Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.
- It is of paramount importance to seek independent advice from an overseas solicitor.
- You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender. In the USA Bonded Title Companies are used, they will check and clear title on your and the lender’s behalf.
- Before signing the sales contract, the bank will require a copy of this document to be forwarded with the relevant application form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is normally legally binding.
- You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a property in America. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes will be approx. between 4% – 5% of the properties purchase price.
- Please be aware that the solicitor or notary may be incorporating costs for assigning the mortgage within their charges, and you should establish the actual cost before proceeding with a loan application.
- All American mortgages should have a suitable life assurance policy assigned to them. It is not mandatory but strongly advisable.
- Properties can be purchased either individually or in joint names to a maximum of four people, or in the name of either a US or Offshore Company.