Expats in Qatar on UK property buying spree

2/5/2016 1:21:18 PM

(MENAFN- The Peninsula) By Sachin Kumar

DOHA: Expats in Qatar and the UAE are piling into the British property market in order to beat the UK’s stamp duty surcharge from April but many will face hurdles revealed an independent financial advisory organisation.

The observation comes ahead of the introduction this April of a 3 percent stamp duty surcharge on UK properties for buy-to-let investors and second homeowners compared with residential buyers.

Kevin White Head of Distribution at deVere United Kingdom part of deVere Group who presents a UK property and mortgage seminar for expats in Qatar later this month affirms: “More than 70 per cent of all enquiries at deVere Mortgages come from foreign nationals or British nationals living and working abroad. The overwhelming majority of these individuals — approximately 45 percent — currently reside in Qatar and the UAE.

“There has been a 60 percent month-on-month uplift in enquiries from Qatar and the UAE. Expats from these Gulf nations are piling into the British property market. We attribute this ‘rush-to-buy’ phenomenon to those expats who quite sensibly want to avoid being subjected to the extra levy. No-one wants to pay an extra 3 percent in stamp duty.”

A series of recently published reports confirm deVere’s observations of an extremely buoyant UK property market with demand at a three-month high.

However there are extra complications for non-UK residents. “Whilst demand for UK property soars expats need to be aware that there are extra hurdles that they will have to face” said White. “Expats should know that they are typically deemed as ‘high risk’ by the vast majority of UK lenders. They are usually ‘red-flagged’ due to a lower UK credit rating as they have lived outside the UK earned a different currency and worked for a non UK-based firm. This is often the case even for those who have substantial assets and/or a high stable salary” he added.

Kevin White and Christopher Ball deVere Group’s Area Manager in Doha will present an informative seminar including a Q&A session for expats considering a UK mortgage on Wednesday at 7 pm at Shangri-La Hotel Doha.

“Expats also need to consider other important factors including the pitfalls of wasting money on excessive rates and the ability to reclaim tax within 18 months” said White. “Therefore to avoid wasting time effort and money it is recommended that expats wanting to purchase property in the UK seek advice from advisers who have the relevant experience of cross-border financial matters who will help them fulfil the criteria in an increasingly strict mortgage environment and who have established relationships with the relevant UK lenders” he said.

The Peninsula

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