Helping entrepreneurs from Brazil to buy a house in UK

My wife and I really enjoyed living in the UK. I am 38 years old, my wife Marina is 34, an age when you begin to appreciate comfort, cosiness, security and stability. We both work in IT, our income is good, but we have been living in a rented flat for several years. So recently we started thinking about buying our own home and obtaining ILR status.

Edoardo and Marina

IT specialists from Brazil

Clients’ names and photos have been changed

Edoardo and Marina moved to the UK from São Paulo, Brazil, a few years ago. The company they founded develops and implements artificial intelligence technologies. Major investors have already shown interest in them, and there are good prospects for entering the market.

The couple live in the UK on an Innovator Founder Visa and did not initially plan to move to the country permanently. But after several years in the United Kingdom, their priorities changed. Edoardo and Marina gradually settled in the UK, discovered the country’s traditions and culture, made connections, and met interesting people. Therefore, they decided that they did not want to return to Brazil. To legalise their permanent residence in the UK, Edoardo and Marina plan not to renew their Innovator Visa, but to apply for Indefinite Leave to Remain (ILR) status.

It is not necessary to buy property to become a permanent resident. However, owning your own flat or house is proof of your serious intentions to stay in the UK. Owning your own home will save you money on rent, reduce the likelihood of being refused a bank loan and simplify many business transactions.

Another important argument in favour of buying a home is the prospect of expanding the family. Edoardo and Marina do not have children yet, but the situation may change very soon. Their parents are still in Brazil and are getting on in years, and if they bring them to the UK, they will need somewhere to live. That is why Edoardo and Marina are seriously considering buying a house.

The source of funding is the sale of their spacious flat in the centre of São Paulo. The money should have been enough, but the couple were afraid that transferring such a large sum from abroad would raise questions from the regulatory authorities. Their status as foreigners could also create problems with the legal formalities of buying and selling property in the UK. To overcome all these difficulties, Edoardo and Marina decided to seek help from Imperial & Legal.

Solution

After reviewing the case, we explained to the clients that foreigners have the same rights as citizens and permanent residents in any real estate transactions in the UK (purchase, sale, exchange, investment). If the source of funds is legal and all formal requirements are met, there will be no problems. Therefore, Edoardo and Marina’s concerns are unfounded.

Transferring a large sum of money from Brazil could indeed cause problems. We did not consider the option of buying a house in the UK with cash. Such an attempt would certainly be regarded as suspicious by the bank’s financial monitoring service. The same can be said for any options involving splitting a large payment into several smaller ones.

The only way to reduce the risk of a transaction being frozen is to ensure maximum transparency. This means that Edoardo needs to provide documentary evidence of the source of the funds and refrain from underestimating the transaction amount on paper. To further mitigate the risks, we contacted the British bank and asked them to prepare a list of supporting documents.

The second stage of Edoardo and Marina’s assignment was to purchase a house in the suburbs of London. Our clients had sufficient funds, so they did not need to borrow money. The absence of a mortgage requirement simplified our actions, but strict control at every stage remained.

The main stages of Edoardo and Marina’s assignment were as follows:

• selecting an area in the suburbs of London and a specific property (sources of information: our own database, independent estate agents, partner companies operating in this market);
• making a formal offer to the owner, agreeing on the price and terms of the transaction;
• selection and appointment of an independent solicitor to check all documents (Solicitor/Conveyancer);
• technical and legal inspection of the property;
• exchange of contracts, payment of the initial deposit (in the case of Edoardo and Marina, we agreed on 5% of the amount, usually 10%);
• finalisation of the transaction — final settlement, registration of ownership in the registry, transfer of keys, payment of government fees and duties.

How we worked on Edoardo and Marina’s case

What our clients got

Buying a house in the UK is a complex process involving many unknowns. In the case of Edoardo and Marina, the main difficulty was related to the bank transfer from Brazil. Searching for a house in the UK is a standard service for our specialists; we know how to approach it and what legal tools to use.

We have once again proven that foreigners without ILR status can buy property in the UK. However, in such cases, it is extremely important to have appropriate legal support and to take into account all the requirements of the receiving bank. This is the only way to avoid difficulties associated with KYC/AML.

Edoardo and Marina were able to move into their new home just two and a half months after contacting Imperial & Legal. We took care of all the legal and organisational hassles, finding suitable property, agreeing the details with the owner, and preparing the paperwork. The action plan developed by our specialists allowed us to optimise time and reduce additional costs by eliminating the element of chance.