Purchasing student property for your bright offspring studying at university has become a clear trend in the high net worth property space.
This is especially true for foreign national clients with children studying in the UK, many of whom are keen to ensure their child has somewhere secure to live when moving abroad. For international parents looking to find a London nest for their child, now is a great time to begin looking into buying a student property in the UK, as there is just six months to go until the commencement of the next university year.
So what are the benefits for high net worth individuals who are buying student property for their children, and how can a foreign national go about securing a mortgage in the UK?
Renting a nice student flat in the UK can be very competitive; research has shown that on average in London university areas, five students at any one time could be in fierce competition for one room. The quality of stock is also poor; there is an inherent landlord aversion to student tenants, particularly for luxury properties, whereas there are a great many properties available to buy.
We have a clear track record of helping Middle Eastern investors purchase student accommodation. For example, we’ve helped a Middle Eastern family purchase a flat in Knightsbridge for their daughter. On the rental market, their daughter would have a limited choice given the competition for rented accommodation and in such a limited search area. Instead, with our help, the family secured a mortgage for a ‘beautiful three-bedroom, 3,500 square foot new-build, a stone’s throw from Harrods’ worth just shy of £12million.
Although your child would certainly benefit from avoiding eye-watering London rent prices for the duration of their studies, purchasing a property in London for your child is so much more than simply student accommodation – it’s an investment.
If you were to purchase the property as a second home, there would be an opportunity to switch over to a buy-to-let mortgage if your child were to vacate following their studies. We have access to all the best buy-to-let rates and can assist you with this transition.
If you’re looking to purchase student property for your son or daughter whilst they study, but also want to understand the benefits for you, please do get in touch. Our specialist brokers have significant experience in this area and would be delighted to help you find the best possible solution.