Buying property in UK from Aus

[Zpack]

Hi all,

Sorry if this has been asked before but I couldn’t find a similar thread.

We’ve been in Australia for 10 years, moving back to the UK this year. DH will transfer back with the same company.

We’d like to buy a house before we get back, we need an address for school applications but also renting seems so much more expensive than mortgage repayments. I’d also like to minimise upheaval for the DCs by avoiding lots of moving around.

Any advice on how we would go about getting a mortgage while overseas, but ultimately planning to head back? Has anyone done the same thing?

I would suggest consulting a mortgage advisor/broker. Will help that he is staying with the same company.

Why in earth are you moving back to the U.K...must be mad😆😆

@MarieG10 have you read the other thread about Australia? The Aussies are also asking why anyone would want to move to Oz right now. Hey at least we have toilet paper!

Hi @Zpack. As PP suggested, mortgage broker would be your best bet. Mortgages for non-residents are available but trickier to navigate. HSBC is one provider you might try directly.

One other thing to be aware of is that the UK property market is pretty hot and you may need someone "on the ground" in order to be taken seriously by agents, more so if not a cash buyer. My SIL kindly did the viewings and acted as a point of contact with the estate agents, which helped a lot. You also need a solicitor lined up so you don't have a delay between offer accepted and starting the conveyancing that might give the seller cold feet.

Also be aware that non-residents now pay a 2% stamp duty supplement vs being a resident when you buy.

Thanks for the advice! Ha @MarieG10 that’s a question I ask myself at 2am most nights, but all our family is in the UK and the DCs are growing up fast.

Thanks @PrisonerofZeroCovid we’ve booked in a chat with a broker in the UK. I’ve noticed that the market is pretty hot, we’ve got family near our search area but they’re quite busy with work etc. I also didn’t knew that about stamp duty! We’ll see how the discussion goes, we might just have to bite the bullet and rent first if it opens up more mortgage options to actually be in the UK.

@camperqueen54 very true! I paid crazy money for a pack of 12 rolls at EzyMart, all the supermarkets are wiped out again! Also went into the local chemist and enquired how much for a lateral flow test…. $22 each (£11) nice.

There are property search companies who will take a lot of the looking off your shoulders but if I am honest I would choose the school / area and secure a rental. Yes it might well be more expensive than mortgage in the short term but gets you in the area and then you can look at houses for yourself. & then the getting a mortgage is easier - as @PrisonerofZeroCovid

If one of you can come over and whizz round and find a house and stick an offer in then just the mortgage thing to sort. If you are doing everything remotely then the last thing - if it were me - I would want - is to end up in a house I realised wasn't great. Moving twice ( by which I mean purchases ) will be more expensive than buying the house you really like

I do understand your point about DCs and disruption but we rented for a while in between buying houses - DS seems fine - hasn't traumatised him at all.

I do not mean to be trite but re the renting vs mortgage thing I would say don't spoil the ship for a ha'porth of tar - but just my opinion , other opinions are available

But all best to you whatever you do & I hope it all works out well for you and your family

Best Wishes Basilisk.

We are in the same boat moving from NZ to U.K. but we are cash buyers however the stamp duty thing is a pain!! Once you have lived the U.K. for six months you can claim the non resident surcharge back but you will not get a refund on the regular stamp duty.

We are going to rent for a bit to make sure we like the areas and check out the neighbours. I wouldn't advise buying a house without seeing it. If you hate it and have to sell/buy again that's another $$$$$ in stamp duty! Good luck

Can your family help with accommodation while you are house hunting and mortgage.
You don't give any information on budget or professions so it's a wide question.
In my gut you need to be back first hand sorting it out.

• and working out your options

Thanks @BasiliskStare @mooselooseaboothoose and @Monty27 ! We have spent a few days looking at schools and catchments (they really are tiny) and have come to the same conclusion. We're now scouring for rentals close to the school we are hoping to get 2 of the DCs into. Limiting ourselves to buying in catchment areas was making for crazy prices. We have family that could do viewings but it would be the source of many arguments if they picked a lemon on our behalf!

Good luck with the move @mooselooseaboothoose I am expecting a period of culture shock when we get back, hopefully it will be short lived.

@mooselooseaboothoose I didn't know you could claim the non-resident surcharge back if you move back. DO you know what the time limit is on that- ie. do you need to move back within that tax year?

@PrisonerofZeroCovid once you have been in the country for 183 days in a continuous 365 day period you can claim it back - this includes time you spend in the country before purchase.you have to apply for the refund within 2 years of transaction. So you can go on holiday for 2
Weeks and you don't have to restart the 183 days for example

@PrisonerofZeroCovid are you a prisoner in NZ like me?!

Zpack just be aware that having an address isn't necessarily enough for school (in year) applications. We were asked for flight tickets to prove we had actually returned to the UK, and had to start within 3 weeks or risk loosing the place.

You should be able to get an expat mortgage, but they are £££, with a higher interest rate. You may not actually be worse off renting in terms of cash.

@Zpack I have had two sets of friends return from Aus in the last 5 years. Both families bitterly regretted it. The schooling experience and change wasn't great. One is actively looking to return and the other is considering it after Xmas discussions.

Think carefully

@mooselooseaboothoose

No- the other place. Hong Kong

Thx re the stamp duty. Worth knowing.

We’re doing this move but from the US this summer and the whole decision over house and school is overwhelming and so difficult!!! We’ve opted to rent to basically have distance to a school as our major factor, if we rent then the house doesn’t need to be perfect and we have time to then look around properly ourselves for somewhere to buy

One thing I’ve been warned is expats in particular should expect to pay up to 6 months rent up front. And the rental market seems more dismal than the selling one! I think we’re going to engage the services of a property searcher to help

HSBC expat was our only option for a remortgage whilst living abroad. No other uk banks would touch us as non-residents, despite good credit / high salaries.

We tried to do this from America and it was a bit of a nightmare. I would wait until you are in the UK if you can. Also, you would be buying blind if you can't get family to view it

You can reclaim the additional stamp duty if you meet the criteria
www.gov.uk/guidance/apply-for-a-repayment-of-the-non-uk-resident-stamp-duty-land-tax-surcharge

[quote MarieG10]@Zpack I have had two sets of friends return from Aus in the last 5 years. Both families bitterly regretted it. The schooling experience and change wasn't great. One is actively looking to return and the other is considering it after Xmas discussions.

Think carefully [/quote]

I agree with this posters schooling concerns.

My dc were so far behind, at least a year, when we returned from Australia after almost a decade. We had to get a tutor to get them up to speed with their uk counterparts. And I'm a teacher so I wasn't exactly slacking on their educational needs either and they were both really successful at their school in Melbourne. It was a bit of a shock for them I have to say. But despite this they settled in beautifully.

Thanks everyone for the advice. I am quite worried about the schooling situation but I am hoping that after an initial period of upheaval things will work out. DD is 16 and in a selective stream here in Australia, they are working her hard but she will start an IB when we get home (in place of A levels) and I wonder how she will cope as I've heard the workload is fierce. She has started her HSC here this year so is getting used to starting school earlier and leaving later for extension subjects. We'll see.

I am most worried about DS1, he is in year 8 here and has multiple SEN. We will make a request for an EHCP assessment before we get back, but by age he should go up into year 10 in the UK in September. DS2 is in year 4 here and will go into year 5 in the UK. He still hasn't mastered a good pen grip, there is no concern about it here! I am paying through the nose for OT and an assessment, in the back of mind are all the UK kids already writing in cursive!

We've organised a rental in the UK now, which is close to schools so we can at least start the process. Shipping is set to take 6-7 months with covid port congestion so we are debating selling most of what we own.

You won’t be able to apply for an EHCP (or IDP in Wales, CSP in Scotland or Statement of SEN in NI) until you are resident in the LA.

@Imitatingdory I thought I could start the EHC needs assessment process off before we're resident in the LA, ie. week 0 to 6 of the process? I understand we need to be resident at the point that the LA makes their decision about proceeding with an EHCP or not

No, you can’t. The LA doesn’t become responsible for a child until they are resident in the area (s.24 CAFA 2014) so they are not obliged to consider an EHCNA request for someone not residing in the LA. Reg 5(1) SEN Regs 2014 state the LA must notify parents whether they are going to assess with 6 weeks of becoming responsible for the child in accordance with s.24, CAFA 2014. It is similar to moving from one LA to another with an EHCP, the new LA does not take over maintaining the EHCP until the pupil actually moves (or within 15 days after).

Even if the LA did accept a request for an EHCNA, they would be exempt from the timescale of notifying you by week 6 under Reg 5(4)(d) SEN Regs 2014 as you would be away from the LA for 4 consecutive weeks within that time.

@Imitatingdory thanks that’s very helpful, I’ve sent you a message. I hope that’s ok.

Hi

Aussie in London here, I’ve been here for 10 years.

The housing market for houses here is absolutely mental at the moment. Even if you can buy somewhere, the settlement period is now very long, and there is a very high rate of collapse of purchases in London.

If you are looking to buy an apartment which I’m guessing you’re not, it’s a totally different story.

I would honestly remt, depending on where you live you can actually find a cheaper than Mortgage .