Frequently Asked Questions
You can use this guide to familiarize yourself with rules, laws and other important information relating to your property.
In England, buying and selling transactions are legally conducted through solicitors. The solicitor checks the legal status of the property, ensures payments are made securely, and protects your interests. The buyer and seller must each be represented by separate solicitors. All money transfers must also be made through solicitors.
Stamp Duty is a tax payable on property purchases in England. This tax is paid at the Completion stage of the purchase process, i.e. when you take possession of your home. It is calculated by your solicitor and transferred to the tax office through your solicitor.
The amount of Stamp Duty is not fixed; there is a calculation method that varies depending on whether the person purchasing the property resides in the UK, whether the property is their first home, and whether it will be rented out. Your solicitor will perform this calculation, inform you of the amount, and manage the payment process. This ensures that legal obligations are fulfilled and the transaction is completed securely.
Rental management and maintenance services are critical to the sustainability of your investment. Furthermore, having the property professionally managed in accordance with the country’s legal requirements eliminates legal risks and preserves the value of your investment.
In the UK, all payments for property purchases are sent to your solicitor’s escrow (client) account as required by law. Your solicitor completes the transaction by transferring this amount to the seller’s solicitor’s client account. This method protects the buyer.
Additionally, the following systems and safeguards are used to ensure the security of payments:
• Stakeholder System: Payments exceeding 10% are held in the seller’s solicitor’s account and are not transferred to the firm until Completion.
• Deposit Guarantee Insurance: Insures your entire deposit.
• NHBC, LABC, ICW Memberships: Your investment is secured through the structural and financial guarantees offered by construction firms.
It is usually sent electronically by the HM Land Registry within 1 or 1.5 years of purchase.
The main costs you will encounter when purchasing property in the UK are as follows:
• Solicitor’s Fees: The fee for the solicitor who will handle the purchase process and represent you legally.
• Stamp Duty: Paid at completion and calculated based on the property’s value and the buyer’s circumstances.
In addition, buyers do not pay estate agent commission in the UK. Estate agent commission is charged solely to the seller. This is a significant advantage for buyers, unlike the practice in Turkey.
No, purchasing property in the UK does not grant you any visa privileges. This purchase does not entitle you to a residence permit, work permit or tourist visa. Property investment is purely a financial transaction and is not linked to the UK’s immigration or visa policies.
There are three main types of title deeds in the UK: Freehold, Leasehold and Peppercorn Leasehold.
Freehold: Covers ownership of both the land and the structure on it. The vast majority of detached houses have this type of title deed.
Leasehold: Covers ownership of the flat only; the land on which the flat is located is leased for a specific period. While this period was typically 50–60 years in the past, longer lease terms are now preferred.
Peppercorn Leasehold: This is a new type of title introduced by regulations that came into force in 2022. With a 999-year lease term and no land rent, this model is the most advantageous among Leasehold titles and the most preferred by investors.
Short-term leasehold titles (e.g. 50–60 years) significantly reduce the value of the property and make it difficult to sell. As the lease term decreases, the market value of the property declines, and the use of mortgages and resale opportunities are also restricted. Therefore, when investing, it is critically important to prefer properties with the longest possible lease term.
Property purchase in the UK takes place in two main stages: Exchange and Completion.
• Exchange Stage: At this stage, the sale contracts are signed between the buyer and seller, and typically a 10% deposit of the property price is paid. Once Exchange is complete, the buyer cannot withdraw from the purchase; they are legally committed to taking possession of the property.
• Completion Stage: This is the day the property is handed over. At this stage, the remaining balance of the property price and the purchase tax, known as Stamp Duty, are paid. Payment is made through your solicitor, and ownership is formally transferred to the buyer. After completion, your solicitor will send you the official documents certifying that ownership has been transferred to you.
These two stages are the most critical points in the property purchase process in England, and it is a legal requirement that each step be carried out through a solicitor.
The main regular expenses you may encounter after becoming a property owner in the UK are as follows:
Service Charge: This is paid for the maintenance and services of communal areas within the block of flats or estate.
Lettings Agency Fee: If you let your property through an estate agency, you will pay a commission for the lettings service.
In addition to these:
Property Tax: There is no property tax in the traditional sense in the UK.
Council Tax: This tax is paid by the person actually residing in the property. If the property is rented out, it is paid by the tenant.
Rental Income Tax: You must declare the rental income you receive from the property. Rental income up to £12,570 per year is tax-free; income above this threshold is subject to income tax.
Yes, individuals who are not resident in the UK, live in Turkey, and earn their income in Turkey can also purchase property in the UK using a mortgage. These individuals can purchase property using a mortgage. However, this process involves more complex and restrictive conditions compared to those for resident individuals. Generally, higher down payments (25–50%) and interest rates apply. In addition, income documents, credit history and financial stability are examined in detail during the application process.
No, you do not need to travel to the UK to purchase property there. All procedures are conducted remotely and contracts are signed online. The original documents are sent to your solicitor. You do not need a visa or even a passport to purchase residential property in the UK. You can complete all procedures using only your Turkish identity card. This makes the investment process both easy and fast.