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If you are from the UK and you are thinking of homes or houses in Lagos

Page history last edited by steve rogers 1 year, 5 months ago

If you are from the UK and you are thinking of homes or houses in Lagos? Then here is insight on what you need to know about, how to buy a house in Lagos Nigeria and the Laws regarding Nigeria property.

Owning a property overseas can be an alluring idea, epically when considering the prospect to buy a house in Lagos Nigeria regardless of your age or your situation—whether you're a young professional, retiree, investor, or considering transferring your family abroad. There are other international hotspots abroad with fantastic property deals, depending on your demands. Young professionals enjoy travelling to places like Copenhagen and Berlin, families enjoy Singapore and Lagos, there are many vacation houses in Cape Town, and pensioners looking for sun can choose Mallorca. In the past, it was common practice to determine someone's wealth based on the number of properties they owned. In Nigeria, having a piece of real estate is one of the more traditional measures of wealth.

There are many reasons you might think about purchasing a home abroad. Maybe you've found the perfect vacation spot and need a place to store your belongings permanently. Or perhaps the thought of retiring somewhere warm and sunny appeals to you. In either case, purchasing property abroad will be different from purchasing a home in your own nation. Every Nigerian has a fantasy of owning a home in Lagos, especially given the city's rising property values. As advantageous as it may be to own property in Lagos and avoid paying the steadily rising rent associated with being a renter, doing so necessitates preparation and compliance with the law.

Purchasing your ideal home is actually more like organising your wedding. Before you find the right one, you encounter a number of people and homes. And similar to getting married, if you choose the perfect spouse (or purchase the appropriate house), you will always be pleased and enthusiastic, but if you choose the wrong one, you can live to regret it. 

This is why Beaulieu Homes has put together a list of things you should watch out for and consider when purchasing real estate in Lagos State so you don't make decisions you'll later regret.

The Lagos Nigeria ''Assignment''

In Nigeria, and notably in house for sale in lagos, there are anomalies in the purchasing of real estate. The state government actually owns the land, thus any change in ownership—or assignment, in the event of a lease—should receive the governor's approval.

Real estate sales don't actually include buying and selling something. Only rights can be transferred from one person to another. Typically, this transaction is referred to as an "assignment." The seller transfers to the buyer the right to use and inhabit the property. The buyer requests a fresh (statutory) certificate in his name following the transaction. The buyer is the assignee in this situation, and the seller is the assigner.

One might think of themselves as buoyant enough to be a landlord at some point in their lives. Despite the fact that everyone has a distinct motivation for purchasing a Beaulieu homes properties, there are still important factors to take into account in Lagos, Nigeria.

 Purpose

It is crucial to have a goal in mind before choosing to purchase Lagos real estate anyplace in Nigeria. You want to obtain the best return on your investment when purchasing any Lagos house properties. What function would the property fulfil is the crucial question to ask. When the purpose is clearly stated, this will assist in making numerous decisions. The objective may be residential or commercial estate.

Whether you are purchasing the property for business purposes as an investment. One of the wisest strategies to guarantee speedy returns on investment is to do this. You want to purchase a building or apartment and rent it out. One can guarantee a consistent money flow by doing this. One of the many reasons people choose to invest in Lagos real estate is to diversify their income streams.

For residential purposes, purchasing a Lagos home is often at the top of people's list of must-achieve objectives before retirement. It is the assurance that after retirement, one will have a roof over their head. Then, there won't be a need to stress over whether or not the following month's rent is due. For some people, having their dream Lagos home and being a landlord is enough fulfilment. Whatever your reason for buying a Lagos house, there are still a few factors you should keep in mind, such as how secure the neighbourhood is and how close the property is to essential amenities.

How Much Does It Cost to Live in Your New Country?

If you choose a location with a cheap cost of living, moving abroad can increase your income. On the other hand, moving abroad might not make sense if you want to purchase a home in a place where necessities like food, transportation, and medical care are significantly more expensive than they are in your present city. 

It's a good idea to find out more about how the cost of living in those places compares to what you're currently paying when you're looking at residences. You may then budget and plan ahead as a result.

Sale Budget

Making the best use of your resources is made possible with the aid of a budget. When buying a Lagos property, a budget should be taken into account. It is crucial to always conduct research on the cost of purchasing a Lagos property and the additional costs connected with it. Simply wanting to buy a Lagos home is not enough.

The cost of purchasing a Lagos property entails additional expenses, some of which include legal fees and agency fees, which could amount to around 5% of the price of the property. 

To ensure a smooth purchase process, these additional expenses should be included in the budget from the beginning.

Lagos Nigeria Location

Many people buy Lagos homes without fully comprehending the value of different locales. For instance, in Lagos State, the majority of Lagos Island is more expensive than a few locations on the Lagos Mainland. Investors in real estate need to understand how location can have a significant impact on price. The location of the property you are buying in Lagos, or any other area of Nigeria, must be taken into account.

Due diligence

Purchasing a Lagos home without performing due diligence is risky; consulting with a lawyer is crucial. It's one of the pitfalls or traps that individuals frequently fall into. 

In order to purchase a home in Nigeria, you must do your research and ask lots of questions. Ask for professional assistance and become well-versed in all process paperwork. Don't become emotionally involved in the process; instead, ask your lawyer for as much information as you need and clarify anything that is unclear (be prepared to walk away).

How will you finance Your fully detached duplex or new home?

Finding the right financing is one of the most difficult components of buying a property abroad. Be ready to make a sizable down payment and perhaps pay a high-interest rate if you intend to obtain a mortgage through a foreign bank. In order to ensure that your mortgage can be paid off in the event that something were to happen to you, you might even be obliged to buy a separate life insurance policy. Consider paying cash for a foreign residence if you don't want to deal with financing. As a source of funding, you can use a home equity line of credit. But if you can't make the payments, you'd be risking your principal residence.

Selecting the best money transfer company

You need a money transfer service provider that is regulated, safe, that can transfer sizable sums directly to a bank account, and provides favourable exchange rates due to the sizeable amounts of money involved. Property buyers or senders of substantial sums frequently suffer significant losses as a result of murky transfer pricing and exchange rate calculation.

Let's look at a real-world case as an illustration of how to avoid overpaying: you are in Britain and wish to send money to France to purchase a home. Imagine that you decide to utilise Currencies Direct as your money transfer service provider since it supports transactions over £250,000, which is within the range of the deposit you anticipate making.

You should ensure the conversion rate and rules are in your favour by using this example as a guide:

Exchange rate - Currencies Direct provides favourable exchange rates in comparison to high street banks. You may acquire real-time, transparent quotes between the sterling pound and the euro after you register with their platform. Currencies Direct gives you a dedicated account manager for transfers over £25,000 who will walk you through the process and provide insightful advice. They also offer a unique rate-watch service that can be used to keep track of the exchange rate for the currency pair you want to use.

Regulation: The highest level of security is required when transferring funds worth £500,000. Authorities in four markets oversee Currencies Direct: 

The Financial Conduct Authority in the United Kingdom

Financial Crimes Enforcement Network (FinCen) in the United States

South African Reserve Bank

Financial Transactions and Reports Analysis Centre (FINTRAC) in Canada

These authorities guarantee the security of your money and personal data. Given the prevalence of cyber threats everywhere in the world, you must take all necessary precautions to keep your money secure. 

With 20 service locations across the world, Currencies Direct manages 39 different currencies. If you're interested in learning more about the real estate markets in nations like Spain, the United Kingdom, the United States, Australia, Canada, and France, this service is genuinely representative. However, the goal here is to plant a seed so you have possible options when transferring cash You may be able to transfer via Bitcoin or it's also worth looking into the application called Transferwise.

Security Of houses In Lagos

If you value your life and your possessions as much as I do, the safety of the neighbourhood should be your top priority when looking to buy Lagos real estate. You shouldn't purchase a Lagos home or piece of land in a neighbourhood with a high crime rate. 

Therefore, inquire about the neighbourhood's security before making a purchase. 

Consider repair costs

When thinking about purchasing real estate in Nigeria, it is crucial to keep the expense of repairs in the back of your mind. This is due to the fact that, in the majority of cases, after purchasing a Lagos home, you still need to spend money making some repairs, such as in the kitchen and bathroom for example.

Social services

Before buying property in Lagos, you should also take into account social amenities because they make your life more enjoyable and convenient. Imagine having the distance of your house far from a hospital, a grocery store, a school, a park, and a market. If there is an emergency and you need to travel to the hospital fast, how will you handle it? Now take into account the traffic in Lagos State.

You've just had a significant unexpected visitor and need to prepare food for them because you don't currently have anything in the refrigerator. The distance from your home to the closest supermarket, meantime, is excessive. How will you handle it? These types of considerations are well worth exploring when first buying a Lagos Nigeria property home. 

Therefore, make sure that these social amenities are close to your home to prevent similar embarrassments from occurring in the future.

 Road networks & Flooding

How accessible is the property, and are the roads motorable? You shouldn't buy a Lagos property in a difficult-to-navigate or inaccessible environment. You should also take into account how far you are from the locations you frequently visit. Flooding is another issue related to road accessibility that you should be aware of. It is now widely known that at least 50% of Lagos, particularly the island, suffers from flooding. Therefore, the rainy season is the ideal time to begin Lagos house-seeking. Due to this, flooded estates are fairly simple to identify.

Debt on utility bills Could this be why it's cheap?

In Nigeria, discovering a debt on an energy or garbage bill after renting or purchasing a Lagos home is starting to become the norm. For this reason, before buying the house and the debts, you should find out if there are any outstanding bills before continuing with the sale,

Hire a competent  Nigeria Property Lawyer

Not all Lagos lawyers have specialised knowledge of real estate deals. Even while all Lagos attorneys have some knowledge of property law, there are several complexities and difficulties that a person who is not an expert in Lagos real estate issues can easily overlook. The lawyer you choose must therefore be able to demonstrate to you their expertise. The correct lawyer must be retained because you will need one for every step of the buying process that follows. Allow expertise and experience to be the deciding factors in your decision to employ a lawyer rather than price or convenience.

Looking for the perfect apartment or house

The next step after hiring a lawyer is to start looking for properties in the area and within your price range. You can now hire an estate agent, who will seek properties that fit your criteria, compile a shortlist for you, and arrange for you to view the properties on your shortlist. If your lawyer is engaged in numerous land transactions, he or she should have a number of estate agents they work with and can recommend to you. This can help you find a reliable Lagos estate agent.

Investigating the Seller

Every time you come across a Lagos property you are interested in, you should make sure the individual you are working with is either the owner of the property or someone who has the legal right to sell the property. When dealing with real estate in Lagos, you frequently hear of con artists who attempt to dupe unwary purchasers into purchasing the property that they do not actually own. At this point, your attorney will start working diligently on your behalf. The attorney will carry out the proper searches, ask the appropriate questions, and request the appropriate documentation to ascertain whether the person you are speaking with about the property in Lagos is actually the owner. Particularly when it comes to family land, this is of the utmost importance.

 Investigating the Property

You can proceed to the stage where your lawyer will also play a significant part in inspecting the Lagos property if you can verify that the person you are speaking to about the property in Lagos that you want to buy is the actual owner of the property or has the authority of the house owner or apartment. The attorney will carry out the necessary searches and review the necessary records to confirm that the property is unencumbered, that no lawsuits are pending, that it has not been acquired by the government, and that no overriding interests apply to it.

View the Property

At this point, if you have established that the individual with whom you are dealing has the title details and the property is free from any added encumbrances, you should physically check the property. You want to make sure the ecosystem and the land are up to par at this point. A registered surveyor should also visit the site and go over the survey plans as well as offer advice on the property.

Sale Negotiation

This stage is self-explanatory; at this point, both the buyer and the seller have determined that the sale transaction can go through. The next step is to agree on a fair asking price for the land. Your attorney will be very helpful in this situation as well since they will be able to provide you with a clear picture of any potential sale liabilities you may have in the future (such as stamp duty costs or other government expenses), allowing you to account for them when submitting a sale offer. In order to determine the property's sale value and whether the price being discussed represents its fair market value, it is also a good idea to have an independent sale valuation of the property performed.

Sale Documentation

Your lawyer (and the seller's lawyer) will proceed to the stage of drafting and negotiating all the completion agreements if the negotiation goes well and the sale offer is approved. The contract of sale, the receipt, and the deed of assignment are the three basic legal documents used in land sale transactions in Lagos. The attorneys will handle this and make sure that the interests of both parties are taken into consideration regarding the final sale.

 Sale Completion, Exchange & Possession

The buyer has now acquired all of the original title documents and transfer documentation, the sale land transfer process is progressing, and the buyer and seller have exchanged sale contracts. At this point, payment has also been made for the property's purchase price. Once everything is done, the buyer can take possession of the property as the new owner.

After the buyer has actually taken possession of the property, the next step is to file all the required paperwork with the relevant government agency and then start the procedure to get the governor's sale approval of the deal. Once the governor has given his sale approval, the property deal is finalised with the issuance of the Certificate of Occupancy. 

Please be aware that, in accordance with the Land Use Act's stipulations, the Governor is the exclusive owner of all real estate in a State, and anyone may occupy a space for up to 99 years.

Homes resale value

You should consider the resale value of a house before purchasing it in Lagos. The sale price at which a residence is anticipated to be sold in the future is known as its resale value. The home's age and general condition, as well as any renovations made to the property, can all have an impact on the resale value.

 

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