Buying property with overseas funds: the checks that can delay your conveyancing
If you are buying property with overseas funds, your solicitor must check who you are, where the money came from and how it will reach the UK before contracts can be exchanged and completion can take place. Those checks are a legal requirement, they are usually more detailed for overseas money, and the most common cause of delay is paperwork that arrives piecemeal. Gather your evidence the day your offer is accepted and you can avoid most of the hold-ups.
Nothing generally stops an overseas buyer from owning property in England and Wales. The delays tend to come from timing, translation and gaps in the paper trail. This guide covers what gets checked, what typically goes wrong and how to prepare.
Why do overseas funds get extra checks?
Conveyancing is treated as a high-risk area for money laundering, so solicitors must verify identity, understand the transaction and check the source of funds under the Money Laundering Regulations 2017. Money from overseas is harder to trace, may involve other currencies or languages, and can come from countries with higher money laundering, sanctions or corruption risks. That means more documents, closer scrutiny and sometimes enhanced due diligence before your solicitor can proceed.
The SRA explains that solicitors must confirm your identity and check the source of any funds involved in legal transactions, and that anyone providing money for you, such as a parent gifting a deposit, may need to be verified too. If your solicitor cannot get the information they need, they cannot act. Your lender will usually run its own checks as well, so it helps to understand how mortgage offers fit into conveyancing.
Proof of funds, source of funds and source of wealth
These three terms get mixed up, and mixing them up causes delay.
Term | What it means | Typical evidence |
Proof of funds | You have enough money to complete | Recent bank statements showing the balance |
Source of funds | Where the money for this purchase came from | Statements tracing the money, sale completion statements, gift letters |
Source of wealth | How you built up your overall wealth | Employment or business records, tax records, sale documents, usually for higher-risk matters |
Showing a healthy balance is not enough. Your solicitor needs to trace the origin of the money, not only where it sits today.
The checks that most often cause delay
Documents in another language. Statements, contracts and certificates that are not in English may need translating, sometimes with certification. Ask your solicitor early which format they accept.
Money moved around before you instruct. Shifting funds between accounts or currencies without keeping statements breaks the trail. Keep a record of every step.
Funds from someone else. A gift from a relative, a loan or a payment from a company means that person is checked as well, including where their money came from. A gift usually needs a signed letter confirming it is a gift, not a loan, and gives the donor no share in the property.
Proceeds from selling property abroad. Say you are selling a flat overseas to fund your deposit. You will need the sale contract, the completion statement and the bank statement showing the money arriving. If that sale completes later than your UK exchange date, the gap can hold everything up.
Complex or higher-risk sources. Business sale proceeds, trusts, investments, politically exposed persons and some countries attract enhanced due diligence, which can mean senior sign-off and more questions. Some firms will not act where funds come from certain high-risk or sanctioned jurisdictions, so ask before you pay for any work.
Changing the plan midway. Introducing a new gift, switching accounts or replacing savings with investments can restart the checks and may need lender approval.
Buying through an overseas company. An overseas entity must be on Companies House’s Register of Overseas Entities and hold an overseas entity ID before it can apply to HM Land Registry to be registered as owner.
What evidence do you need for each source?
Source of funds | Evidence usually requested |
Savings | Statements covering several months, often three to six, showing the money building up |
Sale of overseas property | Sale contract, completion statement and a statement showing receipt |
Gift | Signed gift letter, the donor’s ID and the donor’s own source of funds evidence |
Inheritance | Estate documents such as a grant of probate or the foreign equivalent, plus a statement showing receipt |
Business income or dividends | Accounts, dividend records or tax paperwork |
If the money comes from an inheritance abroad, our wills and probate team can help you put the right estate documents together.
How to prepare, step by step
Before you make an offer, ask a solicitor what they will need for your type of funds. Our guide on choosing the right conveyancing firm covers what to ask.
Instruct your solicitor as soon as the offer is accepted and start identity and funds checks straight away. Our checklist for your first meeting with a conveyancing solicitor shows what to bring.
Send your documents together rather than one at a time.
Tell your solicitor about anything unusual at the outset, including gifts, business income, cryptocurrency, trusts or funds in more than one currency.
Keep your accounts and funding plan stable until completion.
These habits are the same ones that help you speed up the conveyancing process, and they matter more when you are working across time zones. Online services can help here, and our overview of online conveyancing explains how remote transactions run. If you cannot attend signing or completion steps in person, a lasting power of attorney for international assets or a suitable transaction-specific power of attorney may let someone act for you.
Moving the money without losing time
International transfers can take days, and exchange rates move. Keep a record of each conversion, because the paper trail still matters. Send money from an account in your own name where you can, since payments from other people trigger more checks.
Before you send anything, phone your solicitor on a number from their official website to confirm the bank details. Fraudsters target property buyers, and our guide on property fraud and how conveyancers reduce the risk explains the warning signs.
The deposit is usually due on exchange and the balance on completion, so the money needs to arrive in cleared funds before each date. Our guides on protecting your deposit and preparing for exchange of contracts set out the timing.
Tax checks that change how much you need
If you were not in the UK for at least 183 days in the 12 months before your purchase, you are treated as non-resident for Stamp Duty Land Tax. GOV.UK confirms you will usually pay a 2% surcharge on residential property in England or Northern Ireland, on top of the normal rates. If the purchase means you will own more than one residential property, a further 5% usually applies.
On a £400,000 home, standard SDLT is £10,000 and the 2% non-resident surcharge adds £8,000, so £18,000 in total for a buyer with no other residential property. If the higher rate for additional properties also applies, that figure rises by a further £20,000. You may be able to claim a refund of the non-resident surcharge if you later meet the residence test, so keep your travel records.
Budget for this early, because it affects the funds your solicitor has to verify. Our guide to Stamp Duty Land Tax explains the basics, and investors should read about conveyancing for buy-to-let purchases. A full picture of fees is in our guide to the costs involved in conveyancing.
Does your immigration status matter?
Owning property is separate from immigration status, and you do not need a particular visa to buy. Buying a home also does not give you the right to live in the UK. If you are planning to move here, our immigration team can advise on your route, and our article on how immigration status affects UK property ownership covers the overlap.
Frequently asked questions
Can I buy UK property with money from overseas?
Yes. There is no general nationality restriction on buying UK property. You will need to satisfy identity and source of funds checks before contracts are exchanged and completion takes place.
How long do source of funds checks take?
It depends on how complete your documents are. Straightforward cases can clear quickly, while overseas funds, gifts, business income or documents needing translation can add days or weeks, especially if evidence arrives in stages.
Can a family member send my deposit from abroad?
Yes, but they will usually need to be identified and evidence where their money came from. A signed gift letter is normally required, and the lender may also need to approve the gift.
Do I pay the 2% surcharge if I live abroad?
Usually, if you were not in the UK for at least 183 days in the 12 months before purchase. A refund may be available if you later become UK resident under the same SDLT test.
Start your checks before you make an offer
Delays with overseas funds are rarely about the money itself. They are about proving where it came from, quickly. Athi Law's conveyancing team can tell you which documents to gather, check your plan for gaps and keep your purchase moving.
We also help with related matters, including family law where funds come from a divorce settlement abroad. See how we can help at Athi Law and contact us before you make an offer. Our guide to property chain delays also explains what to do if the sale on the other end slows down. A solid due diligence approach protects you either way.
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