What overseas buyers should know before buying a London pied-à-terre: where to look, stamp duty and surcharges, financing from abroad and running it remotely.
By Aldo Attanasio d’Aponte – September 9, 2026
Buying a London pied-à-terre as an international buyer
A pied-à-terre in London is a second home you use for a few weeks or months a year, and for an international buyer it is a straightforward purchase with three complications: the tax is higher than for a UK resident, the search is harder to run from abroad, and the property has to look after itself when you are not there. Get those three right and a London base is one of the more sensible things a globally mobile family can own.
What makes a good pied-à-terre?
The brief is different from a main home. You will not be there most of the time, so the property has to be easy to leave and easy to return to. In practice that means four things.
Location first. The point of a London base is to be near what brings you to London: the office, the children’s school, the restaurants, the clinics of Harley Street, the auction houses. A pied-à-terre in the wrong postcode is a hotel with a mortgage.
Condition second. A property that needs work is a project you will manage from another country, in another time zone. Most of our overseas clients buy something finished, or have us run the refurbishment before they take up occupation.
Security and services third. A portered or concierge building means post is collected, deliveries are received, leaks are noticed before they become ceilings, and you are not worrying about an empty flat. This is why so many second-home buyers choose a lateral apartment in a managed building rather than a house.
Liquidity fourth. A second home is the asset you may sell first if circumstances change. Buy something the market will always want: a good floor in a good building on a good street, with a long lease. Idiosyncratic properties are for people who live in them.
Which areas of London suit a pied-à-terre?
Mayfair remains the obvious choice for buyers who want restaurants, clubs, galleries and Bond Street on foot, and it has become far more residential in the past decade than it was when I started. St James’s, just south, is quieter and equally central. Marylebone offers a village high street, good transport to Heathrow and the City on the Elizabeth line, and better value per square foot than Mayfair. Chelsea and Belgravia give the classic white stucco and garden square address, with Sloane Street and the King’s Road for shopping. Covent Garden and the West End suit buyers whose London life is theatre, opera and the Royal Opera House, and it is where our own office sits. Knightsbridge and Kensington attract buyers whose priority is the parks and the museums.
Which is right depends entirely on the buyer. I ask clients to describe a typical London week before we discuss a single street, because the answer usually settles the area on its own.
Can a non-resident buy property in London?
Yes. There are no restrictions on foreign ownership of residential property in England, regardless of nationality or visa status. Ownership does not confer any right to live in the UK; immigration and property are separate questions. Since 2023, overseas companies that own UK property must be registered on the Register of Overseas Entities, so a buyer purchasing through a foreign vehicle needs to plan for that with their advisers.
The practical obstacle is not the law but distance. Viewings happen in London, negotiations move quickly, and the best properties are shown quietly to trusted buyers before they are advertised. A buyer who can only be in London for two days a quarter needs someone on the ground pre-viewing, shortlisting and negotiating, so the two days are spent on properties worth buying.
How much stamp duty does an overseas buyer pay?
More than a UK resident buying a main home, and buyers should budget for it before they fall in love with anything. Stamp Duty Land Tax on a residential purchase in England is charged in bands, rising to 12% on the portion of the price above £1.5m. A buyer who already owns a home anywhere in the world pays an additional 5% surcharge on the whole price, because a pied-à-terre is by definition an additional dwelling. A buyer who is not UK resident for SDLT purposes pays a further 2% surcharge on top.
Worked through, a non-resident buying a £3m pied-à-terre in London, while owning a home abroad, would pay roughly £483,750 in SDLT: about £273,750 at the standard bands, plus £150,000 for the additional-dwelling surcharge, plus £60,000 for the non-resident surcharge. That is over 16% of the price, payable within 14 days of completion. Add legal fees, survey, and the buying agent’s success fee, and the all-in acquisition cost is worth modelling with your tax adviser before offers are made. The non-resident surcharge can be reclaimed if the buyer subsequently spends enough days in the UK within a set window, which is one of several reasons the structure of the purchase should be discussed early.
Rates and figures correct at the time of writing; confirm the current position before relying on them.
Can an international buyer get a mortgage in London?
Yes, though the field is narrower than for a resident. High street lenders are generally not interested in non-resident borrowers; private banks and specialist lenders are, and they will often lend against the property plus a relationship or assets under management. Loan-to-value is typically more conservative, and the process is slower, so a buyer who intends to borrow should have terms agreed in principle before the search starts. Many of our clients buy in cash and refinance later once the property is theirs, which also makes them stronger bidders in a competitive situation. We work alongside the client’s private bank throughout; I think of the role as a personal banker for property, and the bank usually agrees.
How do you run a second home from abroad?
Decide before you buy whether the property will be let while you are away. If it will, the choice of building matters: some leases restrict short lets entirely, and any let of a residential property in England brings safety, deposit and tax obligations that must be handled properly. If it will not, then arrange housekeeping, regular inspection and a managing contact who can deal with a boiler or a burst pipe without you flying in. A good concierge building solves most of this. For a house, you will need a property manager.
Think also about the exit. Non-residents pay UK capital gains tax on the disposal of UK residential property, and the estate may be within the scope of UK inheritance tax. Neither should stop a purchase, but both should be understood before it.
How Arbitrage can help
Most of our clients live outside the UK, and many are Italian or continental European; I am Neapolitan and we work in English and Italian. We run the entire search in London on the client’s behalf, from brief to keys, and we coordinate with the client’s bank, tax advisers and solicitors so the purchase fits the rest of their affairs. Through our relocation service we can also arrange a rental base while the search is under way. See our acquisition service for how we work.
Frequently asked questions
Do I need to be in London to buy a pied-à-terre?
No. We can pre-view, shortlist and negotiate on your behalf, and your solicitor can complete the purchase with a power of attorney if required. Most clients visit once or twice to see the shortlist in person, which is far more efficient than viewing from scratch.
Is a flat or a house better for a second home?
For most overseas buyers, a lateral apartment in a portered building is more practical: it is secure when empty, there is someone to receive deliveries and notice problems, and there is no garden or roof to worry about. Houses suit buyers who spend longer periods in London or want more space for family.
Will owning a home in London give me residency?
No. Property ownership and immigration status are entirely separate. Buyers who intend to spend significant time in the UK should take immigration advice, and should also understand that the days they spend here affect both the SDLT non-resident surcharge and their wider UK tax position.
Can I let my pied-à-terre when I am not using it?
Often, but check the lease first; many prime buildings prohibit short lets, and Westminster and Kensington and Chelsea restrict them. Any letting brings landlord obligations and UK income tax, so it needs to be set up properly rather than informally.