£850,000 Loan to a Client Requiring a Unique Ownership Borrowing Structure

• Client: UK National and Resident, Polish National and Swiss Resident
• Property: London residence valued at £1,000,000
• Loan: £850,000
• LTV: 85%

Enness was approached by a client looking to acquire a residence in London while relying primarily on self-employed income earned in Swiss francs for affordability. The client was a Polish national and Swiss resident, creating a cross-border financing requirement, and also had specific considerations around the property's ownership structure and the potential tax implications of the purchase.

The property was valued at £1 million and the client required borrowing of £850,000, representing an 85% loan-to-value ratio. Achieving this level of borrowing while relying on foreign self-employed income required careful lender selection, particularly given the additional considerations associated with income earned in a foreign currency.

Swiss franc income can present additional challenges for lenders because exchange rate movements can affect the value of income when converted into the currency of the mortgage. The client's self-employed status added another layer of complexity, as lenders needed to understand the underlying income and its sustainability rather than simply relying on a standard employed salary.

The client's Swiss residency also meant that the application did not fit the profile of a straightforward domestic UK mortgage. In addition, the client had specific requirements regarding the property title and did not wish to be included on the title. These considerations meant that the financing structure needed to be carefully coordinated with the client's wider legal and tax requirements.

Enness reviewed the client's circumstances and used its network of specialist lenders to identify a lender able to consider the combination of foreign self-employed income, Swiss residency and the required high LTV. By presenting the client's financial position clearly, we were able to secure £850,000 of finance against the £1 million property, allowing the client to proceed with the acquisition while retaining a significant proportion of their wealth overseas.

Enness also worked alongside the client's tax and legal advisers to ensure that the proposed financing and ownership arrangements were considered in the context of the client's wider circumstances. This was particularly important given the cross-border nature of the transaction and the client's wish to structure their involvement in the property appropriately.

The resulting 85% LTV mortgage allowed the client to acquire their London residence while relying primarily on their Swiss franc income for affordability. The case demonstrates the importance of working with lenders experienced in international and complex income profiles when standard UK mortgage criteria may not accommodate a borrower's circumstances.

If you have foreign income, overseas residency or a complex ownership requirement and are looking to finance a UK property, speak to a mortgage specialist to discuss your circumstances.

Risk Warning:
Mortgages are secured against property and the property may be repossessed if repayments are not maintained. Borrowers receiving income in a foreign currency may also be exposed to exchange rate movements, which can affect affordability and the cost of servicing the mortgage.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Enness does not provide tax or legal advice and clients should seek independent professional advice where appropriate. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.