UK Mortgage For US Citizens Buying Property In London

10-October-2018
10-October-2018 9:42
in General
by Jennifer Stevenson

Americans love London. History, culture, food, language, service almost up to US standards, and a great place to live.

Americans love London despite the fact that it’s not a bargain property destination and no-one likes to be sold a plumped-up duck – but least of all smart-with-their-money Americans.

Americans love London because the greenback is solid against the pound, and housing back in New York now costs on average 18% more than in London (more expensive than London for the first time in 15 years).

And in New York, you're "less likely to get any outside space for your money," SpareRoom reports. Only 31% of New York renters have outdoor space, compared to 70% in London.

You can enjoy your iconic balcony view of the Thames from one of the classy new riverside developments springing up around the capital.

There’s less chance of being pushed out to an apartment overlooking the carpark now that British and European investors are hanging back because of the effect of increasing Brexit uncertainty on their spending-power.

London mortgage for US citizen

Six months ago London was one of the biggest movers downwards in the Economist Intelligence Unit world rankings.

And that has encouraged US investors to head across the pond and find the UK lenders who are willing to work within the fairly arduous requirements of the US tax-hunting law FATCA (the 2010 Foreign Account Tax Compliance Act) in order to give them mortgage funding.

Getting support from a buyer's agent

Americans are often surprised to discover that it’s not common practice to engage a buyer’s agent to act for you in the UK, setting up appointments to view, negotiating on your behalf with the seller’s realtor, and usually having the jump on newest properties onto the market.

It’s a service that really only got going in the UK just over a decade ago, but there are now experienced buyers’ agents available – many of them with a background in US realty.

And help to find the finance

There is well-qualified and regulated professional support available to help you find finance for a UK property purchase. And most US buyers find this pretty much an essential service.  

High-street British banks have largely stepped back from selling mortgages to property buyers with “U.S. person-status”, as federal law chooses to call Americans whose overseas holdings they want to keep track of.

A handful of private banks and lenders are prepared to take on the additional administrative and regulatory work that’s required.

But unless you want to do a lot of legwork tracking down the lenders who are ready to work with your particular criteria, you’ll need the help of an experienced broker.

And a good tax adviser will help you minimise the tax burden of property ownership in two countries, to make the transaction most cost-effective.

Contact Clifton Private Finance to discuss the funding you need

+44 203 900 4322

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