Buying a house in the UK?

Question

What all questions should i be able to answer when I buy a house in the UK, specifically in London or in any part of Essex? I am working as an Engineer in UAE, born and broughtup in Dubai. I do visit UK occasionally.

I want to know what and how should i invest in the UK house. what are all the things I need to know before hand, any hidden charges, or questions for outsiders which I need to know. when i buy a house in the UK ( on mortgage) can i rent it further? can i visit the UK to check my house when it is still under Mortgage (considering i m still not the complete owner of the house yet!).

Answer 1

Firstly if you are buying the house on mortgage it is considered as yours even though it has not yet been paid for.  You can get mortgages called 'buy to let' which allow you to rent the house out, if you are planning to do this it is best to use a letting agency who will rent the house out for you for a charge.  The hidden costs of buying a house are stamp duty, which is a one off payment to the government of 1 - 3% of the house cost depending on it's value, you will also have to pay solicitors fees for buying the house and doing all the land searches to check that there are no poblems such as new developments being built or a flood risk to the area, and pay a surveyor to check the state of the property and whether it is worth the price being asked for it.  You may also have to pay an arrangement fee for your mortgage depending on what type you get.  Once you own the house the other hidden charges are council tax if you are going to live in the property, if you rent it out the tenants have to pay this.  If you buy a property in a block of flats there might also be maintenence or service charges for the upkeep of communal areas or gardens (the searches will find this out).  Also in the UK the land that the house is built on may be freehold meaning you own the land and the house or leasehold meaning you own the house but someone else owns the land, for leasehold properties you may need to pay the owner of the land a rental fee.

A good financial advisor should be able to advise you about the best route to take and the likely costs.