Six practical checks for investment or family use. Read them now, then bring your questions to a project conversation.
Write down your intended use, holding period and connection to London. For a rental investment, focus on costs and realistic net cash flow. For family use, map actual journeys to school or work. Compare buying with renting or waiting.
Prepare: your main use, preferred areas and approximate timing.
Ask for a dated price and payment schedule, then add the applicable purchase taxes, legal fees, financing fees and moving or furnishing costs. Ask a solicitor which Stamp Duty Land Tax rates and surcharges apply to your circumstances in England.
Request: a cost breakdown with the source, date and any unconfirmed amounts clearly marked.
If you plan to let the home, ask for the evidence behind any rental estimate. Include vacancy, management, maintenance, insurance, applicable taxes and financing. For leasehold homes, request service-charge budgets, recent accounts and information on planned major works.
Stress-test: lower rent, a longer vacancy and higher annual costs. A quoted gross yield is not your net return.
Map the dates when GBP payments are due and compare their CAD cost under different exchange rates. Obtain financing terms suitable for your residency and circumstances before relying on a borrowing estimate.
Check: deposit timing, funding conditions and a contingency reserve.
Ask qualified advisers about UK rental-income tax and Canadian income reporting. CRA’s T1135 rules can apply when the total cost of specified foreign property exceeds CAD 100,000 at any time in the year. Personal-use property is excluded; mixed use needs review. The reporting threshold does not exempt foreign income from Canadian tax reporting.
Bring: your tax residency, intended use and ownership structure to your advisers.
Before committing, identify who will inspect, let and maintain the home, what their fees cover and how you receive reports. Review title and lease terms with your solicitor. Ask about sale costs, financing repayment conditions and the consequences of needing to sell earlier than planned.
Confirm: named contacts, written responsibilities, fees and the documents still outstanding.
This is a preparation checklist, not a personalised investment recommendation, tax calculation or promise of returns. Requirements depend on residency, ownership, use and location; verify them when you make a decision.
Share your intended use and timing. Draco can help identify relevant project information and the questions to take to independent advisers. Current prices, stock and costs must be checked before any decision.
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