London is considered one of the highly sought-after property investment hubs worldwide, including for Indian investors. The capital city of the United Kingdom offers buyers a range of benefits, including financial and political stability, lucrative returns on investments, cultural diversity and world-class educational opportunities—ideal for growing capital potential, rental yields and prestige.

Investors further benefit from secure ownership rights, a range of properties, thorough transaction transparency and an urban lifestyle. Unlike many international markets, buying a property in the UK as an Indian investor is pretty straightforward.

To assist Indian buyers in navigating this process confidently, Benham and Reeves has been catering to overseas investors for almost 65 years. With offices in Mumbai and Delhi, our expert agents will offer you localised assistance and tailored support.

We will handle almost everything on your behalf - right from selecting the best property and legal formalities, coordinating with solicitors, managing property handovers and even furnishing homes for rental. Apart from the buying process, you can take advantage of our letting services, property management, tax advisory and eventual resale guidance — all in all, making London property ownership hassle-free.

Another factor that eases this process is the shared use of English as the business language.

If you are feeling overwhelmed with the process of acquiring a property in London, this guide should provide you with an in-depth roadmap tailored specifically for Indian landlords.

Step 1 - Getting your finances sorted

As an Indian landlord, remember that adequate financial planning is the first step to ease the buying process in the London market. You must be aware of the complexities of transferring funds abroad. Systematically prepare your finances in advance to carry out a hassle-free transaction before remitting money from India. Covered below are the different channels through which Indian buyers can buy a property in London -

1. Liberalised Remittance Scheme (LRS)

LRS is an extremely beneficial scheme for Indian residents as they are permitted to remit up to $250,000 per person, per financial year (April to March), including minors, for permissible capital or current account transactions. This also includes property purchases. You can club the LRS limits of up to four family members to collectively remit up to $1 million annually and jointly purchase the property. Here’s an example -

Remitter/Buyer Year 1 Remittance Year 2 Remittance
Family Member 1 USD 250,000 USD 250,000
Family Member 2 USD 250,000 USD 250,000
Family Member 3 USD 250,000 USD 250,000
Family Member 4 USD 250,000 USD 250,000
Total USD 1,000,000 USD 1,000,000

2. Eligibility under FEMA Section 6(4)

Under Section 6(4) of this act, NRIs or non-resident Indians have permission to buy property overseas. Thanks to this scheme, Indian citizens with NRI status can own international properties without any restrictions.

3. Inheritance or gift

Another option to finance the property is to receive money through inheritance or as a gift — provided the total remittance does not exceed $250,000 per person, per financial year (per LRS limits).

4. Resident Foreign Currency (RFC) account

As an Indian resident, you can maintain a Resident Foreign Currency (RFC) account in India and use the funds parked in this account to acquire property abroad.

5. Joint ownership with relatives

Another way to finance the purchase is by co-owning the property with a relative. However, ensure no financial outflow from India violates LRS guidelines.

6. Through an Indian company

An Indian company with an overseas office or a UK-registered branch can easily purchase property in London. This purchase can be shown for business purposes and can include staff accommodation or be a part of operations.

Step 2 -Mortgage eligibility

Before purchasing a property, especially in an overseas country, it's crucial to be aware of the rules surrounding mortgages, including in relation to the Foreign Exchange Management Act (FEMA). FEMA restricts Indian residents from obtaining mortgages for properties outside India without prior approval from the Reserve Bank of India (RBI). However, there are a few exemptions -

The FEMA restrictions do not apply to the following categories -

  • Indian residents who are foreign nationals and own immovable property outside India
  • Indian residents who acquired property abroad before 8th July 1947
  • If the property was obtained through a lease of no more than five years

a. Non-Resident Indians (NRIs) and property ownership

NRIs are permitted to buy and hold immovable property in London or any other country outside India under Section 6(4) of FEMA. NRIs are not bound by the same mortgage restrictions as Indian residents — this allows them to purchase and manage properties overseas without additional RBI approvals.

b. Indian residents owning overseas property

An Indian resident classified as an NRI at the time of purchase can also hold, own, transfer, or invest in immovable property outside India. They can even do so if the property was inherited from someone residing outside India.

Step 3 - Documentation

Before purchasing a property in London as an Indian investor, there are certain documents you’ll need to prepare to carry out a smooth process. These documents are crucial as they will result in a seamless transaction as per both the UK and Indian laws and help verify your identity, address and source of funds. Here’s a list of everything you’ll need -

  • A valid passport is mandatory. A UK visa is not mandatory to complete the transaction
  • Prepare Utility bill, driver’s license, tenancy agreement, bank/building or credit union statement - one of the following documents, dated within the last three months
  • Submit bank statements from the last 3–6 months for the account where funds will be remitted from
  • Supporting documents which include income from salary or business profits, funds received as gifts, fixed deposits or property sales proceeds. Liquidation of an investment portfolio, company profits/dividends or inheritance, payout from insurance and retirement income
  • Form (A2) Annexure 1 serves as a declaration for remittance. Remember to submit this form along with other documentation – required by your local Indian bank facilitating the transaction.
  • Certify all documents by either a licensed conveyancer or solicitor, chartered accountant, lawyer, attorney or notary

Step 4 - Narrow down your search

As an investor, defining your preferences is a vital first step. This decision ensures alignment with your goals – whether for personal use or rental income. Consider the following factors when making this decision -

Factor Personal use Investment purpose
Purpose look for options in neighbourhoods with well-regarded schools, local facilities and transport links one or two-bedroom properties are popular with tenants and offer higher rental yields thanks to high rental demand
Property size consider the long-term needs of your family and don’t forget to calculate guest or an office room, too smaller units (one or two beds) are suggested - they are easier to rent & maintain
Location opt for affordable family homes on the outskirts with outdoor spaces + improving connectivity select high-end properties near Central London and surrounding areas for lucrative rental returns
Property type older homes, often situated in established regions, flaunt a certain historical charm — however, they may require maintenance invest early in off-plan properties to benefit from capital growth another option is newly completed developments with modern amenities
Leasehold common for apartments and suitable for personal use — despite not owning the land outright excellent investments, with new developments offering leases between 125 & 999 years

Step 5 - Know your budget

Purchasing a property in London as an Indian landlord includes shelling out certain charges and expenses you need to be aware of. Calculate your budget by factoring in the additional costs beyond the purchase price. Under the Liberalised Remittance Scheme (LRS), funds remitted from India also accounted for these costs. Here’s a better breakdown -

  • Purchase price of the property after any discounts
  • Legal fees for UK solicitors is £1,800 – £4,000 approx.
  • Annual service charge is between £3–6 per sq. ft.
  • Annual ground rent is £200–600 (first-year payment will be required upfront with the purchase price)
  • Stamp Duty Land Tax (SDLT) applies only to non-UK residents (based on property value) -
    • Property value £300,000 - Tax @6.67% (£20,000)
    • Property value £500,000 - Tax @8% (£40,000)
    • Property value £700,000 - Tax @8.57% (£60,000)
  • Consider another £500–£700 approx for any transaction charges, solicitor fees, insurance, developer engrossment fees and due diligence costs
  • Mortgage lender’s fees is ~1% of the loan amount
  • Furnishing services are optional, but you can include custom designs for Indian tastes. Check out InStyle Direct for details

Step 6 - Viewing & shortlisting properties

It goes without saying that viewing a property before purchasing it is extremely important. If you're an Indian landlord interested in buying property in London and would like any sort of assistance, reach out to Benham and Reeves for tailored solutions. We provide two types of viewings -

1. If you are planning a trip to London, with over 19 local offices across central London and a team of over 200 professionals, we can arrange guided, physical tours. We can also design an itinerary to cover all shortlisted properties once we have your confirmed travel dates.

2. If you prefer exploring options from India, thanks to platforms like Zoom or WhatsApp, we will assist you with one-on-one personalised, virtual property walkthroughs. These virtual viewings also include sharing photos, videos, floor plans and layouts.

Step 7 - Making an offer & reservation

After identifying your choice of property in London, the next step is making a compelling offer.

1. Resale or completed properties - Full payment is required for complete or resale properties. These transactions often move quickly — ensure your finances are ready for immediate transfer.

2. Under-construction or off-plan properties - You’ll need to pay a reservation fee, also known as token money, to reserve your property. After this, you’ll have 28 days to exchange contracts. At this point, 10% of the property’s purchase price must be paid. Subsequent payments to follow as per the project’s construction milestones.

Step 8 - Instructing a solicitor

In the UK, all property transactions must be conducted through a licensed solicitor or conveyancer. Working with an experienced professional ensures that your interests are protected and the process runs smoothly. We collaborate with several independent, highly qualified solicitors who specialise in assisting overseas buyers, particularly Indian investors.

Your appointed solicitor will organise and verify all legal documentation, ensure your property is free from legal disputes and oversee the exchange of contracts.

Documents required by the solicitor
  • Proof of identity - Current passport (a valid UK visa is not mandatory)
  • Proof of address - Utility bills, driver’s license, bank/building or credit union statement, tenancy agreement
  • Proof of funds - Bank statements for the past 3 to 6 months (from which the purchase funds will be remitted)
  • Supporting documents - for source of funds can be income from salary, business income, gifts or inheritance, fixed deposits or liquidated investments, sale of property or company profits/dividends/retirement income
  • Form (A2) Annexure 1 - Declaration of remittance and additional forms required by your local bank in India under the Liberalised Remittance Scheme (LRS)

Step 9 - Acceptance of the offer

Formalise the purchase by completing these steps -

  • Reservation fee payment
  • Solicitor completing the documentation and purchase process
  • Contract exchange timeline is 28 days after paying the reservation fees
  • The deposit amount (usually 10% of the property price) should be readily accessible before the contract exchange
  • For under-construction developments, possession may be at a later date

Step 10 - Conveyancing for Indian landlords

Conveyancing ensures that all legal aspects of the property transaction are handled professionally, protecting your interests as an Indian investor. This process is carried out by a solicitor or conveyancer. Here are the steps involved in the conveyancing process -

  • Title deed review - Provided to your solicitor by the seller’s solicitor
  • Documentation and queries - Your solicitor will review all paperwork and contracts and ensure thorough compliance with the UK property laws
  • Search requests - Solicitors will conduct local authority searches to gather information about the property. This includes planning permissions, building regulations and potential restrictions or disputes

Step 11 - Exchanging contracts

  • The exchange of contracts is when the transaction becomes legally binding for both you, the buyer and the seller. Up until this stage, neither party is legally obligated to proceed.
  • Contracts are exchanged within 28 days of the reservation date
  • At the time of the exchange, a deposit of 10%–20% of the property's purchase price must be paid
  • For off-plan or under-construction properties, the deposit needs to be paid in stages (as per the developer’s timeline). The same needs to be outlined in the purchase agreement

Step 12 - Snagging or property inspection

  • During a snagging meeting, the developer will give you a detailed tour of the purchased property and its features, including heating systems, water systems, lighting and electrical consumer units
  • Conduct a thorough snagging or pre-inspection before taking ownership. This process involves inspecting a newly built property to identify any unfinished or substandard work. Once done, prepare a detailed list of all issues that require the developer or contractor to take over
  • Common issues are paint spills, uneven finishes or flooring, including minor scuffs, improperly fitted doors, plumbing leaks, faulty wiring or gaps in window frames

Step 13 - Completion of purchase

Completion is the final stage, where the remaining balance of the property price is paid and ownership is officially transferred to you. This step involves transferring the full amount from your solicitor’s account to the seller’s solicitor.

The total payment required at this stage is calculated as -

Total Purchase Price – Deposit on Exchange = Balance Payment

Step 14 - Post-completion process

Congratulations on becoming a property owner in London! Once you pay the balance, you will become the legal owner of a property in the UK. This is a significant milestone!

At this stage, you'll receive the keys to the property.

Step 15 - Stamp Duty charges

Once you've successfully purchased your property in the UK as an Indian landlord, you will need to pay Stamp Duty Land Tax (SDLT). This tax is calculated as a percentage of the property’s value and is due within 14 days of exchanging contracts. Don’t worry; your solicitor will assist you in calculating the exact amount. They will also prepare and file your stamp duty land tax return.

To get a rough idea of how much you will need to pay, use our Stamp Duty Calculator

Step 16 - One-stop service for Indian property investors in London

  • Furnishings - We offer complete furnishing solutions through our partner company, InStyle Direct. We also manage refurbishments
  • Lettings - Benham and Reeves agents can help you find high-calibre tenants and secure the best rent across London
  • Management - We handle rent collection, property maintenance and ensure tenants take care of your house
  • Bill payments - We timely pay service charges, ground rent and utility bills on your behalf
  • Tax return service - We assist overseas clients with preparing personal tax returns