Many Indians in recent years have started investing in a second home overseas, and London is a favourite destination. While buying a house in London does not promise residency, real estate in the British capital is an established avenue for steady returns.
Why are Indians buying houses in London?
In recent years, many Indian investors have started picking up property in London because of the convenience and price-competitiveness it offers. Primarily, London houses are being purchased by the rich who already have property in India and want to reallocate their investments. It is also easier than ever because of the price appreciation of property in India and the ease of buying property in the UK. Some people of course take the migration route to live and work in the city before investing in property there with long-term prospects in mind. “Moving to London with a child and a career is challenging to say the least, having left behind one's support system and having to learn the rules of an alien environment. However, if this can be managed, it largely is a boon for the child, whose education here progresses naturally. So, by the time University admissions come around, they are naturalised and ready for higher education, instead of preparing for a whole gamut of additional entrance exams like SATs, IELTS, TOEFL,” Sulagna Roy, a London resident who relocated 15 years ago from India, told Business Today.
Does property buying ensure UK residency?
No, buying property in the UK does not ensure UK residency. If it is residency you are looking for, there are multiple other ways to apply for UK residency visa.
READ More: How to apply for UK Residency Visa
Buying a property in London or anywhere else in the UK does not ensure residency. “While a lot of Indians do get entrepreneurial visa in the United Kingdom, residency is not automatically ensured when one buys a property there. So, people can secure the property if they have children going to University and planning to work there. Also, it makes sense for many wealthy Indians to buy property in London and its suburbs because of the wealth potential of the city. An investment in London gives high returns eventually and also it means one is investing in a high-value currency to secure their investments in the future as compared to the value of the Indian rupee,” Dheeraj Sood, Founder, Asquire Global Financial Solutions, told Business Today.
How much does it cost to buy a house in London?
Like anywhere else, the location determines the price of property in London. Locations closer to the central hubs of the city are likely to be more expensive than other destinations. The entry price of London property is around Rs 7 crore for a two-bedroom apartment. However, in comparison with the Indian property market, London property is not exorbitant. In fact, some properties in London can be less expensive than those in New Delhi’s posh residential areas and certainly those in Mumbai.
What are the great places to stay in London?
According to real estate agents, the more popular residential hubs of London are Camden, Islington, Barnet, Enfield, Croydon, Battersea, Kensington and Chelsea, Newham and Redbridge. “Apart from the existing popular hubs of London, the other areas which are popular among investors looking for houses in the United Kingdom are Birmingham and Manchester,” says Sood, who helps Indians make investments globally and facilitates property purchases in the UK as well. “The popular destinations these days are Richmond, Whitechapel and Battersea,” Sood adds.
What are the steps involved in picking up a London property?
“It is not complicated at all,” says Sood. “You will need to hire a lawyer in the UK and give him power of attorney to sign your papers. Once the property is chosen, you can transfer the funds and the paperwork will be executed by the lawyer. You don’t need to be physically present to get the deal executed.”
You get both freehold and leasehold property in London. The leasehold property can have a lock-in period from anything between 40 years and 999 years depending on the nature of your investment.
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