UK PROPERTIES FAQS

Q: Why should I buy UK property in the current uncertain Brexit environment?

Brexit, the process by which the UK is withdrawing from the European Union (EU), has caused uncertainty in the UK economy. One of its effects has been a dearth of buyers resulting in drop in house prices across the UK and in particular London, in some areas by as much as 20%. This is the opportunity. Buying now allows you to secure properties at much lower prices before house prices stabilize again after the Brexit process is completed.

Q: Why should I entrust my UK property purchase to you?

We have been operating in the UK for over twenty five years and consider ourselves experts in the UK market. We are able to provide you with numerous recommendations from existing and past clients who are/have been very satisfied with our services. Let us hold your hand and help make what could be a complex, time consuming and/or frustrating process a very transparent, pleasant and profitable one. Ours is a one stop shop to save you the stress of hopping from one estate agent to another, in different locations. We would ‘’source what you want’’ as against the local agents who would ‘’sell you what they have on their books’’.

Q: I can’t pay all cash for a property. Are there avenues for financing?

Yes. We can introduce you to banks who could grant you a mortgage subject to you satisfying their lending criteria(s). Typically such lenders will advance you a maximum mortgage of 60% of the value of the property with you needing to come up with a 40% deposit. We would work with you through the entire process until you get approved.

Q: How do you guarantee the safety of my 40% mortgage deposit?

Your purchase deposit funds will need to be transferred by you or your Nigerian bank directly to the appointed UK solicitors acting on your behalf on the purchase of the UK property. These solicitors are regulated by the Law Society in the UK.

Q: I am wary of buying an investment property in case I can’t find a tenant and it ends up costing me money to keep.

We provide a guaranteed rent service where we pay you the rent whether or not the property is tenanted. This highly successful service which we have been running for almost a decade sees us source quality tenants or enter into tenancy agreements with UK corporate bodies who we offer your property to. These agreements result in you having an unbroken legally binding guaranteed income of between three to five years where the competitive rent is paid into your bank account allowing you to plan effectively on your investment without worrying about voids.

Q:  Based in Nigeria, I am unable to deal with UK property repairs, service charge payments, ground rents and any other Landlord bills and I am aware that missing these can lead to expensive charges, court cases, costs and possibly even repossession proceedings.

We provide you with a 24 hours 7 days a week complete property management service. This way we take the weight off you and deal with all matters to do with your property. We arrange for bills such as the above to be sent to you in our care upon which we will email you a copy of the bill for your information and instructions. We then vet the bills to ensure they are correct, pay the bills on your behalf and deduct the payment gradually from your rent or via any other repayment method agreed with you.

Q How do I receive my rental income?

Your net rental income will be paid directly into your designated UK bank account within seven days of receipt of the rent from your tenant. The net amount will be after the deduction of our 10% full property management fee. A monthly detailed rent statement will be emailed to you.

Q: Do I have to pay tax on income received from UK property? 

The short answer is “Yes” though it is possible to receive rental in the UK and still not be liable for any tax payments.

It has been the case for a long while that all non UK resident landlords must pay tax on their UK rental income. With Brexit approaching and a drive by the UK to realise as much internal income as possible, the UK tax authorities, HMRC, are cracking down on landlords who do not pay their due tax. Levies, fines and court prosecutions are not uncommon so it is not advisable to rent out UK property without paying tax.

Registering to pay UK tax need not be cumbersome. As accredited members of the HMRC Non Resident Landlord Scheme, the first step is for us to get you, the landlord, registered with the HMRC as a Non Resident Landlord, which then allows you to receive your whole rental income without the automatic tax deductions by any estate agent.

We are also HMRC registered tax agents and work with our contracted accountants to ensure that tax computations are carried out on your rental income as they do for those of all our other landlords. Our accountants ensure that any UK tax allowances for which you are entitled are utilised where possible so as to reduce and in many cases wipe out any tax liability. Once computations are completed, we submit your mandatory yearly tax returns to the HMRC on your behalf.

We are also able to manage the process of registering Landlords who have properties in the UK but have not registered in the past with the HMRC for tax purposes.

Q: Can I take out money from a property with equity in it?

Yes. This can be done via a financing process called a remortgage if you already have a lender or by getting a first mortgage if the property currently has no borrowing on it. This process allows you to hold on to a property whilst cashing out some of the equity in it.

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