mrkjd

My wife is in a UK rental property and we want to buy a place in her name. I work as a consultant overseas in O&G

Her conveyancer has demanded to know where the funds are from as we (she) is a cash buyer. They are not satisfied with me telling them they are from my earnings working 20 years overseas and that fact seems to have stirred them into a frenzy of suspicion! I understand it's all money laundering stuff but FFS how do expats buy homes in the UK these days? There must be literally thousands of Jonny-foreigners paying cash for homes from savings from their tuk-tuk business in Delhi or computer shop in Shanghi!

Pulaski

"Telling" them is not enough, you need to be able to provide documents to support your story. For example several years of bank statements showing progressive accumulation of funds such that it is plausible that you accumulated the account bakance over the period you say you've been saving. Ideally a complete account transaction history showing the build-up of the current balance would likely resolve most of the issues over the source of the funds in the account.

Perhaps you have bonus payments that make a substantial part of the balance - do you have, or can you obtain documentation of the bonuses?

Can you get some sort of "letter of good standing" from the bank where you accumulated your savings?

Sabi Star

Are conveyancing solicitors really like this now? It's difficult enough without being regarded as a criminal (if one is not). Perhaps change your conveyancing person? Is he a solicitor or just a conveyancer? I think they only need reasonable proof of source of funds.I bought a lease extension not long ago through a solicitor. I can only remember hum asking for a tax number.

Millsyisland

I had a similar issue last year through purchasing a house in the UK with a large cash deposit. We simply provided, as Pulaski mentions, bank statements from our savings account (the source of the deposit) showing the build-up of the funds from the outset. This seemed to satisfy them, although if your funds have accumulated over a longer period (you mention 20 years), this may not be possible.

flood2

I bought a house in the UK earlier this year.

I just supplied 12 months worth of bank statements showing recent money trail and that was all they needed. It is purely to stop money laundering and is a legal requirement.

nottmbantam

We were in the process of buying a Buy to Let property. Once the Estate Agents knew we were cash buyers, all they asked for was a copy of bank statement showing the funds were available. Didn't have to provide proof of earnings or any of that. Even the solicitors were quite easy going about the whole thing.

AS it happens, once we had the survey done, it revealed much further work needed, so we cancelled the purchase. Up until then, it was all pretty plain sailing.

IKnowNothing

Buy it through an off-shore company (mine's in Belize), no questions asked.

Sabi Star

I think there are extra taxes now on residential properties held in on or off shore companies which are quite penalizing.

mission

usually you would only need to supply your bank statement with the balance covering the amount you will be spending on the purchase.
I know when I was looking to buy a property out here and the bank required the 25% down payment, all they wanted to see was a copy of the bank statement showing the balance the deposit would be taken from.

Millhouse

not great for those holding them personally either these days.

Meow

It is usual practice to have to produce evidence of the funds to be used for house purchase. A bank statement is usually sufficient.

There are additional restrictions for overseas buyers but it's not overly complex. We deal with mortgages for expats every day.

The stamp duty rules changed in April of this year. More info here: https://financialuae.me/2015/11/26/u...ts-for-expats/

sicklyman

bought two properties with literally screenshots of my online account as proof of funds. No problem at all.

mrkjd

A mixed bag of experiences there. My impression is that some solicitors are more "vigorous" than others though all have to go thru the motions. We have dropped that particular conveyancer for a proper high-street solicitor and they have said they are happy with what I have given them and can proceed. It seemed whatever we gave the last tosser just required opened up another can of worms!

We did consider DIY conveyancing - how does due diligence work then?

Also considered buying using my UAE company - but really - does it need to come to that just so I can smoke my pipe and watch it pissing down outside in my dotage!

Frankly

iggle

Whats the potential tax you'll get hit on here

Top of my head
Rent
Stamp
Property
Living aboard tax?
Council

Pulaski

If you buy a home and rent it out, the council tax is paid by the tenant, so you'll either pay tax on "rent", or "council tax", not both.

Stamp duty you pay just once, at the point of purchase.

"Property", and "Living abroad tax" are not real taxes.

I am not sure if there is a "top of my head" tax.