Buying Property in London
For Italian families who plan on settling in London long-term, buying a home may make sense financially and provide stability. Here’s an overview of what to know about buying property as an Italian in London:
Mortgages for Expats
Getting a mortgage as an expat or foreign national buying in the UK can be tricky, as most UK banks and lenders will require you to have indefinite leave to remain or settled status. However, there are some banks that specialise in mortgages for expats, so do your research to find lenders who will work with your immigration status. You’ll likely need a substantial deposit saved up as well.
Deposits
The minimum deposit required is usually around 10-20% of the property value. However, for expats buying in the UK, you may need a 30-40% deposit. Shop around with various lenders, as some may accept a lower deposit percentage for expats.
Areas to Buy In
Popular areas for Italians in London include Clerkenwell, Barbican, Victoria, Kensington, Brixton and Acton. Look for family-friendly neighbourhoods that also have an established Italian community nearby. Proximity to Italian shops, restaurants and schools is a plus.
Buying Costs
Beyond the property price, you’ll need to budget for additional buying costs like:
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Stamp duty – A tax paid when purchasing a property over £125,000. Rates range from 2% to 12% depending on the property value.
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Solicitor fees – Expect to pay £1000-£2000 for a solicitor to handle the conveyancing when buying.
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Mortgage fees – Lenders charge fees for arranging the mortgage, valuing the property and more. Budget £500-£1000.
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Surveys – A property survey helps identify any structural issues. Budget £200-£500.
Using an Agent
Hiring a buyer’s agent can help you find and negotiate the best possible property. They have insider knowledge of the London market. Fees range from 1-3% of the purchase price.
Renting in London
Renting gives Italian families more flexibility when first moving to London, without the long-term commitment of buying. Here are tips for expats renting in the city:
Short-Term Lets
If you need temporary accommodation when you first arrive, short-term serviced apartments or Airbnbs are an option. They’re fully furnished and flexible. Prices average £900-£1200 per week.
Estate Agents
Work with a local estate agent to find a long-term rental apartment or house. Agents charge fees equivalent to 1-2 weeks rent. Use Rightmove and Zoopla to search listings.
Rental Costs
Expect to pay around £1500-£3000 per month for a 2-3 bedroom flat/house in a family-friendly area. Additional fees include a security deposit (5+ weeks rent) and reference checks (£50-£100 per adult).
Rental Contracts
Review the tenancy agreement carefully before signing. Standard contracts are 6-12 months. Confirm your breaking lease conditions. Use a lawyer if needed.
Rent Protection
Consider rent guarantee insurance, which covers your rent if you lose income and struggle to pay. Policies cost around £15-30 per month.
Furnished/Unfurnished
Around 60% of rentals in London are furnished. However, unfurnished is more common for long-term family rentals. Prepare to provide your own appliances and furniture.
Shared Ownership Schemes
Shared ownership gives families an intermediate option between renting and full home ownership. Here’s how it works:
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You purchase between 25-75% of a property’s value from a housing association.
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You pay subsidised rent on the remaining share that you don’t own.
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Over time, you can purchase larger shares until you own 100% of the property.
Who is Eligible?
Shared ownership is aimed at first-time buyers who can’t afford to buy a home outright. You’ll need to meet income eligibility caps that vary by region. Speak to a housing association to assess your eligibility.
Upfront Costs
You’ll need savings for a deposit (minimum 5-10% of your share value) as well as solicitor fees, mortgage fees and stamp duty. Ongoing, you’ll pay a subsidised rent and mortgage.
Availability
New shared ownership homes are somewhat limited, so join waiting lists and act quickly when opportunities do arise, especially for family-sized homes.
Risks
The biggest risks are not being able to staircase up to full ownership, losing your home if you default on payments, and difficulties selling your share later on. Consult a financial advisor first.
Additional Tips for Italian Families
Here are a few more pointers to help Italian families settle into life in London more smoothly:
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Join Italian community groups – Sign up on Meetup.com or Facebook to connect with other local Italian families and stay in touch with your cultural heritage.
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Look into bilingual schools – If you wish for your children to continue learning Italian, research bilingual schools in your desired area.
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Bring key documents translated – Have birth certificates, marriage certificates, medical records, etc translated to English to avoid future hassles.
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Open a UK bank account – This will be needed for renting, utilities, schools and more. Comparison sites like MoneySuperMarket can help you find a suitable account.
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Learn about healthcare – The NHS provides public healthcare in the UK. As an expat, you may need private health insurance initially while getting settled.
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Handle visa/settlement – Utilise an immigration lawyer to ensure you secure the proper visa and stay on the path to permanent settlement/citizenship if desired.
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Review tax implications – Becoming a UK tax resident comes with important tax obligations. Consult an accountant experienced in expat tax law.
Finding the Right Home for Your Family
Whether buying or renting, finding the ideal place to raise a family in London takes time and effort.lean on the local Italian community for recommendations, and don’t rush into a decision. A home buying advisor can also help you navigate the property search while avoiding scams or issues.
The most important thing is choosing an area you connect with personally, that also provides the amenities, community and practical necessities an Italian family needs to thrive. London has countless fantastic neighbourhoods for Italians – take advantage of the opportunity to find your new casa lontano da casa.
