United Kingdom, which has a cosmopolitan structure in industry, trade and education, is also home to the world’s most important property market. Owning real estate in the UK, especially in London, is both a very profitable investment and an indicator of prestige. For this reason, investors, famous artists and athletes from all over the world primarily prefer the UK to invest in real estate. In fact, the houses that celebrities buy in the UK from time to time can be the subject of the news.

The increase in property and rental prices in most cities of the country and especially in London, one of the most popular cities in the world, the profit rates it offers to the investor and the rental income in foreign currency, on the other hand, the financing solutions offered during the property purchase, the tax reductions applied by the government, make real estate investment very attractive.

Contrary to popular belief, owning a property in the UK is also possible for mid-budget investors. With the budgets that can be bought in Istanbul, you can easily own a property in the UK. Only 10% down payment, low interest rates (although there has been an increase in recent months) allow you to own a house as if you were paying rent. Please contact our experts for the things you need to know and pay attention to in order to make a profitable property investment in the UK. The Piccadilly Estates team consists of a team that has experience in many property consultancy firms, and they also have a medium-sized portfolio.

The main factor determining the price of a property in the UK is neither its size nor its comfort. The main factor that
determines the price of a property is its location. Today, the price of a three-room duplex house in the north is half as much as a property with the same conditions in the south. The price index is also usually determined according to the geographical regions of the country. We recommend England and Wales in the UK for investment purchases. Although the prices vary according to the location, location and project, if your aim is to make a profitable property investment; When you decide to sell, you should invest in one or two bedroom flats in the £350k to £2M range, where buyers show the greatest interest. These properties, which are in
higher demand from buyers, also have higher rental yields than others.

First of all, you should choose the location where you will buy a property in accordance with your investment purpose. Do you want to buy a property to live in or to rent and earn? Have a child going to college? Or are you planning to buy a property where your children will live in the future? The criteria you will pay attention to when buying property will also vary according to your purpose. If you are going to buy a property to live in, you should choose between the properties that fit your budget in the potential living areas you have determined. If you are planning to buy and rent a property for investment purposes, of course, you have to calculate the return of this property to you.

It is important in terms of potential value increase that the property you will buy is in or near the urban transformation area. It is a factor taken into consideration for property investors, as governments restructure the regions included in the urban transformation in the UK by providing transportation alternatives, additional job opportunities and social opportunities to support potential population growth.

If you live abroad, you should prefer to buy a property from newly built buildings while investing in real estate in the UK. 20% of the UK property stock was built more than a century ago and 30% is between 50 and 100 years old. In this case, the operating expenses of more than 50% of the buildings, high energy savings, and the need for excessive repairs are the items that should definitely be taken into account when buying a property, since the service sector in the country is expensive. It is much more advantageous for investors to prefer new properties because the potential costs of old buildings are unpredictable and new homes are more in demand when selling and renting. However, the prices of old properties are slightly lower than new buildings.

On the other hand, in line with the Government’s net zero emissions targets by 2050, from 2025 all new rental properties will need to have an EPC (energy performance certification) rating of Band C or higher.(https://www.howellsllp.com/new-epc-regulations-from-2025-for-landlords/) In order to sell or rent a house in the UK, it must legally have an EPC. The energy efficiency of a property is determined on the A-G scale. The most efficient houses start from the A band and are ranked towards the least efficient houses in the G band. These new rules will affect homeowners financially as raising the minimum EPC rating from “E” to “C” will require extra investment investment in older properties.

It is possible for foreigners to buy a property in the UK regardless of their residence permit.

Investing in property in the UK does not grant you citizenship or residency. But in your other visa processes, showing that you have invested can provide you with advantages related to this process.

If you are an investor abroad, you do not need to come to the UK to buy or sell real estate. All the official documents you need to sign are sent to the address you want, as all buying and selling transactions are done through lawyers. Your purchase or sale transaction is completed with the documents you have filled out and signed completely. You do not need to be a British citizen or have a residence permit in the UK to buy a property in the UK. The same is true for renting.

With Piccadilly Estates’ Turkish-speaking expert team, we support you throughout the entire purchase and rental process.
With the Turkish-speaking lawyers, accountants and mortgage consultants we can recommend to you, you can carry out the whole process comfortably and successfully without the need to speak English. In addition, our law firm with which we are a business partner in Turkiye will also support you. What are Leasehold and Freehold?

There are two different ownership rights for properties in the UK:

1. Freehold property: The title deed of detached houses in England is called “freehold” deed. It has the same characteristics as the title deed known in Turkiye. Freehold properties, which means the ownership of the land and the structure on it, are entirely owned by the owner, there is no time limit and no limit. Most single-family homes in the UK are acquired as freehold.

2. Leasehold property: Leasehold is another option that can be preferred when purchasing a property in England. Leasehold properties are also the property of the buyer, but ownership of the land belongs to the land owner. Leasehold right is regulated as zero land rent for all new houses with the The Leasehold Reform – Ground Rent- Act 2022, which came into effect in June 2022. https://commonslibrary.parliament.uk/leasehold-reform-in-england-and-wales/ In practice, the period of use in Leasehold properties can be extended by application. In new development projects, this period is already long. When buying a second-hand apartment, it is necessary to pay attention to the lease period. If the term is less than 80 years, it can cause problems in getting the mortgage loan approved. For this reason, it would be correct to extend the lease term when it falls below 100 years. Lease period can be extended for a certain fee. The vast majority of flats in the UK are held in as Leasehold. For these and similar reasons, it is important for the investor to work with experts from the beginning to the end of the real estate purchase process and to get the support of a law firm.

The steps that can be followed to buy a property in the UK are outlined in the relevant section (link). You can also find detailed information in our step-by-step buying guide (pdf link).

As Piccadilly Estates, we do not take commissions from our customers on project sales. Our commission is paid by the construction company. The biggest expense item in property purchases is the stamp duty, known as the Stamp Duty Land Tax, whose rates are determined by the UK government. You can calculate the approximate amount of tax you will pay on our website (link). Your lawyer will calculate the actual amount upon detailed inquiry.

There are 3 taxes that must be paid when buying property in the UK. In the first place is Stamp Duty. In addition, foreign buyers residing in another country have a 2% tax to be paid. Also, if you own property anywhere in the world (not necessarily in the UK, the same applies if you own property in the country where you live) you will have to pay an additional 3% tax on the price of the property you are buying in the UK.

If you are buying a residential property or piece of land in the UK or Northern Ireland you must pay the Stamp Duty Land Tax (SDLT) if your purchase is over the £250,000 threshold. Those not eligible for the first-time buyer’s discount must pay Stamp Duty for residences costing more than £250,000.

As part of the discount offered to first-time home buyers in the UK (residence in or outside the UK), no tax is payable on sales up to £425,000 on the house price, and 5% tax is payable on sales from £425.001 to £625,000. If you have owned a residence before, you will pay an additional 3% stamp duty on these rates when purchasing property. The Stamp Duty rate paid varies depending on where you buy property in the UK.

There are several rate bands for Stamp Duty. The tax is calculated on each band of the property’s purchase price. For example; When you buy a £295,000 home in October 2022, the SDLT you have to pay is 0 for the first £250,000 and a total of £2,250 with a
5% tax rate for the remaining £45,000.

SDLT rates
Up to £250,000                0%
£250,001- £925,000     5%
£925,001 – £1.5m           10%
Over £1.5m                         12%

You can easily calculate the approximate Stamp Duty amount from our tax calculator (link). Please refer to this calculation as an approximate value. Your solicitor will calculate the actual amount by detailed inquiry.

In the UK, rental income up to £12,500 per person per year is not subject to income tax. However, any income over £12,500 per year is taxable at 20%. If your income is more than £12,570, 20% income tax is payable on up to £50,270 of income. If you buy a joint property with your spouse or sibling, the first £25,140 (£12,570 per person) is exempt from income tax. For example; If your total rental income from your investments is £25,000 and your net rental income minus £5,000 dues and other expenses is £20,000. In this case, the remaining £7,500 will be taxed over £12,500. The total tax you have to pay is £1,500, 20% of £7,500.

The tax on money earned in England is paid to England. Tax can be paid by obtaining a tax number and filing an annual tax return. If a person is required to pay income tax, they must first register with HMRC, then obtain a Non-Resident Landlord Scheme (NRLS) or tax number. After all these processes, it pays income tax by filing annual tax returns. In the purchase of property through the LTD company, the annual income tax to be paid is 20% of the earnings. However, income tax varies between 20% and 50% for individuals.

It is likely that the person will pay taxes according to their residence status and conditions. We refer you to experts in this regard. In addition, when buying property, it will be in your best interest to make your choice according to your purpose of use.

Yes, you get title to every property you buy in the UK.

Owning a property in the UK is easier than in Turkiye, thanks to the mortgage opportunities. Many people who want to own a property in the UK prefer to pay their mortgage installments rather than paying rent. Since home loans are very long-term
loans, they are almost the same as paying rent. If you meet the mortgage terms of financial firms, you can take advantage of mortgages for investment properties. With nearly 20 years of investment banking experience, Piccadilly Estates founders can introduce you to advisors or investment banks that offer loan options from £100,000 to £20,000,000. Options range from small banks to private banks such as UBS, Credit Suisse, Coutts. Your ability to get a loan and the amount of the loan will be related to your income- expenditure, your credit score, the properties of the property and the credit criteria that banks look at. Piccadilly Estates does not provide a service beyond introduction and does not charge any fee from the parties for this introduction. You can contact us about this.

The UK banking system is one of the oldest using mortgage lending. One of the various products created by British banks and lenders in mortgage applications is the ‘overseas mortgage’ product package given to non-UK residents (Non UK Residence). In the evaluation of overseas mortgage applications, the financial strength of the person in his/her own country and the
general situation of the country are taken into consideration. An applicant, who is a citizen of the Republic of Turkey, can get a home loan under the ‘overseas mortgage’ in the UK. However, in order to do this, it will have to accept an application process that will convince the creditors with high income sources from which it is clear. This mortgage is usually given for residences to be rented. Institutions such as UBS, which provides private banking services, can also offer mortgages for properties that you can use for your residence, with different criteria. Most organizations expect your annual earnings (gross) to be around £25,000.

Any citizen of a country residing and working outside the UK (for example, Turkey) can also get a ‘Buy to Let’ loan in the UK. You do not need to be a resident of the UK for this. Banks can lend you up to 75% of the real estate you buy, depending on your rental income and interest. In this way, while some of your rental income is paying off your mortgage, it may also leave you some income -although it varies according to current interest/market rates-. In principle, banks look at your rental yield to be at least 1.2-1.4 times the mortgage interest (according to market conditions) and determine the minimum deposit you have to make accordingly.

It depends on your medium and long term goals. In fact, your net income from your investment is as much about the structure you set up and your exit plan as the property you buy. With our experienced Piccadilly Estates team, which has been serving in the UK property market for many years, we help you to create the most suitable purchase method for you. Unlike a property company that only focuses on buying and selling, we explain the options to you and help you see your options from the outset by getting you in touch with the right tax advisor/accountant and solicitors early in the buying process.

If the property you buy on behalf of your company is for investment purposes, you can deduct the interest amounts you paid to the bank from income tax as an expense. However, if taken as an individual, the interest amounts paid are not deducted as expenses. If you are going to reside in the property you bought, there will be no change in your favor between buying the
property through a person or a company. Reusing the income from property for reinvestment (by paying only corporate tax), the option to transfer your shares on sale, and creating advantages such as stamp duty are a few points to consider. Contact us for details.

You can work with your own solicitor, but your solicitor must be an expert in property exchanges in the UK and be part of a UK based firm. Because the buying and selling procedures of each country are different.

The first of the other costs to be paid will be solicitor fees. Because in the UK, working with a solicitor is mandatory for all property transactions. You can contact the Piccadilly Estates team about how much your expenses will cost.

The laws in England require that the title deed delivery and transfer transactions be made by the buyer and seller solicitors. Fees for these transactions range from £1500 to £4,000 on average.

Banks determine the mortgage lending limit according to the valuation price of the property. The price valuation fee is charged
for the price valuation service performed by the bank from which you use the loan. The fee varies depending on the price and location of the property, but ranges from £150 to £1,500. Some banks may not charge you this fee depending on the type of loan you will use.

The property to be purchased in the UK are subjected to a technical measurement process in which subjects such as technical, architectural, housing and plan notes are investigated in detail. Issues detected in these measurements are notified to the buyer. Thus, the buyer will be aware of the problems that have occurred or will occur regarding the property. The fee varies according to the scope of the transaction. General technical metrics start at an average of £250. Detailed technical measurements start at £600. Since a detailed technical measurement reveals the problems beforehand, it is profitable for the investor in the long run.

It is the fee of the service provided by the experienced property investment experts and consultants for the buyer to purchase the targeted real estate at the most affordable price. This fee is only requested from the buyer. The commission amount may vary depending on the price of the property to be purchased. Piccadilly Estates offers a limited consultancy service package for 2-3 months for its clients with special requests. This fee is not charged for purchases from new home projects.

When buying a house, you should also consider other costs such as building fees and choose places where the operating cost is low. In the UK, unlike Turkiye, if the property is rented out, the landlord pays the service fee.

Property management is the entirety of services that cover the processes such as issuing rental notices of the property you have purchased, finding a tenant, checking the credit of the prospective tenant, preparing and signing the contract with the tenant, and ensuring that the communication with the tenant is carried out smoothly. As Piccadilly Estates, we provide services with our expert staff for these transactions. Contact us for our price list. Can my child live in the property I bought? If you bought your property in cash or with a residential mortgage, your child can live. However, if you bought it using a Mortgage (buy-to-let mortgage) purchased for rental purposes, it cannot be settled. Because your bank has made you use the loan for your rental income.

Yes, in the UK dues and renovation costs are the responsibility of the landlord. You can also benefit from various insurance options such as property insurance, white goods insurance, electricity/water etc. insurance. You can contact Piccadilly Estates team for the most accurate insurance options.

It is sufficient to open a sterling account in a bank where you have an account in Turkiye. If necessary, we can offer you different alternatives for opening an account in the UK.

No, residing in the Turkish Republic of Northern Cyprus does not require a different procedure.

One of the most important stages of the property purchase process in the UK is questioning the source of the money you set aside for the purchase. In accordance with the Money Laundering policy implemented by the United Kingdom, the source of your savings and income that you will use in the purchase must be shown. There are two stages here; authentication and documentation of the source of money.

– What are the documents required for identity verification?
The following documents will be requested from you for the identity verification process in the buying and selling process in the UK.
• Passport copy: Passport copy is required for identity verification. It is important that you have the photocopy of your passport approved by a solicitor/notary in Turkiye.
• An invoice received in your name within the last 3 months: The reason for requesting this invoice is address verification. Copies of electricity, water, natural gas and home phone bills are usually requested. If there is no invoice registered in your name, the residence document you will receive via e-government may also be valid. However,the company that you will buy or sell may
request an invoice by not accepting the residence document.
• Last 3-6 months banking account activities: You can receive your bank account and account activities as PDF documents via online banking.
– What are the documents required to determine the source of income?

• If you are a salaried employee in a workplace; You will be asked for your last 6-month payrolls from your company, the statements of the accounts they entered, and bank statements showing your savings.
• If you are a partner/owner of the company; You need to show company information, position/partnership in the company, your accounting and bank account movements, bank statements (salary, dividend, etc.).
• If you have another income or if the money you will use for the property you will receive is from a property sale,
documents related to it: Documentation of your income related to your second job, if you have income from a property/car sale your trade’s document, and title deed transfer/sales transactions.
• If you have rental income; Account statements of these payments (usually starts with the last 6 months) – What are the documents required to purchase real estate with the donated money?
• Official document from solicitor/certified that the donor has given you money to buy a property.
• Documents showing the source of the donor’s money (If he is a salaried employee at a workplace, payslips for the last 6 months, or if there is income from the sale of property, documents regarding the title deed transfer/sale transactions.)
• Documents identifying the donor’s affiliation with you. (If you are a business partner, the document showing your partnership. If you are a family member, a sample of the population registration you will receive via e-government.)
• Bank account statement of the donor for the last 12 months.