There are no restrictions to foreigners buying property in New York.
Once you’ve found a property you’d like to purchase, the agent will make an offer on your behalf. The seller's agent will likely offer a counter-bid, beginning the negotiations. At this point it is recommended that the buyer enlists the services of a seasoned NYC real estate attorney. Once both parties have agreed upon an acceptable offer, the seller's attorney will draw up a contract for the buyer's attorney, and the buyer will in turn sign said contract and submit it for execution.
The closing process entails a final inspection of the real estate, the completion of pending financial transactions, and the creation of an official deed/title for your property. Buyers can expect to pay at least 20-25 per cent for a deposit, as well as 2-3 per cent for legal fees and taxes. If you prefer, you can engage the services of a solicitor in the UK to look after your interests. See the Law Society for a list of professional conveyancing solicitors.
Budget 3-4 per cent for all purchase costs and fees. Based on a £100,000 property you should expect to pay the following:
| Title search and insurance: | £500-1,000 |
| Recording fees: | £500 |
| Lawyer’s fees: | £2,000-3,000 |
| Agent’s fees: | n/a – seller pays |
| TOTAL | £3,000-4,000 |
GlobalPropertyGuide.com reports that when a non-resident alien sells a property, the buyer is required to withhold 10 per cent of the selling amount as tax. The withholding tax is later credited as advance payment for capital gains tax. The withholding tax is levied against the capital gain which is charged at rates between 10-20 per cent depending on the size of the gain. A double taxation treaty between the UK and USA means you will not pay capital gains tax (CGT) in both countries - only in one and at the higher amount.
Non-residents are generally able to secure a mortgage of up to 70 per cent LTV through a UK-based broker against a property in New York. Repayment and interest only mortgages are generally available. The maximum term of any mortgage is 30 years.
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Amanda Lamb is on her travels finding you the ideal location for your new house
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