Many Dutch people who go abroad choose England. It is a country that is very close to the Netherlands. Who has never been to London to enjoy a weekend of shopping? Most people who are familiar with England therefore increasingly choose to go to emigrate to England and buy a house there. Have you also thought about an affordable moving company? But how does this work in the country? Read on for more tips and sharp deals.
Looking for houses
It is wise to enter a search query on the internet and search for a house in England. These special websites offer many properties and often this is via an estate agent.
Please note that the prices are of course always stated in English currency, so pounds and that in Euros they will probably be a little more expensive. You can also choose to contact an estate agent directly so that you are assisted during your search. Then you can, for example, request information about your favorites and if available add them to your list for viewings.
What should you pay attention to?
Mentions on websites or by real estate agents are of course often positive. That is why it is wise not to rush into buying a house. Go and have a look around the neighborhood yourself and also look at the prices of houses in the area. That way you can compare them.
When you move to England you will notice that the country has many different types of houses. Think of terraced houses, semi-detached houses, modern townhouses or even old castles! Also pay attention to the fact that many houses in England are located in conservation areas or are listed buildings. In this case, for example, you are not allowed to renovate there.
Where are you going to live in England?
Of course it also depends on where you are going to live in England. Leicester real estate is definitely cheaper than for example real estate in London.
Leasehold or purchase?
In England, houses are leasehold or for sale. Therefore, when 'buying' a house, you should pay close attention to what applies to your home. With leasehold, the house becomes yours, but the land around it does not.
Leasehold
As you have read, with leasehold the land around the house is not yours. In fact, you buy the house, but not the land on which it is built. The lease can also last for years and you pay an annual amount to the tenant of the land. The tenant also often has to be paid for maintenance and repair services.
Cultivating the soil
After the lease is finished, the land becomes yours and you can finally start growing. When you are still leasing, you cannot just grow something on the land and you need permission from the tenant.
How long does it take to pay off the leasehold?
Leasehold often lasts for years and here the ownership goes back to the owner. This is limited to the duration of the lease. For an old house this will be 80-100 years for example.
Technically the land is not yours
In fact, you pay a lot for a house that you want, but you can't really call it your house, because technically it's not your house. You rent the land as it were. It often happens that tenants abuse the situation and pass on high costs.
Buying a home
In England, of course, you also have the right to own property. Tenants simply have the right to buy land. This is seen as joint ownership. For example, an apartment is sold with a 'freehold', so a part of the ownership rights. However, there are very strict rules attached to this and the procedure for this can take a very long time. Owners of such a 'freehold' can manage the property together or choose a manager.
Leaseholders
In 1993, a law was passed in the country to allow 'leaseholders' to extend their lease for 90 years. If the 'freeholder' decides to sell his share, he must first give the other 'freeholder' the right to buy the house.
Negotiating real estate
In England it is very normal to negotiate the asking price of a house. It is therefore common for many houses to be sold for less than the asking price. Figures have shown that on average about 5% less is paid. It is therefore wise to look carefully at the houses in the area and adjust the height of your offer accordingly. It is also good to look at how long a house has been for sale, because it is often the case that a house that has been for sale for a longer period of time is more likely to accept an offer. If your offer is rejected, you can make another offer after about 10 days.
An offer is made in writing, just like in the Netherlands.
Mortgage in England
Due to Brexit and all the uncertainties surrounding it, not only have house prices stopped rising, but house prices have also fallen sharply. This makes it attractive for many people to buy a new home in England. Popular criteria play an important role here and people often choose either large popular cities or the countryside. These are the popular locations in England.
Applying for a mortgage
In the UK, your credit score is taken into account when you apply. This shows your creditworthiness. The assessment criteria differ per lender and it depends on them which credit score is sufficient. Therefore, look at different providers and see what is best for you.
So basically, the higher your score, the more reliable you are and therefore easier it is for you to get a loan.
What determines credit score?
There are 5 factors that are looked at to determine your credit score:
- Current loans (30%)
- Type of loans (15%)
- Available credit. So the credit limit and current credits. (11%)
- Your credit history and how much it is. (6%)
- Your payment history (35%)
Apply for your mortgage yourself
In England, you can apply for your mortgage yourself. Do you need extra advice? Then you can hire an estate agent. In England, 'public notaries' and 'solicitors' are used to legalize documents. These are lawyers who draw up wills and property transactions.
In England, two types of mortgage are used.
Repayment
With a certain term, you pay back a portion of your loan with interest every month. If you pay on time, you will be finished paying off at the end of the certain term. You can compare this mortgage with a linear mortgage as we know it in the Netherlands.
Advantages and disadvantages of repayment mortgage
With this mortgage you will have more certainty. You pay off neatly every month so you know that you will be finished paying off on time. It is also the case that because you pay off part of your debt every month, your interest amount also decreases. Which is of course a big advantage!
Interest-only mortgage
With an 'interest-only mortgage' you can only pay interest during the term. This means that your monthly payments are a lot lower than with the aforementioned 'repayment'. You do have to make sure that your entire debt is repaid at the end of the term. This mortgage can be compared to the interest-only mortgage in the Netherlands.
Advantages and disadvantages of an interest-only mortgage
With this mortgage, you have no certainty that you will have paid off everything after the term. This means that if you have not been able to pay off, you will have to pay your remaining outstanding debt in one go after the term. However, with this mortgage you can choose how much and how you want to repay your loan, so you have more control. However, this mortgage is of course more expensive, because you do not repay enough each month. Your debt remains the same, which means that you have to pay more interest at the end of your term.
Finally..
Do you have other questions about emigrating to England or do you just want more information? Then take a look at our website. We have many articles that can help you with your emigration.
