The acquisition and subsequent disposal of British property for citizens of the country and foreigners is not fundamentally different. Both pay the same taxes on real estate, as well as on income received from renting or selling it.
Differences may arise depending on whether you are a tax resident of Britain and whether you live in the country permanently. Read about tax rates and payment features, utility bills, the nuances of renting and selling real estate, and living expenses in our article.
When buying an apartment in Britain, it is important to remember that in most cases you are buying the property itself, but not the land on which it is built. Therefore, even if you bought an expensive penthouse, most likely you will receive it on a “long-term lease” – leasehold. The term of such a “rent” is 100-150 years, although recently there have been options for 999 years. Such “leased” real estate can be inherited, and the contract after the end can be extended for an additional fee.
The nuance of ownership in the form of leasehold is the mandatory monthly deductions (service charge), which go towards the repair of the entire house and the surrounding area, as well as the rent for the land.
The second option for buying an apartment is share of freehold, when the owner receives ownership not only of the property itself, but also of part of the land underneath it. Unfortunately, this type is rare and mainly applies to small houses that were once divided into apartments.