How Much Cash Do I Need to Buy An Investment Property in The UK As a Non-UK Resident?

If you’re living abroad and thinking about buying a UK property as an investment, one of the first questions on your mind is probably: “How much cash do I need to buy an investment property in the UK as a non-UK resident?”

It’s a great question, and one we hear all the time from British expats and overseas investors.

You don’t need millions. But you do need a solid strategy, a realistic budget, and a clear understanding of what the cash outlay actually involves.

Before you even start to book viewings, you must know every single penny that the investment will cost you to avoid not having enough cash on completion day.

We’ll break down each individual cost below, and give you the total cash amount needed for an average UK investment property.

What Does “Cash Required” Really Mean?

When we talk about “how much cash you need,” we’re referring to the upfront capital required before you own the property and start earning rental income.

This includes:

1. Deposit

2. Stamp Duty

3. Legal & Professional Fees

4. Property Sourcing/Consulting Fees

5. Mortgage Broker Fees

6. Mortgage Application Fees

7. Refurbishment Costs

8. Cost Of Tenanting the Property (People normally forget this)

9. Contingency fund

A lot of these costs are impacted by the total value of the property, so let’s first discuss what property value can work for you.

If you’re a first-time investor, you probably want to start on the smaller end of the scale in order to mitigate the impact of any mistakes you make. Making a mistake on a £95k property is not as bad as making a mistake on a £450k property, for obvious reasons.

Most of our clients buy properties that are valued between £100k and £200k. The reason for this is twofold; 1) Low barrier to entry in terms of cash & 2) naturally higher rental ROIs vs more expensive properties.

This is not to say that more expensive properties do not provide good rental ROI, because they do, but these cheaper properties work better in my experience (when looking at a single BTL). If you are going down the HMO route, this rule normally doesn't apply.

Now some of you are thinking “Are there even properties in the UK for £100k?” and the answer is yes, in the midlands and the North.

Now you’re thinking “But these must be in awful areas, right?” and the answer is not all of them.

Granted, there are some £100k properties in dodgy areas that I would not touch at all ... ever. But the properties that our clients are buying are in areas with good schools, low crime rates, hospitals and good job prospects. Invest on formulas, not feelings.

Don’t get me wrong, these properties are not easy to find, but this is what we specialise in and it’s why our clients trust us to build their portfolios for them whilst they’re based out of the UK.

If you want our support on location analysis, this is perfect for you.

Now that we have cleared up the property price, and locations, let’s dig into each cost in detail to determine how much cash we need to invest in UK property from overseas.

Example Property: 3 Bedroom Freehold Semi-Detached Property: £125k

1) The Deposit

As an overseas buyer, you’ll usually need to put down 25% of the property value as a deposit.

So, if you want to buy a property for £125,000 you’ll need £31,250 upfront for the deposit.

This 25% is standard for UK passport holders. You can also get 20% deposits with some lenders as a UK citizen which can increase the rental ROI of your deal, so make sure you ask your broker about this.

For non-UK passport holders, 25% deposit is still possible but you’ll have a higher risk of being on the end of 30% (£37,500) and even 35% (£43,750) deposits which can naturally reduce your rental ROI.

If you want an introduction to a good mortgage broker for non-UK residents, whether you’re a British expat or a non-UK national, contact us here.

Deposit for £125,000 property = £31,250

2) Stamp Duty Land Tax (SDLT)

Anyone who buys property in the UK as an investment has to pay stamp duty. If you're a non-UK resident, you’ll pay an additional 2% stamp duty surcharge on top of the usual rates. For investment properties, you’ll also pay the 3% surcharge for second homes.

If you want a Stamp Duty Calculator, download our ROI calculator here for free.

Stamp Duty Fee: For a £125,000 property, stamp duty will cost you £8,750.

3) Legal & Professional Fees

• AML Checks: £99 per person. Estate agents will need to complete AML (Anti-Money Laundering) checks on anyone buying UK property.

  
  

• Conveyancing solicitor: £1,500 to £2,500 for freehold properties with one title deed. If you are purchasing leasehold properties the price will go up a few hundred pounds. If there are a few titles involved in the one property (I’ve seen it...) then it will be even more expensive. You get the idea, the more complicated it is the more money the solicitors will charge. If you want a good solicitor, reach out to us here and we’ll connect you with ours.

  
  

• Searches & Land Registry: £350–£500

  
  

• Surveys: £500–£800. These are optional, but wise. If you want to use the surveyor that we use, contact us here.

  
  

• Independent legal advice session (Some lenders will require this): £200 to £350

  
  

• Tracked postage of documents with wet signatures: £30

  
  

Legal & Professional Fees: £2,679 to £4,279

4) Property Sourcing/Consulting Fees

If you will be finding properties, analysing the numbers, viewing them and pricing up refurbs whilst overseas ... you can skip this section.

For everyone else using a property sourcer/consultant to take care of all of these important tasks back in the UK, you’ll need to add their fee into your calculations.

Property sourcers, including us, charge anywhere from £3,999 all the way to £5,999 depending on the type of service.

This may seem high, but when you calculate the costs of the time it would take you to find a property, then the cost of flights & accommodation to view properties in the UK, as well as the cost of any mistakes ... the sourcer/consultant option starts to look more attractive.

We have various sourcing options that our clients can choose from, from a DIY mentoring sourcing plan, to a full hands-off end to end bespoke sourcing plan.

Maybe you don’t need full sourcing support, but you do need some advice from an expert in the form of consultations. Make sure you’re adding these fees into your budget. Our clients pay £95 for a 45-minute no-holds-barred 1:1 session with us for our advice and expertise.

No matter what support you need, we have it here. Whether you want to do everything yourself, or whether you want us to do everything for you. Check them out, and add the cost into your budget calculations.

Sourcing & Consultancy Fees = £4,999

5) Mortgage Broker Fees

For expats or overseas buyers, most specialist mortgage brokers charge a fee.

Expect to pay around £1,500 as a standard fee for an expat specific broker. If your case is pretty complex, then there may be added fees to compensate the broker for the additional time.

This is a fee, but I always see it as an investment. If you have a good broker, this fee is more than worth it as they will save you money in the short and long-term on fees and interest rates. Not to mention, many brokers have access to lenders that you as an expat wouldn’t find directly.

If you want connecting to a good broker, contact us here.

Mortgage Broker Fees = £1,500

6) Mortgage Application Fees

Just to apply for a mortgage, the lender will ask you to pay for the valuation fee on the property. This fee pays for a RICS surveyor to go out and value the property to make sure you are not overpaying for it.

Generally, you’ll pay £250 to £400 depending on the property. For a property worth £125,000, you’ll pay around £275.

The lender also may want you to translate documents from their language into English, and they want this done by an approved translator. If it’s a big document, like a rental contract, you may have to pay around £500.

Mortgage Application Fees = £775

7) Refurbishment Costs

If you’re buying a property that is either tenanted or in great condition, you may not need to add any costs here. These costs really depend heavily on the state of the property, the work needed and the location. Contractors in the north are cheaper than contractors in the south of the UK.

For this reason, I won’t give a figure here to avoid confusion.

Refurb & Furnishing Fees = Depends on property

8) Cost of Tenanting Property

Once you’ve completed on the property, in order to get it generating money, you’ll need to advertise it to tenants. If you get professional photos done, this can cost £250.

Before you get professional photos taken, you may need a cleaner to make the windows, doors and rooms look great, which can cost up to £100.

To put the property on the likes of OpenRent, Rightmove & Zoopla you’ll need to pay £69 which includes contracts and referencing.

Property Tenanting Fees = £419

9) Contingency Fund

Things happen in property that you would have never thought of. This is the case for experienced investors, and definitely new investors.

Therefore, you’ll want an emergency buffer just in case “Property” happens:

• Unexpected repairs

• Dodgy tradesmen

• Early months with no rental income

We suggest you have at least 5% of the total cash input needed as a contingency.

What’s The Total?

Here’s a realistic cash outlay for a £125,000 UK investment property as a non-resident buyer who holds a UK passport:

Item	Estimated Amount
25% Deposit	£31,250
Stamp Duty	£8,750
Legal Fees & Surveys	£3,279
Sourcing/Consulting Fees	£4,999
Mortgage Broker	£1,500
Mortgage Application	£775
Tenanting Property	£419
Contingency Fund	£2,549
Total Cash Needed	£53,521

Of course, your numbers will vary depending on the property type, location, strategy, lender, and your investment goals. But this gives you a realistic starting point for our example property.

Can I Do It With Less?

Yes, but you’ll need to:

• Target cheaper properties

• Not use sourcing or consultancy services (but make sure you don’t make costly mistakes!)

• Work with cheaper solicitors, which can sometimes mean low quality

• Only work with lenders that offer 20% deposits (may mean higher interest rates)

• Find properties with little or no refurb needed (harder to find)

• Focus on properties that are already let out (harder to find)

Can I Buy from Overseas Without Flying to the UK?

Absolutely. At Expat Property Investments, we help British expats and international buyers purchase UK investment properties without setting foot in the UK.

We handle everything from strategy development, property sourcing, mortgage application, purchase management & admin all the way up to completion.

The property is 100% yours, we just handle all of the legwork involved whilst giving our expertise input to walk you through the process.

What to Do Next

If you're serious about buying a UK investment property while living abroad, here's how we can help:

• Book a free 30-min call with Dan, our UK property expert, to ask your questions

  
  

• Download our FREE ROI Calculator to help you know how much money each property will make you before you book a viewing

  
  

• Download our FREE UK Property Investment Checklist to make sure you are covering all bases.

  
  

• Browse our UK Property Sourcing & Consulting Store if you want some support, starting from as little as £89.

Final Thoughts

Buying a UK investment property from overseas is absolutely doable, and often very profitable, but you need to make sure you have enough cash to complete on a deal before making an offer.

Know your numbers, prepare your cash, and ideally work with someone who knows the UK property market inside out.

Want our help for your next UK investment property? Book some time with Dan here.