US National & Resident Buying a Holiday Let Property in The UK via a Company 

• Client: US national and resident
• Loan Amount: Circa £1.2 million
• Loan-to-Value (LTV): 74%
• Interest Rate: Competitive and fixed

A US national approached Enness seeking finance to purchase a freehold property in the UK. The client's intention was to acquire the building and create long leasehold interests for the individual units. For tax and structuring purposes, the client preferred to purchase the property through a UK limited company. The proposed structure, alongside specific requirements relating to the property's usage and occupancy, made the transaction more complex than a conventional UK property purchase.

A further challenge was the client's US residency and lack of an established financial footprint in the UK. The client had no UK credit history or existing UK banking relationships, which significantly reduced the number of lenders that could consider the application. We therefore needed to identify a lender that could assess the client's US-based income and wealth while also becoming comfortable with the proposed limited company structure and the property's intended use.

Enness reviewed the client's wider financial position, including their substantial US-based income and assets, and approached lenders with experience in international and complex property transactions. We successfully negotiated a circa £1.2 million mortgage at a 74% loan-to-value.

The lender was comfortable assessing the client's financial strength using their US income and assets rather than relying on a UK credit history. The lender was also able to accommodate the client's preferred ownership structure and consider the specific usage and occupancy requirements associated with the property.

The mortgage was arranged on a competitive fixed interest rate, providing the client with greater certainty over their repayments for the agreed fixed period. This enabled the client to proceed with the UK acquisition despite having no established UK banking or credit history.

This case demonstrates the importance of specialist expertise when arranging international mortgages for overseas buyers. A lack of UK credit history does not necessarily prevent an international client from securing UK property finance, but lenders may need to assess overseas income, assets and the wider financial profile differently from a domestic borrower.

Enness has extensive experience assisting US nationals and residents with UK property purchases. Our US international mortgage service is designed to help clients navigate the additional considerations that can arise when financing UK property from overseas, including international income, ownership structures and lender requirements.

Where a property is being purchased through a company or has specific usage and occupancy requirements, careful lender selection can also be important. Enness works with specialist lenders to identify financing structures suited to complex cross-border transactions.

If you are a US national looking to purchase property in the UK, speak to a mortgage specialist to discuss your requirements.

Disclaimer:
This case study is for information and illustrative purposes only and does not constitute financial, tax, legal or investment advice. Finance is subject to lender criteria, valuation, affordability and individual circumstances. Clients purchasing property through a company should obtain appropriate independent tax and legal advice regarding the proposed ownership structure and its implications.