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Concrete Analysis | For Hongkongers, a trusted developer is key when pursuing a dream home in the UK market
- Buyers should make sure that stage payments and a watertight legal agreement are in place. It is advisable to appoint your own lawyer, rather than accepting one recommended by the developer
- Hold the money in escrow until stage payment conditions have been met
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Why you can trust SCMP
Since the UK unveiled its new British National (Overseas) passport policy three months ago, more than 7,000 residential properties have been sold to Hongkongers alone, sources say. Engaging a trusted developer is key to a hassle-free experience.
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Unlike Hong Kong, where most developments are built by large developers and the quality can be assured, the UK market is tougher to assess for first-time investors. In emerging cities like Manchester and Birmingham, qualities can vary among small to medium-sized builders who dominate the scene.
Among buyers of new homes, more than half of them have experienced major structural problems with their properties, according to a Guardian report. From weak mortar to faulty drainage and cracked windows, anyone would not have imagined that houses with these “features” would last for more than 30 years.
Stories about estates being left in limbo or abandoned, after the developers went into administration, or simply “disappeared,” are not uncommon, especially in Manchester and Birmingham – two of the favourite cities for Hong Kong buyers.
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UK unveils details of citizenship offer for Hongkongers with BN(O) passport holders
UK unveils details of citizenship offer for Hongkongers with BN(O) passport holders
These issues have quickly turned into a series of nightmares for many new owners. The British government has recognised these shortcomings, branding the property market as “broken” in a white paper published in 2017.
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