Student accommodation can be an attractive investment for property investors looking to build a diversified portfolio of UK assets. I recently assisted a Middle Eastern investor with a net worth exceeding $30 million who was looking to purchase a student accommodation portfolio in the south of England.
The client was a Saudi Arabian national with limited previous exposure to the UK property market. This created an additional consideration when approaching lenders, particularly as some banks can be more cautious when assessing student accommodation and international borrowers.
The portfolio was valued at approximately £1.5 million, and the client was seeking borrowing of around £800,000 to assist with the purchase. Given the client’s international profile and the nature of the property, specialist lender access was important.
After discussing the client’s requirements with the Enness UAE team, the case was referred to our London office, where our wider lender network could be used to explore suitable funding options.
OUR SOLUTION
The London team identified a prestigious private bank that was comfortable considering both the client’s international background and the proposed student accommodation investment.
The client’s substantial overall wealth was an important part of the lender’s assessment. Rather than considering the property in isolation, the lender was able to take a broader view of the client’s financial position and investment objectives.
The resulting finance provided a route for the client to proceed with the acquisition while establishing a relationship with a private bank for their wider property investment requirements.
The case demonstrates how student accommodation finance can be structured for international investors where the borrower’s wider financial position and the underlying property are both considered. It also highlights the importance of specialist property portfolio finance expertise when an investor is looking to establish or expand a UK property portfolio.
For overseas investors considering UK property, international mortgage expertise can also be valuable when identifying lenders familiar with cross-border borrowers and their wider financial circumstances.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Property and other assets used as security may be repossessed if repayments are not maintained. Property values can fall as well as rise.
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.
