- Client: British National and UAE Resident
- Property Value: Approximately £1 million
- Mortgage: Circa £400k
- Requirement: Buy-to-let refinance
Enness was approached by a British property owner living in the UAE who needed to refinance a UK buy-to-let property. The property was being renovated and was expected to be let again once the works were complete, but circumstances surrounding the previous tenancy had made the refinancing more complicated than usual.
The previous tenants had caused significant issues at the end of their tenancy, resulting in an expensive legal process to regain possession of the property. The client had used borrowing from a Middle Eastern bank to meet the resulting legal costs and had also fallen behind on some UK utility payments during the eviction process.
With the property undergoing renovation and the client looking to refinance before putting it back onto the rental market, the application needed a lender willing to consider the wider circumstances rather than relying solely on a standard credit assessment.
Enness reviewed the situation and used an existing relationship with a specialist lender to identify a suitable route. The lender was comfortable considering the client’s international residency, the circumstances surrounding the previous tenancy and the position of the property while renovation works were being completed.
This allowed the client to refinance the UK investment property and move towards returning it to the rental market, despite the combination of overseas residency, recent financial complications and ongoing refurbishment.
The case demonstrates why refinancing can become more challenging when a property owner is based overseas and has experienced unusual circumstances during a tenancy. A specialist lender with an understanding of international borrowers can sometimes take a broader view of the situation and consider the underlying strength of the property alongside the borrower’s circumstances.
Enness has extensive experience arranging buy-to-let finance for UK property owners living internationally, including clients based in the Middle East. If you are a UK property owner living overseas and need to refinance an investment property, speak to a mortgage specialist to discuss your circumstances.
Risk Warning:
Buy-to-let finance carries risks. Property values and rental income can fall, while interest rates and other costs can change. Borrowers should ensure that the proposed borrowing remains affordable and that rental income is sufficient to support the mortgage. Failure to meet repayment obligations could result in enforcement action against the secured property.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
