electricity, Heating, Cooling, Water, Garbage collection) for an apartment 85m2 301.10 €

Rent Per Month in Glasgow

• Apartment (1 bedroom) in City Center €889

• Apartment (1 bedroom) Outside of Center 702 €
• Apartment (3 bedrooms) in City Center €1,578
• Apartment (3 bedrooms) Outside of Center €1,145

Buy Apartment Price

• Price per Square Meter to Buy Apartment in City Center €4,985

• Price per Square Meter to Buy Apartment Outside of Center €2,421

Utilities (Monthly)

Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment 233 €

No, buying real estate in the country does not involve obtaining a residence permit.

But a residence permit can also be obtained through other types of investments.

The UK issued a residence permit for investments in the country's economy in the amount of two million pounds. At the moment, the residence permit program for investment is suspended.

The decision to close the program was made by the country's Ministry of the Interior on February 17, 2022.

Stamp Duty Land Tax (SDLT)

Stamp duty applies to any investment in commercial and residential real estate. Since the end of 2014, the following stamp duty system has been in force:

• 0% if the purchase was made in the amount of up to 125 thousand pounds

• 2% on purchases of £125,000-250,000
• 5% on purchases in the amount of 250-925 thousand pounds
• 10% on purchases of £925k - £1.5m
• 12% - more than 1.5 million pounds

With regard to commercial real estate, land, forests, when buying up to 125 thousand pounds, stamp duty is also not charged. If the property costs 125-250 thousand, then the tax will be 1%, 150-500 thousand - 3%, more than 500 thousand - 4%,

Important! If you purchase 6 or more residential properties, then the same tax scale applies to the purchase as for commercial property. There is a significant benefit to this if you are considering a large investment.

Two increases can be added to the base rate if you:

• UK non-resident: +2%
• this is not your only home (own any property anywhere in the world): +3%

Other taxes

• 0.1% of the value of the object fee for registration of the transaction and the object in the Land Registry
• 0.5% notary fees
• 40-750 pounds depending on the value of the object - tax on the change of ownership (Land Registry Fees)
• 200 pounds - municipal fees
• 1.5-4% - realtor services
• Council Tax - a municipal tax, the amount of which (700-2500 pounds per year) depends on the area

The country's legislation does not restrict the rights of foreigners to buy property in the UK, and non-residents have the opportunity to apply for a mortgage loan on almost the same terms as citizens of the country.

• The maximum loan amount of the value of the object is 75–85%
• Fixed mortgage rates - from 1.95 to 3.50%
• Loan term 5-20 years
• The minimum age of the borrower is 21 years
• The maximum age of the borrower at the end of the loan term is 65-70 years.