Tags: foreign / foreign property / london / UK

UK home prices: More signs of market easing...

- September 12, 2014 No Comments

British house prices rose at the slowest pace in August, according to a survey on Thursday that suggested speculation about higher interest rates has dampened buyer confidence.

The Royal Institution of Chartered Surveyors' monthly house price balance fell to +40 last month, its lowest level since last August, and falling short of forecasts for +47 in a Reuters poll of economists. July was revised down slightly to +48.

Agreed sales fell for the first time since September 2012 and there was a second consecutive fall in buyer inquiries.

"Some of the momentum has come out of the housing market of late reflecting in part concerns over a likely rise in teh cost of borrowing at some point in the not too distant future," said Simon Rubinsohn, chief economist at RICS.

Bank of England governor Mark Carney said on Tuesday that the bank may start to raise interest rates next spring if the labour market continued to recover from the financial crisis.

The RICS survey of chartered surveyors added to evidence that London's housing market is cooling off after fervent price growth earlier this year. The London house price balance eased to +9 in August from +11.

Mr Rubinsohn said: "There are signs that the Londonmarket is gradually moving on to a more sustainable footing with a modest increase in the number of instructions coming through slowly helping to create a better balance with demand, and in the process, taking the edge off price gains."

Britain's biggest house-builder Barratt Developments on Wednesday predicted a return to "more normal" trends in Britain's housing market.

Source: Reuters

Yet another sign of easing in the British property market but then again, one has to take such survey with a slight pinch of salt as depending on who does it and how it is done, the results can most always be subjected to interpretations.
 

However, the fact remains that the amount of new housing stock is currently rising at a much faster pace compared to say, 2 years ago. This is especially within the prime areas around London. Market analysts have estimated that 48% of the nearly 23,000 new homes priced at more than GBP1,000psf are located in the six key clusters along the River Thames. And some 13,000 units could enter the rental market over the next few years. 
 

But with a combination of increasing number of new homes coming onto the market, increasing sound bites about upward revision of interest rates and the implementation of capital gains tax come April 2015, these are certainly factors that potential investors (especially overseas) should take into consideration before putting ink to paper on that investment property in London...

 

 

 

Tags: london / savills / UK

The London Collection

- September 11, 2014 No Comments

The wife and I were invited to a cocktail reception earlier in the week organized by Savills to showcase The London Collection - a portfolio of three luxury residential properties developed by Ronson Capital Partners. 

 

The London Collectionconsists of the following projects:

 

1.   Riverwalk

Located on the North Bank of the Thames in Westminster, Riverwalkoffers spectacular views over the river and London. This 999-year leasehold project consists of 113 apartments spread across two organically shaped buildings that have been designed to echo the curvature of the river. Riverwalk offers units of one- to four-bedroom as well as penthouses. It is scheduled to TOP in autumn of 2015.

Asking price for a 681sqft, one-bedder is GBP1.40 million (GPB2,056psf) while a 934sqft, two-bedder goes for GBP1.82 million (GBP1,948psf).

 

2.   Chiltern Place

Located at Chiltern Street, which is often doubted "the coolest street in London" as it combines the historic beauty of Londonwith the best of contemporary retail and culture, Chiltern Place is a 16-storey luxury private residential tower consisting of 55 apartments. The 999-year leasehold project is scheduled to TOP in Q3 of 2017 and offers units of one- to 4-bedroom and penthouses. 

We do not have the asking price for the one-bedder (either all 8 of them are totally sold out or yet to be released) but the smallest 2-bedder of 1,137sqft on offer costs GBP3,600,000 (GBP3,166psf)!

 

3.  The Heron

Completed in 2013, The Heron is the tallest apartment tower to be built in London Citysince 1976. Centrally located at the Square Mile, the 36-storey tower offers a panoramic view of the Londonskyline. The 190-year leasehold project consists of 285 units offering 2- and 3-bedroom apartments as well as penthouses.  

The showcase for the evening only featured the "Penthouse Collection"- these are the bigger units located on the 31st - 35th floor of the building. Each apartment is over 2,000sqft and costs between GBP3.75 - 4.95 million. The 2 penthouses are 4,343sqft (3-bedder) and 6,775sqft (4-bedder) respectively with prices only available "on application". 

Out of the 13 apartments within the "Penthouse Collection", 8 of them have already been sold. And if it's any consolation, the price will include 1 parking space within the building.

 

 

The event was another "education opportunity" for the wife and I:   Other than reaffirming the fact that we will not be able to afford anything within London Cityitself (not in this lifetime anyway), it also reinforces the notion that location is paramount when comes to determining the value of a property. 

And speaking of location, the view at the rooftop bar of The Fulleration Bay Hotel (where the reception was held) was actually quite spectacular, despite this being a rather short building.

 

 

 

 

Tags: foreign / foreign property / london / UK

London property remains hot with Asians

- September 7, 2014 No Comments

London property is hotter than ever, with Asian investors - especially those from Singaporeand Hong Kong - and increasingly confident British buyers snapping up units, consultants say.

But although prices continue to rise, there does not appear to be a bubble forming.

Average prices in prime Central London have risen 10.09% over the past four quarters to about GBP1.64 million ($3.4 million), property consultancy London Central Portfolio (LCP) said last week.

Long-term growth has averaged 10.5% a year since January 1996.

LCP noted that prime Central London transactions are at their highest level since 2007. There have been 6,546 transactions over the past four quarters, up 19.34% year-on-year.

Prices in Greater London are also on the rise, posting an annual growth rate of 8.53%, which brings average values to about GBP530,000.

Transactions here for London properties are at their highest level since 2007 as well, with 116,551 sales over the past four quarters, up 28% year-on-year.

"People buying now can see the benefit of slightly fringe locations, looking at them for the longer-term prospects,"said Mr Liam Bailey, global head of residential research at Knight Frank.

He added that while it has been a well-established trend for foreigners to buy in London, new buildings in recent years have seen especially strong take-up among Asian investors.

Singapore buyers have long been keen on London property.

"It's almost like a commodity that people buy and sell... investors here like London as it's a tested and proven market," said Ms Doris Tan, head of international residential properties at JLL.

London developments continue to stage launches here because of the high level of interest they garner.

Principal Tower, a 50-storey, 243-unit luxury residential building located in the City of London, was launched on Friday.

The prject is part of Principal Place, a mixed-use development that will feature a 15-storey commercial building and retail outlets as well as a piazza that could become a neighbourhood centre, said W1 Developments.

It is being jointly developed by W1 Developments, Brookfield Office Properties and Concord Pacific.

Principal Tower is being exhibited at the St Regis Singapore hotel. Apartments range from 500sqft for one-bedders to 2,500sqft for three-bedders, for about GBP1,450sqft. Price start at GPB600,000.

As at Friday, more than 30 units had already been sold through pre-sales.

"It's unusual to have an exclusively residential high-rise building at such a prime address," said W1 Developments managing director Christopher Murray.

The Landau, a 89-unit luxury building in Fulham, London, was also exhibiting yesterday, at the Regent Singapore hotel. Prices start at GBP915,000 for a one-bedroom apartment.

 

Overall, the pound sterling is likely to remain stable in the short to medium term, and should not strengthen significantly against other currencies during the remainder of teh year, noted Mr Bailey.

"As the major issue in Britainis deflation rather than inflation, the bank is unlikely to raise rates."

Source: ST

Much has been said and written about the current state of the Londonproperty market and more importantly, whether a bubble is forming (if not already). While many have acknowledged that the bull is running a tad slower these days - prices have fallen for the past 2 consecutive months - home prices in London are currently still hovering at its peak. If long-term price growth for Central London has averaged 10.5% a year since 1996, current prices are already more than 6 times what it was 18 years ago (if our maths are correct)!

So with transactions for both Central and Greater London being at their highest levels since 2007, the much bigger investment quantum needed given that prices are at their peaks and properties being labelled as "a commodity that people buy and sell", the underlying risk has definitely become greater when come to investing in a Londonhome.   

Having said that, there is always money to be made in any kind of market. Key to this is always the "right" timing of entry and more importantly, exit. While the wife and I do not think that the Londonproperty market will crash anytime soon, we do believe that a bubble is forming slowly but surely. Going forward, it will be increasingly challenging to make money out of this market.

 

This is mainly the reason why we have decided to exit the London market... but not discounting the UK altogether... yet.

 

 

Tags: foreign / foreign property / london / UK

London property market: Prices fall in July for second month running

- July 22, 2014 No Comments

Asking prices for London property fell for a second month in July as an increase in the number of homes for sale softened the market for sellers, Rightmove plc said.

Prices sought in the UK capital fell 0.4% from June to an average GBP587,174 (S$1.25 million), the property website operator said in a statement yesterday.

Across Englandand Wales, prices fell 0.8%, their first decline since December.

The UK property market is losing steam, after the Bank of England said it posed the greatest risk to the economic recovery.

Financial stability officials set a cap on loan-to-income ratios last month to prevent surging prices leading to an excessive build-up of debt.

The declines are "a sign of some sellers asking beyond what buyers and lenders judge to be affordable or fair value",  Miles Shipside, director at Rightmove, said in a statement.

"Market conditions still compare favourably with this time last year, with growth in both the economy and employment, plus a comparative thaw in mortgage availability."
 

The number of properties offered for sale in Londonis 15% higher this year than the same period in 2013, according to Rightmove. New sellers rose 28% from a year earlier.

The decline in the capital was led by three districts, Islington, Wandsworth and Kingston, each of which fell 3.8% on the month.

Nationally, of the 10 regions tracked by Rightmove, seven posted declines. These were led by 1.9% falls in the East Midlands and the North.

Rightmove yesterday refined its forecast for 2014 house price growth to 8% from a previous prediction of 6 - 8%.

A stronger pound may also be deterring foreign buyers by making UK assets more expensive, Rightmove said.

The UK currency reached US$1.7192 on July 15, the highest since October 2008.

That point was echoed last week by Deutsche Bank economist George Buckley, who said the gains in Sterling along with global economic weakness and the withdrawal of BOE stimulus may sap demand for homes in the capital.

"There seem to be more downside than upside risks to Londonhousing going forward," Mr Buckley said.

"While we do not expect a crash in Londonproperty prices, we do expect price pressures to ease going forward and would not be surprised to see outright falls in asking prices."- Bloomberg.

Info source: BT

The wife and I were kinda glad that we decided to exit the Londonmarket during the early part of this year, immediately upon the TOP of our property. It is still very much the norm that UK home buyers prefer to buy properties that are ready for occupation. Our original intention was to "hold and rent" but after seeing the deluge of private homes that were coming onto the market over the past year, we reckon that it may take a longer than expected time to rent the place out, especially if we insist on a certain level of rental yield.

Although investment in Londonproperties may not seem to be as attractive now, it may not be a reflection on the state of affairs for the whole UK.  If one bothers to look north of the border (i.e. Scotland), there are still some decent opportunities to be found. As one prominent Scottish property consultant commented on their latest price report for June 2014,  "The improvement in market activity (in East Central Scotland, which include Edinburgh) in 2013 has continued into 2014 with a notable rise in the number of homes being bought and sold. Conditions are more favorable for sellers, with more homes achieving Home Report valuation and selling times shortening. We’ve also seen a continued rise in the popularity of the Offers Over approach to selling a home, with roughly two-thirds of homes coming onto the market being advertised in this way.

"Whilst the market has improved it’s worth putting the growth we’ve seen in perspective. The number of sales we’re seeing is still around 25% lower than at the peak of the market and the rate of house price inflation in most areas in moderate, especially when compared to the rapid rises being observed in some areas south of the border."

 

 

 

Tags: foreign / foreign property / UK

UK buy-to-let investors warned of mayhem (Part 2)

- July 18, 2014 No Comments

The BOE's new home-loan restrictions follow rules introduced in April after the Financial Conduct Authority's Mortgage Market Review. The rules, which don't apply to buy-to-let mortgages, require borrowers to prove they can afford to make payments even if interest rates rise.

One in three of the 50 economists surveyed by Bloomberg predict an increase this year from the record-low 0.5% benchmark rate the BOE has maintained since March 2009. Aldermore Bank plc, which provided Mr Kordestani with his last mortgage, offers a two-year fixed rate buy-to-let loan of 4.08% for 70% of a home's value, according to the lender's website.

The Financial Conduct Authority said it will consider buy-to-let when it reviews the impact of its latest rule changes. The BOE, in its first set of stress tests, will assess the country's eight biggest lenders on how they would cope if interest rates rose to 4% and house prices dropped by 35%.

"That is an approach across the housing market, which will allow us to test buy-to-let lending as well as the owner-occupier market," Andrew Bailey, BOE deputy governor for prudential regulation, said at a June 26 press conference. "It's not that we're going to ignore the buy-to-let market in terms of the supervisory oversight and observation."

Mr Carney told lawmakers on Parliament's Treasury Committee in London on Tuesday that the central bank is closely watching the buy-to-let market. "Current underwriting standards are in line with historical patterns and didn't warrant a response at this stage."

In London, buy-to-let investors took out more than GBP750 million of mortgages during the first quarter, which had more than 10 times the impact on prices compared with the government's Help-to-Buy lending assistance program, according to a May report by Morgan Stanley analysts including Huw Van Steenis.

Almost half of the new homes bought in the city last year were buy-to-let, according to asset manager London Central Portfolio Ltd.

Home values are rising faster than rents, That pushed down yields, which is rental income as a proportion of the purchase price, to 6.3% in the second quarter from 6.4% in the previous three months, Mortgages for Business said in July.

The small-landlord market could climb further from April 2015 when changes to government policy will give pensioners control over how they spend their retirement savings. Currently they must invest in an annuity - an annual income from a life insurer.

That's "freed up potentially a large flow of additional funds to go into the housing market", some of which may go to buy-to-let, said Wood at Berenberg Bank.  - Bloomberg 

Info source: BT

 

The higher property prices/ lower rental yields due to the increasing number of "buy-to-let" in the UK is of concern not only to local landlords but even more so for overseas investors, which typically buy for rental purposes. Although the "rent rather than buy" culture has traditionally been strong amongst UK home-dwellers, the deluge of new homes that are being put onto the market will continue to put a damper on rental prospects and yields.

 

This is something that potential investors into UK properties should take into consideration of.

 

 

 



Tags: foreign / foreign property / UK

UK buy-to-let investors warned of mayhem (Part 1)

- July 17, 2014 No Comments

This article from Bloomberg was published in today's copy of BT. Because of the length of the article, we will split it into two parts for easier reading.

++++++++++++++++++++++++++++++++++++++++

Shahram Kordestani, who owns seven UKrental homes, has advice for investors eager to join the swelling ranks of landlords: Do so at your peril.

 

Mr Kordestani, who has been renting homes in Londonand south-east Englandfor about 12 years, said when interest rates rise, the jump in mortgage payments will hammer buy-to-let investors who have helped push up property values. "There is going to be mayhem," said Mr Kordestani. "Whoever pays those prices is going to suffer."

 

The loan-to-income cap that Bank of England (BOE) governor Mark Carney introduced last month to cool Britain's housing market does not apply to buy-to-let  - the fastest-growing type of mortgage by value.

 

Economists say a hike in the central bank's benchmark interest rate or falling prices could result in a repeat of the past, when repossessions of private-landlord homes hit a record high after the 2008 financial crisis.

 

"It was a mistake not to include buy-to-let investment," said Rob Wood, a former central bank official who is now an economist at Berenberg Bank in London. "It's one way in which households can speculate on house prices rising and that is exactly the sort of dangerous debt built-up that Mark Carney was trying to avoid."

 

Buy-to-let lending is climbing as Britons rent properties for longer periods. The proportion of amateur landlords - those who supplement their salaries with rental income - reached a record 72% of the buy-to-let industry in the first quarter after rising by 10 percentage points in the two years through March, according to the National Landlords Association. There are 1.7 million residential landlords in the UK, the group said.

 

 

Lenders provided GBP2.2 billion (S$4.68 million) of private-landlord mortgages in April, a 57% increase from a year earlier, according to the Council for Mortgage Lenders (CML). Almost half of that by volume was refinancing.

 

Gross mortgage lending increased 36% to GBP16.6 billion and loans to first-time buyers gained 47% to GBP3.5 billion in the same period.

 

Homes bought as rentals made up 14% of new mortgages during the second quarter, according to the CML. Lenders offer a record 637 buy-to-let mortgage products, a 37% rise from a year earlier, according to broker Mortgages for Business Ltd.

 

Lenders "who aren't into it want to go into it; those that are there want to expand", Richard Sexton, a director at property appraiser e.surv, said. "It's a different pool to fish in."

 

Financing for residential rentals became easier to obtain starting in the 1990s, when the government allowed more companies to provide mortgages. That fuelled a 19-fold increase in buy-to-let lending in the decade through the end of 2007, during which UKhome values tripled.

 

The market collapsed as the credit crisis spurred a 15% drop in UK property prices in the 18 months through March 2009. New lending to rental property investors rose by 40% in 2011, outpacing new residential lending.

 

Mr Carney last month introduced limits on mortgages worth more than 4.5 times the borrower's annual income and mandated an affordability test in an attempt to slow runaway prices in London.

Values in the capital climbed 26% in the three months to June from the year earlier, the biggest annual increase since 1987, according to Nationwide Building Society. UK prices climbed 8.8% during the period, according to Halifax.

Mr Kordestani planned to add a seventh property this year in Kingston-upon-Thames, south-west London, only to find that values for properties such as the two-bedroom Victorian cottage he sought had jumped by more than GBP50,000 in six months. Instead, he bought a home in Woking, 25km from Kingston.

{ to be continued }

Info source: BT

Tags: foreign / foreign property / UK

UK home prices: Rate of growth slows in June

- July 13, 2014 No Comments

UK home-price growth slowed in June as new mortgage regulations dampened activity and some of London's most expensive areas posted declines, a survey shows.

 

Values in England and Wales rose 0.7% from May, when they increased one per cent, according to data compiled by Acadata Ltd.

 

Prices gained 9.6% from a year earlier to GBP268,637 (S$571,450), the real-estate research firm and LSL Property Services plc said in a report yesterday.

 

Regulations introduced tougher mortgage affordability tests in April, under the Mortgage Market Review (MMR), and the Bank of England took action last month to limit riskier loans. Officials left the benchmark rate at a record low 0.5% on Thursday to underpin the recovery, counting on its macroprudential powers to prevent an unsustainable build-up of debt.

 

 

"There are new signs that growth is beginning to slow as we move into summer and following the changes brought about by the Mortgage Market Review," Richard Sexton, director of LSL's e.surv division. Still, "the housing market recovery continues to seep across the country beyond the capital".

 

In May, the latest month for which regional figures are available, prices in London surged an annual 15.6% to an average of GBP545,643.

 

In Hammersmith and Fulham, the fourth-most expensive London district, prices dropped 0.1% in May from April, to an average of GBP838,232.

 

In the City, the capital's financial area, they slumped 8.2% to GBP819,920. Values rose 3.8% in Kensington and Chelsea, Britain's priciest district with an average house price of GBP1.94 million, after a 28% surge in the past year.

 

Acadata estimates that housing transactions in Englandand Walesrose 10.3% in June from a year earlier to 73,750. They slid 6% from May.

Info source: Bloomberg

 

Click on the link below to get an "easy to understand" (at least to us) of MMR and how it will impact mortgage market participants:

http://www.glovers.co.uk/news_article490.html

Tags: foreign property / overseas / UK

So you are looking to buy an UK property...

- June 7, 2014 6 Comments

The wife and I first got into the UKproperty scene back in July 2012, in a rather funny sort of way.

 

We recalled having some free time on our hands that fine Sunday afternoon, so we decided to check out an “Open House” for a residential project located near Bond Street that Colliers was marketing. For those of you who are not too familiar with what’s where in London, Bond Street is probably akin to our Orchard Road.

 

When we got to the venue, we realized that the project was fully sold out. To be fair, it was a rather small development of less than 20 units. And because of the location and price quantum, it was quite an easy sell. But being the enterprising marketing person that she is, the Collier lady started “selling” us another development that was located in the Camden area. Camden is a tad further out from London City Centre (but still within Zone 1 – which we will talk a bit more about later) and is a quaint little township famous for its canals and weekend markets. It also houses quite a large Asian community.

 

Between us, the wife was the de facto “expert” when comes to London, as she had spent some years studying there. She had always liked the Camden area, as it is located away from the hustle and bustle of Londoncity and yet within convenient commute to the city, both by bus and tube (aka MRT).

 

After some deliberation (like for about 15 minutes), the wife and I decided to put money on a 2-bedroom unit of about 700sqft that faced the canal. The payment scheme was 10% down with balance payment due upon legal completion. The expected gross rental yield was around 5%. The project has subsequently TOP in January of this year and we sold it within 2 months after finding a buyer.

So what are the Pros and Cons of investing in a Londonproperty? Here are our thoughts:

Pros:

1.       London (and for the most part of UK) is primarily a rental market. The average Londoner has supposedly been priced out of the property market so they mostly rent. As such, there is a large captive market for residential rentals.

2.       Housing prices in Londonare rising at its fastest rate in almost 4 years. This is largely attributed to a huge influx of foreign buyers over the past 2 – 3 years.

3.       There is no ABSD or SSD to content with when buying/selling a London property. Also, no capital gains tax is currently applicable for non-residents making gains from UK properties. However we understand that the UKgovernment is preparing to introduce such a tax by April 2015.  

 

Cons:

1.       Price rise is showing signs of slowing, with some market watchers believing that prices are already plateauing. This is largely due to more and more properties coming onto the market in the last 1 - 2 years.

2.       Rental yield has suffered considerably as properties in London becomes more and more expensive, due to the strong demand from foreign buyers in recent years.

3.       Rental income for non-resident landlords are taxable at a rate of 20%. However, certain recognized deductions (e.g. interest portion of mortgage payment) are allowed.
 

So what have the wife and I learnt from our first UK property venture? Below are what we deemed as the "lesser known trivia" from our Camden experience:

Trivia #1:           Location matters, not just because of rental yields or resale value.
Recall when we talk about Camden being in Zone 1? The zones are actually derived from the Londontransport maps – these consist of 6 main concentric rings around London. Zone 1 and 2 are in Central London while zones 6 – 9 covers the outer edge of the Capital.  What this means is that areas in Zone 1 are the closest to London City Centre. It also means that properties in Zone 1 are typically the most expensive in London, as they are most sought after by both occupants and investors.

So when someone is trying to sell you a property in London, where (or specifically, which zone) is the property located is an important consideration. Putting it in Singapore context, you could be comparing a property in say, River Valley to one that is located in Woodlands!

While talking to our bankers for our mortgage loan, we also discovered that the loan amount that the bank is prepared to extend may differ depending on which zone the project is located – we were told that for zone 1, our bank can lend up to 80% of the purchase price, but this drop to 70% for the other zones.

Trivia #2:           Resale is prohibited until legal completion

This is apparently a standard rule all over the UK. So investors looking to "flip" his property ((i.e. selling before legal completion) will be solely disappointed. It also mean that you better get that mortgage loan in order prior to legal completion, as you will definitely have to pay first before you can sell later. The wife and I only learned about this restriction after we have purchased the property.

(* Apparently there is some discrepancy between what we understand and what one of our reader was able to do. The wife and I are currently on vacation and will sort this one out when we return next week. *)

Trivia #3:           Review the Contract of Sales carefully before signing and returning

The Contract of Sales is sent by the UK lawyer handling the conveyancing to you. You are supposed to sign and return the copy back to them. The process is called exchange of contracts between Seller and Buyer.

For our Camden property, the wife and I were told that the down-payment was 10% and the same was also indicated in our Reservation Form when we put down the deposit. But the developer (in view of better than expected sales), has decided to charge a 15% down-payment subsequently. And our contract had stated that an additional 5% was payable 6 months after the signing of the contract. We refused to sign the contract and managed to argue our case successfully for the deletion of the "additional 5%" clause.

Trivia #4:           Go with a Managing Agent
At every foreign property launches in Singapore(for UKproperty at least), there is always representatives from the Management Company that the developer has appointed for the said project present. For a fee of about 10 - 15% of the monthly rental, these managing agent will help you "manage" the property that you have purchased, right from assisting you with the legal completion process (e.g. collection of keys and checking for defects), to finding you a tenant and purchasing the required furniture (i.e. if you are renting out the property) and even help you with refurbishment of the unit in between old and new tenants. Last but not least, the managing agent will also help compute and advise you on the taxes applicable on your property.

Appointing a managing agent will save you the hassle of doing all the above by yourself. This is especially if you do not intend to travel to manage your property at any regular interval of time.

Trivia #5:           Not all conveyance lawyer are built equal

This may also apply in Singapore but we have always worked with the same lawyer that we have gotten to know (and comfortable with) whenever we transact a property in Singapore. But when you buy a foreign property, you will probably go along with whatever solicitor that the developer appoint (since they are paying the lawyers' fee anyway).

Our experience with the UK law firm that was handling the coneyancing work for Camden has leave a lot to be desired. Maybe it was just our luck, but it has taught us to take ownership of the process else we could have been left hanging. So if you know that something is supposed to happen at that point in time but nothing seems to be happening, be proactive and contact the person (usually a legal clerk of sorts) that is handling your case. Do not simply sit and wait for things to happen. If we had just waited, we might have missed the completion dateline on the sale of our Camden property!

Trivia #6:           Opening a UK bank account

This is necessary when you want your tenant to deposit their monthly rental, or in the event that you sell your property. Some banks have branches both in Singaporeand UK, which will enable you to open a Sterling Pound account in UKand have whatever monies that are due to you deposited into your local UKaccount. After which, you can transfer the money from UKto Singaporevia intra-bank transfer at your own leisure. The advantage of this, as compared to say TT Remittance, is that the transfer is almost immediate and there is no charge if you do it over the internet.  

HOWEVER, the wife and I have discovered that opening an UKaccount and to have this linked with your Singaporeone is not as simple a task as one might assume. The phone verification process for UKaccount opening is a real pain and if you think that is bad, trying to link both the UKand Singaporeaccounts so that you can transfer money over the internet can make you wanna tear your hair out! Having said that, the transfer process is a breeze once everything is set up properly. So it will be best to set this up early and not try to do so like a week before you need the UKaccount.

So there you have it. Hope the above is of some help to those who are thinking of investing in a UK property. And if anyone has more experience or advice to share, the wife and I will be most delighted to hear from you!