London property investment guide for Kenyan buyers

Structure your finances

Whether you purchase a property in full cash or secure a mortgage, you must establish a solid financial plan.

Cash investments - Buying a property outright in liquid capital dismisses all mortgage-related complexities and strengthens negotiation power. However, calculate foreign exchange fluctuations when transferring funds to the United Kingdom.

Leveraging assets - If you own a local property in Kenya, you can consider releasing equity to fund your new purchase. You can get more information on the different refinancing options through Kenyan and London banks. We recommend carefully studying the interest rates and repayment terms before deciding.

Local Kenyan banks can help with mortgages through your domestic credit history. The other option is to get help from London-based banks with mortgage solutions for international buyers. Your mortgage eligibility will be assessed based on deposit size, income stability and financial background.

Note - Compare mortgage rates, repayment structures and lender requirements to identify the best financing option.

Mortgage requirements

To secure a mortgage in London as an overseas investor, you must pay a deposit amount, often at least 25% of the purchase price. While we recommend covering a larger deposit, you can choose from fixed and variable-rate mortgages that start from £50,000 (KES 73,600).

Consider working with a reputable mortgage broker for assistance with selecting the best financing option.

Documents to prepare

To successfully purchase property in London, Kenyan investors should get the following documents ready

• A passport for proof of identity (UK visa is not required for the purchase process)
• Utility bills, bank statements or a Kenyan driver’s license for proof of address (dated within the last three months)
• Recent bank statements and supporting documents verifying the source of your funds
• Notarisation by a solicitor or accountant for certified documentation

Choosing the right property

Consider the following factors before shortlisting a property in London

• Decide if you’d like to use the property for rental income, long-term capital growth or self-use
• Focus on locations with strong rental yields and potential for price appreciation ( Mayfair, Knightsbridge, Belgravia, Kensington and Chelsea, preferred for their prime London location and convenient transport)
• For quicker rental income, opt for a one or two-bedroom apartment, as they typically move faster in the market
• Make sure you research the developer’s track record and request construction guarantees
• Understand the implications of leasehold properties (you outright own the house as well as the land it's built on) versus freehold properties (ownership and maintenance are shared with other residents)

Set a realistic budget

Purchasing a property is more than just the sale price. Here’s a breakdown of additional costs for a more transparent budget allocation

Mortgage fees If you are financing your purchase with a mortgage, arrangement, booking and valuation fees should be factored in.

Legal fees Ensure you onboard a UK-based solicitor to handle conveyancing and contract drafting. The fees for these services are usually anywhere from £1,800 to £4,000.

Stamp duty land tax (SDLT) As a non-UK resident, you are subject to the following SDLT rates based on the chosen property value

• £300,000 property – 6.67% tax (£20,000)
• £500,000 property – 8% tax (£40,000)
• £700,000 property – 8.57% tax (£60,000)

Ongoing maintenance costs These charges usually incur on leasehold properties, including ground rent and service charges ranging from £200 to £600.

Additional Expenses Factor in an extra £500 to £700 for miscellaneous expenses such as transaction fees, insurance and legal documentation.

Furnishings This expense is optional. However, it is recommended, especially if you buy for rental income.

Property tours

With the distance between the two countries, we understand that many Kenyan property buyers may be unable to visit London immediately. With Benham and Reeves, the buyers can benefit from the following

• On-site property tours - Our team will arrange guided tours of shortlisted properties according to your dates of visit to London. During these tours, we will offer insights into the neighbourhood, residents’ amenities and investment potential.
• For virtual tours, we can arrange property showings remotely via video calls, 3D virtual tours and real-time Q&A sessions to understand the home’s layout, condition and location.

Secure your investment property

Once you have decided on a property, submitting an offer and reserving the space is the next step. The approach varies depending on the property type

You must pay full payment upon contract exchange if it's a ready-to-move-in property.

For off-plan developments, you will pay an initial reservation fee, followed by staged payments throughout the construction process.

Your Solicitor’s role

When buying a property in London, onboard a UK-based solicitor to fulfil due diligence, verify ownership and draft legal contracts on your behalf. Your solicitor represents you and your interests and helps finalise the best deal. With over six decades in the London market, we have worked with and can recommend trusted legal experts who are experienced in assisting Kenyan investors.

Offer acceptance

Once your offer is accepted, you can secure your purchase by paying the reservation fee and signing the required paperwork. Your solicitor will then begin drafting the contract. To ensure a smooth transaction, keep these things in mind -

• The contract exchange is usually carried out within 28 days, though this timeline can vary based on the agreement
• Ensure your deposit funds are readily available when the contract is signed
• Be prepared to pay the remaining balance (after deducting the deposit) upon completion of the purchase
• The final payment is due on the agreed possession date for off-plan properties

Conveyancing process

The purchase legalities begin once the sellers accept your offer. These formalities include

• Title verification to ensure the property is legally owned and free of encumbrances.
• Contract review under which your solicitor will examine all legal documents and highlight potential risks.
• Deposit payment is typically 10-20% upon contract exchange.
• Final checks and handovers, including a snagging survey (for new-build properties), are carried out to ensure the purchased unit meets expected quality standards before completion.

Signing the contract

The exchange of contracts indicates that the buying process is legally enforceable between the buyer and the seller. The contract exchange timeline, in most cases, is 28 days of property reservation. You must present a deposit of 10-20% of the purchase price at this stage. Payments are mostly linked to construction milestones outlined in the agreement for off-plan, under-construction properties.

Final property checks (snagging)

Snagging is crucial as it helps identify and resolve defects before finalising your purchase. These checks are particularly important for new-build properties.

In this process, the builder or seller arranges an inspection where you can highlight and address issues before the ownership transfer. These issues can be paint defects, water leaks or broken doors. The developer is also responsible for walking you through the key property features, including hot water, electrical setup, heating systems and switches.

Completing the purchase

In this step, you will need to pay the final balance. Legal ownership will be transferred to you and you will officially become a London property owner!

Stamp Duty tax costs

Stamp Duty Land Tax (SDLT) is a mandatory payment calculated as a percentage of the purchase and is due within 14 days of property completion. As a non-UK resident, there will be a surcharge of 2% above a certain threshold.

However, you can avoid paying this tax if you qualify as a UK resident. To do so, you must have spent at least 183 days in the United Kingdom in the past 12 months. If multiple buyers are involved and at least one is a non-UK resident, the entire purchase is treated as non-resident — unless the buyers are legally married or in a civil partnership. In this case, the UK-resident status can apply to both.

You don’t need to handle these formalities, as your appointed solicitor will fulfil them on your behalf.

You can also use our Stamp Duty Calculator to estimate your SDLT liability.

End-to-end property management services

Benham and Reeves offers its domestic and overseas clientele comprehensive services to ensure a seamless property investment journey

• Furniture & interior design - Investors benefit from our partner company, InStyle Direct’s furnishing services to style their property for rental or personal use
• Lettings & rental - We will manage lettings, sales, rentals and buying on your behalf and handle tenant sourcing, lease management and rent collection
• Tax & billing - Our experts will provide assistance with service charges, ground rent and tax compliance to keep the buying and after-sales process hassle-free for you