By Stuart Bradley, Branch Manager, Belvoir Cambridge
Yes, a US citizen can buy property in the UK. There is no citizenship or residency requirement to own a home here. What changes for a buyer coming from the US is the paperwork, the tax, how a mortgage works and how the purchase itself is carried out. This guide covers each, and the option of renting first while you settle in.
Can a US citizen buy a house in the UK?
Yes. The law does not require you to live here or hold a UK visa in order to buy. You will need to prove who you are and where your money comes from. UK solicitors and lenders have to carry out identity and anti-money-laundering checks, so expect to be asked for ID, proof of address and evidence of where your deposit has come from. Having these ready early avoids delays.
Stamp duty and the non-resident surcharge
Stamp Duty Land Tax is the tax paid on most property purchases in England. Rates and thresholds change, so check the current ones on GOV.UK. If you are not a resident in the UK for Stamp Duty purposes when you buy, an extra surcharge applies on top of the standard rate.
This matters for people relocating. Stamp Duty has its own residency test, which is separate from the test for income tax. In general it looks at whether you spent at least 183 days in the UK in the 12 months before the purchase, so someone who has only just arrived may be treated as a non-resident. In some cases the surcharge can be reclaimed if you then spend enough time in the UK. GOV.UK sets out the test and the refund rules, and your solicitor can tell you how they apply to you.
Getting a UK mortgage as an American
Some UK lenders will lend to American buyers, but the criteria varies a lot. Lenders often want to see income, a visa, and employment details and may ask for a larger deposit from someone with no UK credit history. A mortgage broker who works with international buyers will know which lenders to approach and can tell you what applies to your situation. Speak to one before you start viewing, because a mortgage in principle gives you an idea of what a lender may be willing to lend.
Freehold and leasehold
In England, owning a home and the land it stands on outright is called freehold. It is common for houses. Many flats, and some houses, are leasehold. With leasehold, you own the home for a fixed number of years under a lease, and you usually pay a service charge to the freeholder or a management company, and on some leases ground rent as well. The length of the lease and the cost of the charges affect the value of the home and what a lender will accept.
Before you buy a leasehold property, ask your solicitor to explain the lease length, the annual charges and any restrictions, and do it before you commit to the purchase.
How a UK purchase works compared with a US closing
There is no escrow period in the US sense. In England and Wales, when the seller accepts your offer, the sale is not legally binding. Either side can still withdraw until contracts are exchanged, which is when both are committed and you usually pay your deposit. If the seller accepts a higher offer from someone else before then, it is called gazumping. Completion follows when the balance is paid and you get the keys. A solicitor or conveyancer does the legal work, and there is no escrow or title company. A homebuyer’s survey is your own choice and your own cost and is worth having.
Because an accepted offer can still fall through, it helps to have your finances, ID and solicitor lined up before you make an offer.
Renting first
Many people who relocate rent for the first few months, then buy once they know which area and type of home suit them. Landlords and agents will want to check your identity, your right to rent, your income and, usually, a reference. A landlord has to check the right to rent of every adult who will live in the property, whatever their nationality. Non-British citizens can prove it with a share code from the Home Office online service or with their original immigration documents. If you have no UK credit history, ask what the landlord will accept instead, such as an employer’s letter, bank statements, references from a previous landlord or a guarantor.
Start looking early, because the checks take time.
| Relocating to Cambridge from the US? Tell us your timeline and budget, and we will send you what is available or coming to the market. |
Where to live and schools
Where you work is a good place to start. Cambridge has a large research and technology community, with employers on the Cambridge Biomedical Campus to the south, the Science Park to the north and the university and colleges in the centre. Look at the commute from each area to your workplace, and test it at the time you will travel.
If you have children, check the admissions rules for the schools you are interested in before you choose where to live. Applications for state school places go through the local council, places are allocated using each school’s admissions criteria, such as distance or catchment area, and the application deadlines do not wait for a house move. Independent and international schools set their own admissions.
Common questions
Can a US citizen buy a house in the UK?
Yes. There is no citizenship or residency requirement to own property in the UK. You will need to pass identity and anti-money-laundering checks and show where your funds come from. Using a UK solicitor who has acted for overseas buyers can help the process go smoothly.
Do Americans pay extra stamp duty when buying UK property?
Not because they are American, but non-UK residents pay a surcharge on top of the standard rate. Stamp Duty has its own residency test, which in general looks at whether you spent at least 183 days in the UK in the 12 months before you buy. Check the current rules and rates on GOV.UK and ask your solicitor.
Can I get a UK mortgage as an American?
Some lenders will lend to American buyers, but criteria vary. Lenders may ask about your visa, employment and income, and may want a larger deposit if you have no UK credit history. A mortgage broker who works with international buyers can tell you what is available.
How do I rent in Cambridge without a UK credit history?
Ask the agent what they will accept instead. This might include an employer’s letter, bank statements, references from a previous landlord or a guarantor. You will also need to prove your right to rent, which non-British citizens can do with a share code or original immigration documents. Start early, because the checks take time.
Which areas of Cambridge are best for American families?
It depends on where you work, your budget and your children’s schools. A sensible start is to look at the commute from each area to your workplace and to check the admissions rules for local schools. Tell us your plans and we will suggest areas to view.
| “The biggest surprise for people coming from the US is that an accepted offer is not a binding deal. Get your finances, your ID and your solicitor sorted before you make an offer, and the process is much smoother.”
Stuart Bradley, Branch Manager |
Moving to Cambridge from the US? Register with Belvoir Cambridge, tell us your timeline and budget, and we will send you what is currently available.
