London continues to be one of the world’s most sought-after destinations for real estate investment. With its global status, legal transparency, and strong capital growth potential, the city attracts a steady stream of overseas buyers seeking both luxury residences and high-performing investment properties. In this guide, Fraser Bond outlines the key considerations, legal requirements, and advantages of purchasing property in London as a foreign buyer, along with how expert support can simplify the process and protect your investment.
London’s property market offers unique appeal to international investors due to
Global financial hub status – Home to major corporations, embassies, and international institutions
High rental demand – Strong occupancy rates in both residential and commercial sectors
Legal stability – Transparent laws and protected property rights for foreign nationals
World-class lifestyle – Education, healthcare, transport, and culture attract international buyers
Capital preservation – London prime real estate is considered a safe-haven asset
For overseas buyers seeking long-term value, wealth preservation, and income generation, London provides unmatched potential.
Yes – there are no legal restrictions on foreigners purchasing property in the UK. Both individuals and overseas companies can acquire freehold or leasehold real estate in London. However, buyers must be prepared for certain procedural and tax obligations.
Foreign buyers are subject to an additional 2 percent SDLT surcharge on top of standard UK rates. This applies to both residents and non-residents who do not meet the UK’s residency test.
Foreign nationals can access UK mortgage products, particularly if they have a strong credit profile or use international brokers familiar with expat and non-resident financing.
Other key taxes include
Income tax – Applicable on rental income earned from UK properties
Capital gains tax – Due on any profit realised when the property is sold
Inheritance tax – May apply to UK-sited assets even if the owner resides overseas
Professional tax planning is essential to manage liabilities and maximise investment returns.
Buyers must comply with strict financial verification procedures to prevent money laundering. Proof of funds, identity documents, and source of income declarations are required before transactions can proceed.
A UK-based solicitor is required to carry out due diligence, handle contract exchange, and ensure title transfer. Fraser Bond works with trusted legal partners to streamline this process.
Overseas buyers tend to favour areas that combine prestige, access to services, and long-term growth prospects. These include
Mayfair and Knightsbridge – Luxury apartments and heritage townhouses in prime central London
Canary Wharf – High-rise investment flats near global banks and the financial district
Kensington and Chelsea – Iconic residences with international appeal and long-standing value
Battersea and Nine Elms – Modern riverside developments with regeneration potential
Shoreditch and Hackney – Creative, high-yield zones attracting younger professionals
Each area offers unique advantages depending on investment strategy and lifestyle preferences.
Fraser Bond specialises in working with international clients who want to purchase, let, or manage London property. Our services include
Tailored property sourcing based on yield, location, and lifestyle needs
End-to-end transaction management including legal, financial, and compliance coordination
Access to off-market opportunities and new developments
Comprehensive lettings and property management solutions
Strategic investment advice to build or diversify London property portfolios
Our deep market knowledge and trusted network make Fraser Bond the ideal partner for global buyers seeking seamless access to London’s real estate market.
London offers overseas buyers a unique combination of lifestyle, stability, and investment performance. Whether you are acquiring a residence, a buy-to-let property, or a long-term investment asset, the opportunities in London are both broad and rewarding. Fraser Bond provides expert guidance at every stage of the journey, ensuring overseas buyers invest with confidence and clarity in one of the world’s premier property markets.
