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Buying Property in UK

We will not go into much detail on buying property in the UK for a few reasons. Firstly, if you’ve just arrived in the country, no lender will do business with you for several years until you’ve established a credit record. Secondly very few people arriving in the UK have sufficient money to put down as a deposit. Thirdly it takes most people quite a lot of time to come to terms with their new lifestyle and surroundings before deciding where to buy a property. If you are able to put down at least 25% of the value of the property in question, then you will find more lenders willing to deal with you. Using a mortgage broker is a good idea. An useful website to help you find a suitable mortgage is:

http://www.fast-mortgage.net

About 75% of people in England own their own home. This is because of easy access to mortgages and long term repayment schemes in a highly competitive lending market. It is often cheaper to buy a home than to rent in the UK. Repayment schemes run as long as 30 years. You will need to contact several mortgage lenders to see what kind of deal they can offer you. Only once you’ve found a lender to your liking can you then consider taking action.
The first practical step to buying a property is to decide on the where you want to live. Then you investigate the properties on sale in the area you’re interested in through the local estate agents. Hopefully you can afford the area, otherwise you will have to find another area. You register with an estate agent and they make a note of your requirements. They should be able to immediately provide a number of house’s details for you to look at. Once you have selected one or more properties of interest they will arrange with the property owner for a mutually convenient time for you to view the property.
Once you have identified a property you wish to buy, you instruct the estate agent to convey your desire to buy. Remember to stipulate that your offer is subject to survey and contract. Under British law, until contracts are exchanged, either party can amend or withdraw from the sale. It normally takes 6 weeks from submitting the offer until the contracts are exchanged. The time from ‘exchange of contract’ to possession of the property can vary as it depends on either party’s wishes. This plays out up and down the line of property owners and is called a daisy chain.
When buying a property you will need a solicitor or conveyor to do the legal work, which includes the title search and deed registration. It is also advisable to hire a surveyor to check out the property structurally for you. If you are taking out a loan, most lending institutions will ask for a surveyor’s report.
Be warned though, that in England during boom periods, “gazumping” is a common occurrence. “Gazumping” is the practice of a seller agreeing to an offer from a buyer, but then accepts a higher offer from another buyer later. Gazumping does not happen in Scotland as once each party has agreed to the sale, neither party can withdraw. It is imperative therefore that you have a survey done before making an offer on a house in Scotland.

Taxing Joint Tenancy Property

Generally, the value of all joint tenancy property is included in the estate of the first joint tenant to die, except for the proportion the executor can prove was contributed to its acquisition by the surviving joint tenant and/or as a gift by a third party to the credit of the surviving joint tenant. If the surviving spouse and the decedent were the only joint tenants, only one-half of the value of the joint tenancy property will be included in the estate.
As result of the marital deduction, property held jointly by spouses with rights of survivorship does not trigger any estate tax in the estate of the first spouse to die. Technically, only one-half of the jointly held property would be included in the estate, and that one-half would be excluded by the marital deduction. The act similarly applies to tenancies by the entirety.

Federal Gross Estate

The federal estate tax is a tax on all property of a deceased person. The reader should be aware that these provisions are subject to change. The Economic Recovery Act of 1981 made major changes in the estate and gift tax laws. Additional changes were made more recently. The Economic Growth and Tax Relief Reconciliation Act of 2001 imposed complex changes that will be phased in between 2002 and 2009 with outright repeal of Federal estate taxes in 2010. However, the new law specifically provides that it will have no effect on estates of decedents dying after December 31, 2010, and the exemption will be $1,000,000.
The gross estate includes all real and personal property, whether tangible or intangible. These properties include the following:
• For decedents dying after 12/31/1981, the estate of the first spouse to die will include one-half the value of joint tenancy property, regardless of which spouse furnished the consideration for the property. This rule applies only where the spouses are the only joint tenants.
• All death benefits under life insurance policies on life of decedent owned or controlled by him or payable to his estate and cash values of all life insurance policies owned by him on lives of others.
• Lifetime gifts are no longer included in the gross estate, although the taxable portion will be included in the tax base for estate tax computations.
• Property over which the decedent held a general power of appointment.
• Property given away during life in which the decedent retained some control or a life estate.  Revocable trust assets are included because the deceased retained control until death.
The property must be appraised at its fair market value, or if the executor elects, certain qualified property may be appraised at its current use value. Current use values for qualified property and the current market value will be discussed later in this material.  Fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to sell or buy.