Buying Property While Deployed Abroad: What Serving Personnel Need to Know
Serving personnel deployed overseas are not prevented from purchasing property in the UK. Transactions can be managed remotely by specialist solicitors based in the UK, who can arrange for the transaction to be progressed electronically without the need for you to attend any offices in the UK.
Whilst telephone calls can be difficult for personnel, the transactions can be managed via special case management systems and emails.
What schemes are available?
There are many schemes and support options available to serving personnel when purchasing property.
Forces Help to Buy
Eligible service personnel can take advantage of the Forces Help to Buy Scheme. Those eligible can borrow up to 50% of their annual salary (capped at £25,000) completely interest free to put toward their deposit and legal fees. More information can be found in JSP 464.
Shared ownership and affordable housing options
The Shared-Ownership Scheme allows you to purchase a percentage share of a property and pay regulated rent to a housing association for the remainder.
The First Homes Scheme allows first time buyers in the armed forces to receive priority access of specific new build properties, as well as a discount between 30% – 50%.
Both Help to Buy ISAs and Lifetime LISAa can provide a 25% bonus for first time buyers towards their purchase.
Some developers also offer tailored military deposit contributions.
Other support available to Armed Forces personnel
The Joint Service Housing Advice office (JSHAO) can provide impartial advice to service personnel on their civilian housing options.
Some high street lenders also offer tailored mortgage products for military personnel, offering advisors that can offer specialist support and advice.
How does conveyancing work for serving personnel?
Once you have had an offer accepted on a property, you will need to appoint a residential property lawyer to act in the conveyance of the property.
The property lawyer will send you some initial paperwork to complete together with ID checks. Most lawyers are now using specialist Apps and online services that will allow you to complete the initial paperwork remotely in any part of the world. You should consider asking your property lawyer if they have this facility when making your initial enquiries.
As the transaction moves along, your property lawyer will be able to keep you informed either by email or their case management systems.
When it comes to signing documents, your lawyer will be able to either email these across to you, with a request the hard-copies are posted back, or arrange for these to be signed electronically. You can discuss with your lawyer the arrangements to find a solution most convenient for you.
If you will have no internet access where you are deployed or will find it difficult to communicate, you could consider appointing a trusted representative as your attorney to manage your purchase and sign documents on your behalf.
What documents will you need?
The documents required will very dependant on the transaction, your lender requirements and any schemes you are taking advantage of.
As a general rule, your lawyer will require the following:
- Proof of identity
- Proof of address
- Military employment details
- Payslips and income evidence
- Bank statements
- Mortgage documentation
- Power of attorney documentation where applicable
What should you watch out for?
We would advise you get your documents prepared as early as possible for your lawyer to avoid any delays or issues in acting when you are deployed.
You should give your lawyer guidance on the best way to contact you when you are deployed, as well as any periods that you are likely to be uncontactable as well as possible time-zone delays.
You may experience delays in your purchase because of obtaining documents and information from you during your deployment, you may therefore find it useful to provide your lawyer with an authorised contact in the UK who may be able to assist in your absence. However, please be aware that unless your contact has been appointed as your Power of Attorney, your lawyer will not be able to take instructions from them.
You will need online banking access if you wish to exchange and complete whilst deployed to send your lawyers your deposit and completion funds.
If completion occurs whilst you are still deployed, you should make arrangements with the estate agents to hand over the property and collect the keys on your return to the UK.
If you are posted overseas for more than 6 months you might initially trigger the Non-UK resident SDLT surcharge. However, serving members of the armed forces usually qualify for relief, meaning you should be treated as a UK resident.
How can Goughs help?
Goughs have specialist knowledge and experience assisting military personnel deployed overseas. We can offer remote communication services which adapt to your needs and practical relevant legal advice. You can be confident that your transaction will progress smoothly whilst you are overseas.
