London property buying guide for Kuwaiti investors

Arranging your finances

Ensure you assess the best ways to fund the property purchase before commencing the search. Most Kuwaiti investors opt for all-cash purchases or a mix of equity and offshore borrowing, which allows them to quicken the transaction process and solid negotiation power.

However, leveraging UK or international mortgage financing options can also be a smart choice, especially if you aim to maximise liquidity or build a larger portfolio. London’s property market moves at a swift pace – being financially ready gives you an edge when you find the opportunity.

Open a UK bank account and consider currency transfer options with favourable FX rates.

Mortgage eligibility

Kuwaiti investors are eligible for mortgages in the UK, whether they reside in Kuwait or abroad. Most banks also offer up to 70% of the property’s value; however, note that terms may vary depending on the lender’s requirements and client profile.

To increase your chances of eligibility, make sure you have strong credit and income profiles, sufficient liquid assets and proof of stable employment or business ownership.

Documentation

It is important to note that the property-buying process in the UK is documentation-driven. As a Kuwaiti investor, you need to be prepared with a valid Kuwaiti passport and Civil ID, proof of Kuwaiti address which can either be a utility bill or bank correspondence, three to six months of personal bank statements, salary slips or business income verification, reference letters from your accountant, lawyer or bank and lastly, evidence of source and wealth.

Narrow down your search

Most investors from Kuwait prefer Mayfair, Belgravia and Knightsbridge for their ultra-luxury lifestyles. Others are drawn to regeneration zones like Nine Elms, Canary Wharf, Nine Elms, Acton, Wembley Park and White City – areas famous for strong long-term capital appreciation and rental yields.

For those seeking accommodation for their children, proximity to universities such as Imperial College or UCL is an important factor.

Know your budget

Defining a budget helps streamline your options. In addition to the purchase price, make sure you factor in additional expenses and fees such as Stamp Duty Tax, which will include overseas buyer surcharge, legal and solicitor fees, mortgage broker and valuation fees, maintenance charges for leasehold apartments and lettings and management fees, if rented.

Currency fluctuations should also be factored in.

Viewing & shortlisting properties

Whether you are visiting London or browsing relevant property options from Kuwait, Benham and Reeves assists you with a comprehensive viewing experience. We can set up video walkthroughs and virtual tours as well as pre-recorded virtual tours. We also offer detailed investment packs with ROI and rental demand analysis.

Our experienced team of agents can represent your interests and attend private previews, developer events or exclusive launches. This process ensures you shortlist only the most viable, high-performing assets.

Making an offer & reservation

Once you select a property, your Benham & Reeves advisor will negotiate the offer and assist you with the reservation process. For new build properties, you will need to typically pay a reservation fee between £2,000 and £5,000 to lock the price. For resale, negotiations with the seller begin after the offer is made.

Instructing the Solicitor

When buying property in the UK, a legal representative is required. An experienced solicitor or conveyancer will handle all legal formalities on your behalf, including title checks, contract reviews, compliance with UK property laws and anti-money laundering checks. Benham & Reeves can also introduce you to trusted legal professionals within our network.

Acceptance of the offer

Once your offer is accepted by the seller, both parties proceed with the legal steps. At this stage, timelines are set and your solicitor begins due diligence while the mortgage is finalised, if applicable.

You will also be required to submit a valid ID and proof of funds and pay a deposit of 10% into escrow. Benham & Reeves works closely with all parties to ensure timelines are met.

Conveyancing

This step includes legal measures such as checking if the property title is clean, ownership is verified and the property is mortgage-free. Any sort of restriction is also analysed. Your solicitor will coordinate with the seller’s solicitor and ensure all documents are in order. The average conveyancing period is anywhere from six to twelve weeks.

Exchanging contracts

This stage requires you to pay a deposit, usually 10%, to the seller’s solicitor. The sale becomes legally binding and a completion date is set. In case you choose to withdraw after this point, the deposit amount may be forfeited.

Snagging or Inspection of the property

Snagging is a crucial step when dealing with new build properties. This check is carried out for defects such as cracked plaster or faulty fittings. Snagging is an extremely crucial step for overseas buyers, as it ensures the delivered unit is in perfect condition.

Benham & Reeves can organise professional snagging inspections on your behalf and liaise with the developer to rectify any problems.

Completion of purchase

On the agreed-upon completion day, the remaining balance is transferred and the property legally becomes yours. The keys will be handed over to you and the property registered with the UK Land Registry.

Do not worry if you are not in London at the time. Our team ensures a smooth handover and lets, if applicable, remotely.

Stamp Duty

Stamp Duty Land Tax (SDLT) is applicable on all sorts of property purchases in the UK. As a non-resident, you will be required to pay standard SDLT rates based on the property value in addition to the 2% overseas buyer surcharge. In case the new London property is an additional home, a 3% surcharge is payable.

Within our network, we have many reputed expert tax advisers who are familiar with UK-Kuwait tax regulations and potential cross-border reliefs. You can reach out to us to get more information on this.

One stop service with Benham & Reeves

Benham & Reeves is equipped with over six decades of experience helping overseas clients invest in London property. We also have a dedicated office in Kuwait for seamless local support.

Our turnkey solutions include bespoke property sourcing, off-plan and resale opportunities, legal and tax consultation through partner firms, furniture packages and interior design, lettings and full-service property management.

Whether you are a first-time UK property buyer or a seasoned investor, our deep understanding of both the London market and savvy Kuwaiti investor expectations ensures an effortless experience.

Speak to our Kuwait office today to arrange a free, no-obligation one-on-one consultation.