London Buyers Turning to Israel

The Expert Guide Every Family Needs Before Investing

From mortgages to lawyers, new builds to rental yields—this clear guide explains what London buyers must know before entering the Israeli market.

For a growing number of British Jews, the idea of owning a home in Israel has moved from an emotional aspiration to a serious, practical investment strategy. Whether driven by future Aliyah plans, a desire for a holiday home, or the appeal of strong long-term capital growth, London buyers are increasingly looking toward Israel as a stable and meaningful property market. But even seasoned buyers in the UK often find the process unfamiliar, fast-paced, and filled with nuances that don’t exist in the British system.

This expert guide breaks down the process step-by-step, offering clarity, direction, and confidence for anyone considering the exciting move of purchasing property in Israel.

1. Know Your Budget — Israel Works Differently

Unlike the UK, Israel has no mortgage contingencies. Once you sign a contract, you’re committed—financing approved or not. This single difference is the number one rule every London buyer must understand.

That’s why the first step is obtaining a realistic mortgage assessment from an Israeli mortgage broker. For buyers coming from abroad, Israeli banks typically approve up to 50% loan-to-value, sometimes up to 60% with strong income documentation.

Buyers must also factor in approximately 12% in purchasing costs: purchase tax, lawyers’ fees, buyer’s agent fees, mortgage arrangement fees, bank charges, and currency transfer costs. Many UK families underestimate this, but with proper planning, everything can be mapped out in advance so there are no surprises.

Let us connect you to our panel of Mortgage experts .

2. Legal Representation: Your Most Critical Ally

Israel’s legal system differs significantly from England and Wales. Your lawyer plays a far more involved role—verifying ownership, performing land registry checks, reviewing development rights, ensuring compliance, and coordinating all stages of due diligence.

Because many UK buyers cannot physically attend signatures or inspections, it is standard to grant Power of Attorney to a lawyer or trusted representative in Israel. This enables the entire process to continue smoothly without international delays for apostilles or couriering documents.

Working with a legal team experienced with Anglo clients is essential. It ensures clarity, avoids misunderstandings, and protects you structurally at every stage.

Let us connect you to our panel of legal experts .

3. Currency Transfer: Don’t Leave This to Chance

Most UK buyers are transferring funds in sterling or dollars, which means currency planning is critical. Incorrectly transferred funds—or funds lacking proper documentation—can be delayed or even rejected by Israeli banks.

A good currency advisor helps you:

• Secure better rates than UK retail banks

• Lock in future rates using forward contracts

• Manage transfers over time

• Prepare exact documentation Israeli banks demand Given how GBP/NIS has fluctuated over the last decade, the savings can be substantial.

Let us connect you to our panel of Forex Experts.

4. New Build or Second-Hand? Understanding the Options

Israel’s market consists of two main categories: new builds/off-plan projects and secondhand apartments.

New Builds Offer:

• Lower initial cash outlay (payments spread across 2–4 years)

• Modern layouts, lifts, balconies, parking, and safety rooms

• Strong capital growth in developing neighbourhoods

• Ideal for families planning Aliyah in the next few years

Second-Hand Apartments Offer:

• Immediate occupancy or immediate rental

• Often larger internal sizes

• Established communities and infrastructure

• Strong long-term desirability

Many London buyers are drawn to new projects because payment plans allow for more flexible budgeting and organized mortgage approval timelines. However, for those looking for immediate rental income, second-hand homes can be an excellent choice.

Let us introduce you to options across Israel.

5. The Overlooked Stage: Professional Project Management

For anyone purchasing a new build or renovating a second-hand property, the post-purchase stage is often the most demanding. From material selections and upgrades to managing contractors, changes, and deadlines, it can be overwhelming—especially from abroad.

A professional Project Management Division removes the pressure entirely. They coordinate with developers, review plans, oversee site visits, handle upgrades, manage timelines, and ensure the final handover matches the contract.

For many UK clients, this becomes the single greatest value-add—turning a complicated, years-long process into a seamless experience.

Find out how our Expert Project Management division can help you every step of the way.

6. Renting Your Property: Turning Investment Into Income

For buyers who won’t use the property immediately, rental management is essential. A dedicated property management team handles:

• Tenant sourcing & screening

• Advertising & lease handling

• Maintenance & repair coordination

• Utility registration

• Monthly reporting

• Rent collection

This turns your Israeli property into a hands-free investment with both yield and appreciation.

Our Rental Division will ensure your return as soon as possible .

7. Where London Buyers Are Purchasing Today

Different families prioritise different needs—community, lifestyle, access to schools, or future Aliyah plans. Today’s top locations include:

• Jerusalem: Arnona, Katamon, Baka, Talpiyot

• Ramat Beit Shemesh Aleph & Neve Shamir: extremely popular with UK families

• North Tel Aviv & Tel Aviv East: strong long-term appreciation

• Netanya / Ir Yamim: modern, beachfront, excellent rentals

• Ashkelon: value-for-money, high-growth potential

• Kiryat Gat / Carmei Gat: affordable new builds with strong Anglo interest

• The North: larger spaces, excellent prices, community developments growing

Your best location depends on your timeline, budget, and lifestyle priorities.

See www.israel-properties.com for more options

8. The Bottom Line: Buying in Israel Is Achievable and Rewarding

Despite the differences between the UK and Israeli buying systems, purchasing in Israel is straightforward when you have proper guidance. With the right professionals supporting you—mortgage brokers, lawyers, currency specialists, and project managers—the process becomes smooth, predictable, and deeply enjoyable.

For many families, buying a home in Israel is not only a financial investment but a long-term emotional and spiritual one. With demand rising, strong communities expanding, and limited supply in key areas, now is an ideal time for London buyers to explore the market with confidence.

About Israel Properties by Stamelman & Partners

Israel Properties by Stamelman & Partners, headed by Toviyah and Shirley Stamelman, is widely regarded as Israel’s leading Anglo-focused real estate firm. With over 25 years of experience guiding UK, US, South African , Australian and Local families, the firm provides a fully comprehensive, end-to-end service that includes property sourcing, negotiation, mortgage support, legal coordination, project oversight, and ongoing rental and property management. Known for exceptional transparency, integrity, and white-glove personal service, Israel Properties is the trusted choice for London families seeking to buy or invest confidently in Israel. Their unmatched expertise and strong developer relationships ensure complete peace of mind from start to finish.

To find out more and to book your free consultation www.israel-properties.com info@israel-properties.com +972 50 446 9515