Buying UK property remotely

Most of a UK property purchase can be handled from abroad. The points that need planning are the ones the law ties to people and paper: identity checks, signatures on deeds, which must be witnessed by someone physically present, and the movement of money. This guide follows a purchase in England and Wales from reservation to letting, and shows where each of those points falls.

The remote purchase at a glance

Reservation or offer

On a resale, an accepted offer leaves the property "sold subject to contract": agreed, but not legally binding until contracts are exchanged. On a new home or an off-plan purchase, you sign a reservation agreement and pay a reservation fee. Developers registered with the New Homes Quality Board follow the New Homes Quality Code, which sets what the agreement must contain. Our off-plan guide covers reservation terms, and current developments are on our opportunities page.

Identity and source of funds checks

The Money Laundering Regulations 2017 apply to estate agents and to legal professionals acting in the buying and selling of property. Each must identify you and verify your identity using documents or information from a reliable, independent source, and understand the purpose of the transaction. Verification can rely on a secure electronic identification process, which is how much of it is done remotely.

Where risk is higher, enhanced due diligence applies: for politically exposed persons, for unusually complex or large transactions, and for parties established in certain high-risk countries. In those cases the regulations require information on your source of funds and source of wealth. Lenders and banks run their own checks too, so expect to provide evidence more than once.

• A valid passport or national identity document.
• Proof of your current overseas address.
• Statements showing how the deposit and completion money built up, from salary, savings, a sale or a gift.
• Company documents and details of beneficial owners, if you are buying through a company.

HM Land Registry also needs evidence of identity. When a conveyancer acts for you, the conveyancer confirms it. If a party is not represented and a UK conveyancer cannot verify them, form ID1 (individuals) or ID2 (companies) must be completed by a lawyer or notary qualified in their country of residence, with evidence of authority to practise, a certified translation where needed, and a date within 3 months of lodging.

Conveyancing

A UK conveyancing solicitor handles the legal work: searches, enquiries of the seller or developer, the contract and, for a flat, the lease. For an investor, the lease matters as much as the building: ground rent, service charges and any restriction on letting all affect the return. If short-term letting is part of the plan, the lease needs to allow it. Time zones add days to every exchange of questions, so replies sent promptly keep the timetable intact.

The mortgage offer

GOV.UK's buying guide says you can exchange once your lender has confirmed your mortgage and you can pay the deposit. Each lender sets how long its offer is valid, which matters most on off-plan purchases. How lenders assess overseas borrowers, and the evidence they ask for, is in our guide to expat and foreign national mortgages.

Signing documents from abroad

For a deed relating to land in England and Wales, English law governs its form and execution even when you sign abroad. An individual signs a deed in the presence of a witness who attests the signature. HM Land Registry requires the witness to be actually present when the deed is signed, including when electronic signatures are used, so a video call is not enough. A party to the deed cannot be the witness, and a spouse, civil partner or cohabitee is best avoided. The witness's name and full address must be legible.

HM Land Registry accepts Mercury signing and conveyancer-certified electronic signatures on transfers and mortgage deeds, but not a simple electronic signature. A document signed with a qualified electronic signature can effect any registrable disposition, but any later alteration invalidates it. Your conveyancer decides which method a transaction uses. A signature in non-Roman characters is valid, though HM Land Registry then needs expanded wording confirming you understand English, or a conveyancer's certificate.

Signing through a power of attorney

If you cannot sign at the right moment, an attorney can sign for you. The power must itself be executed as a deed, and it must clearly authorise the transaction, because specific powers are read strictly.

HM Land Registry needs evidence of the power: a conveyancer's certificate on Form 1, the original, or a certified copy. The attorney signs in front of a witness and must provide evidence of identity. If the purchase completes more than 12 months after the power came into operation, evidence that it has not been revoked may be requested, though HM Land Registry says it is not normally required. It does not accept electronic signatures on a lasting power of attorney.

Exchange and completion

Exchange is when the signed contracts are swapped and the purchase becomes legally binding. The deposit is paid, and a completion date is fixed, often 2 to 4 weeks later, though the two can happen on the same day. GOV.UK warns that withdrawing after exchange may mean losing the deposit and compensating the seller. From exchange you are legally responsible for the property, so buildings insurance needs to be in place where you are responsible for it.

At completion, your solicitor sends the remaining funds to the seller's solicitor and you take ownership. Your solicitor then pays the stamp duty, due within 14 days, and registers the change of ownership with HM Land Registry. Our guides to stamp duty for non-residents and currency and international payments cover the money that has to arrive before then, and how to check where it is going.

Letting, management and tracking

Once the property is yours, PROXERA Wealth coordinates improvements, furnishing, letting and day-to-day management, with one handover instead of separate firms. Rent paid to a landlord abroad falls under the Non-Resident Landlord Scheme. PROXERA then shows value, income, mortgage and progress towards your goal, wherever you are. More on working with us from abroad is on our overseas investors page.

Country guides set out the tax treaty, currency and time difference for where you live: Hong Kong, the UAE, Singapore, Nigeria, the USA, India, Saudi Arabia, Qatar, Kuwait, Malaysia, China, Kenya, Ghana, South Africa, Canada and Australia.