The legal aspects & financial attractiveness of real estate in the UK

uk real estateDespite the apparently high costs, the UK property market is one of the most liquid markets in the world. Particularly in London, investing in real estate could be the best antidote to falling prices, a hedge against inflation and obtaining capital gains.

The demand for real estate has always been driven by the UK, first, because of the country’s small territory – only 1,000 miles from north to south and 400 miles from east to west. The growing needs for housing development in population of England must be in permanent balance with the need to preserve the countryside and green parks. Thus, governmental policy promotes substituting industrial areas with green field sites, located outside the city. Depending on the area, where transformations are expected, the grant can be provided to clean the territory. In addition, the environmental concerns contribute to the requirements for its research that is undertaken in respect of history of a particular property, and where the land itself may be dumped. Essentially, the current legislation can be held liable for contamination that occurred many years ago, despite the fact that it became the result of the efforts of the previous owner.

The current economic situation in the world makes the UK real estate market even more attractive. The population of Great Britain has been steadily increasing, while the number of construction of houses and apartments in Britain lags behind the demographic situation. The state of affairs is exacerbated by a shortage of housing against the background of a huge influx of foreign workers: the protracted crisis in conjunction with progressive unemployment drives people to change the residence for more economically prosperous countries in search of work. Thousands of people in London every day are turning to employment agencies in search of housing apartments for rent. In this regard, investment in real estate the UK always bring stable rental income. At the moment conveyance solicitors admit the fact the pricing has reached its historical peak.

Referring to the Land Law of Great Britain (which also regulates the UK real estate market), you will find that the basic concepts here have not changed since the time of William the Conqueror, when in 1066 he laid the foundation of the system, which the country is genuinely proud of, and for the foreigner it is, as a rule, the subject of genuine bewilderment and incomprehension. However, stability of the area is another factor that drives interest to the sector. By law, all land in England and Wales belongs to Her Majesty Queen Elizabeth II, and all the other mortals have only the unconditional right to use of land and buildings located on it. Freehold form of ‘ownership’ is very similar to the international practice concept of tenure, which can be called ‘ownership’ and so, if you own real estate in freehold rights, you become the full owner of real estate buildings located on this land you are free to enroll in any operations with your property, it is only necessary to coordinate your actions with local authorities.

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The ins and outs of UK student real estate market operation

student property UKFor the recent decade the analysts admit the record growth in demand for real estate in major university cities in the UK. A similar trend was triggered by a sharp influx of foreign students who come to England from Asia, Western Europe, Eastern states and the CIS countries. The maximum demand for cost-effective student apartments is observed in the leading university cities, for example, in Oxford, Sheffield, Liverpool, Cambridge, Manchester and many others.

Characteristically, the demand for student property sector in cities such as Liverpool and Manchester exceeded the demand for residential properties in London. This directly affected the intensity of the pace of growth in rental rates, which have increased by 25% over the last year in Liverpool and Manchester. In turn, high yield of student real estate has raised the investment appeal to these objects. Among the factors that increase the volume of foreign investment in student property in England the following ones are listed:

  • Rapid price rise and intense increase in rental rates;
  • High levels of yield. Management companies provide investors with yields of 6%  -9% for property rental;
  • Reduced risks. Investments in real estate are typically the most predictable and transparent types of investments, the yield of which is provided by the stable growth of prices for the rental and sales market;
  • The ability to make the mid and long-term investments. Net profit can form a resale property at higher prices.
  • The ability to transfer the management of real estate companies. Management companies will be looking for creditworthy tenants, transfer of income to the owner, control rooms, etc.;
  • Stable profit at the end of each quarter.

Buying a property outside of the UK

The process of buying property in the UK student admits the absence of a buyer for the country. For the transaction the investor is required translated into English copy of a passport, an additional notarised. It is also required to provide a bank statement certifying the place of residence of the buyer. The first amount of £ 5,000 is transferred either through a bank or paid by card. After that, the transaction involves conveyancing solicitor of the two parties (developer and investor). You may want to check to find a solicitor and get stunning quality legal support to minimise all the risks, as well as guarantee transparency of transactions and their effectiveness.

The costs incurred by the investor when payment for legal services

In England, any type of transaction associated with real estate purchasing is conducted through solicitors. The volume of expenditure will depend on the complexity of the procedure of purchase, however, as a rule, they vary in the range of £1,200 – £1,500, but may go way higher. If the investor conducts several operations to purchase a variety of apartments or in case the customer is looking to acquire a costly premises, then the service is likely to reduce the price for its services. The volume of net income from the rental or resale of student property will depend on the size and successful planning. Then you can see an indication of the annual rental yield of investing in a particular construction project.

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