Ghanaian Buyer’s Guide to London Property

Buying a House in London as a Ghanaian: A Step-by-Step Guide

London is one of the most attractive cities for international property investment, and Ghanaian buyers are increasingly interested in purchasing homes in the UK capital. With its stable real estate market, strong capital appreciation, and opportunities for rental income, London offers a secure way for Ghanaians to diversify their investments. This guide outlines the steps, legal requirements, and tips for Ghanaians looking to buy property in London.

Why Buy Property in London as a Ghanaian?

1. Stable Investment Market

   • London’s property market is known for its stability and resilience, making it an ideal location for long-term investment, especially during economic uncertainty.

2. Capital Growth Potential

   • London properties have a strong track record of capital appreciation, which can result in significant returns over time.

3. Rental Income

   • With high demand for rental properties, especially in areas like Canary Wharf, Shoreditch, and Stratford, investing in buy-to-let properties can generate steady rental income.

4. Diversification of Assets

   • Investing in London real estate provides Ghanaians with a way to diversify their portfolios, reducing exposure to local market risks.

5. Strong Legal Protections

   • The UK’s well-regulated property market ensures that international buyers, including Ghanaians, are protected under UK property laws.

Step-by-Step Guide to Buying Property in London as a Ghanaian

1. Determine Your Budget

• Before starting your property search, establish a clear budget, taking into account property prices, taxes, legal fees, and other costs. Remember that non-resident buyers may need to put down a larger deposit (typically 25-35%).

2. Get a Mortgage (If Needed)

• As a Ghanaian buyer, you can obtain a mortgage from UK banks that offer loans to non-residents. However, requirements may include:
  • Proof of income and financial stability
  • A larger deposit (minimum 25-35%)
  • A good credit history
• Consider working with a UK mortgage broker who can help you find the best rates and terms.

3. Choose the Right Property Type

• London offers a variety of property types, including:
  • Apartments in vibrant areas like Canary Wharf and Shoreditch
  • Victorian houses in leafy neighborhoods like Fulham and Richmond
  • Off-plan developments for those seeking potential capital appreciation

4. Engage a Real Estate Agent

• Partner with a reputable estate agent like Fraser Bond to access exclusive listings and off-market properties. Agents can help you navigate the market and negotiate the best deal.

5. Make an Offer and Hire a Solicitor

• Once you find the property you want, make an offer through your estate agent. After your offer is accepted, hire a UK solicitor to handle the conveyancing process, including:
  • Reviewing contracts
  • Conducting property searches
  • Ensuring compliance with UK property laws

6. Pay the Deposit and Secure Financing

• Upon exchange of contracts, you’ll need to pay a 10% deposit. If you’re using a mortgage, ensure all loan agreements are in place.

7. Complete the Purchase

• On completion day, the remaining balance is paid, and you receive the keys to your new property. Your solicitor will handle the registration with the HM Land Registry.

Legal and Tax Considerations for Ghanaians Buying Property in London

1. Stamp Duty Land Tax (SDLT)

   • Non-resident buyers are subject to Stamp Duty Land Tax (SDLT), with an additional 2% surcharge on top of standard rates. The tax rates depend on the property price.

2. Capital Gains Tax (CGT)

   • If you sell your property at a profit, you may be liable for Capital Gains Tax on the gains. Non-residents must report the sale to HMRC within 60 days.

3. Inheritance Tax (IHT)

   • UK properties owned by non-residents may be subject to inheritance tax upon death. It’s advisable to seek tax planning advice.

4. Legal Fees

   • Budget for legal fees, typically around 1-2% of the property’s purchase price, to cover conveyancing and other legal processes.

Top London Areas for Ghanaian Property Buyers

1. Canary Wharf

   • A financial district with modern apartments and excellent amenities, ideal for buy-to-let investments targeting young professionals.

2. Stratford

   • Home to the Queen Elizabeth Olympic Park and Westfield Shopping Centre, Stratford is a popular area for families and investors.

3. Battersea & Nine Elms

   • Major regeneration projects and riverside developments make this area attractive for long-term capital appreciation.

4. Kensington & Chelsea

   • For high-end buyers seeking luxury properties, these areas offer prime real estate with strong capital growth.

5. Ealing & Acton

   • Ideal for families and investors looking for buy-to-let opportunities, with excellent schools and access to the Elizabeth Line (Crossrail).

Frequently Asked Questions (FAQs)

1. Can Ghanaians buy property in London?
Yes, Ghanaians can buy freehold and leasehold properties in London with no restrictions on foreign ownership.

2. How much deposit is required for Ghanaians buying property in London?
Non-resident buyers typically need a 25-35% deposit when obtaining a mortgage.

3. Can I rent out my property while living in Ghana?
Yes, you can rent out your property. It’s advisable to hire a property management company to handle tenant relations, rent collection, and maintenance.

4. Are there any tax implications for Ghanaians buying property in London?
Yes, non-residents are subject to Stamp Duty, Capital Gains Tax, and potentially Inheritance Tax. Consulting a tax advisor can help you navigate these obligations.

How Fraser Bond Can Assist Ghanaian Buyers

At Fraser Bond, we offer tailored property investment services for Ghanaian buyers:

1. Exclusive Property Listings: Access to off-market properties in London’s prime areas.
2. Expert Investment Advice: Personalized guidance on choosing the best areas and property types to maximize your returns.
3. Full Property Management: From tenant sourcing to rent collection, we manage your investment to ensure a hassle-free experience.
4. Legal and Financial Support: Assistance with navigating UK property laws, securing mortgages, and handling tax obligations.

Conclusion

Buying a house in London is a great investment for Ghanaians looking to secure stable returns and diversify their portfolios. By following the steps outlined in this guide and seeking professional advice, you can confidently invest in the UK property market. For personalized support and access to exclusive listings, contact Fraser Bond today.