Bulgarian national secures London buy to let during lockdown

10th August 2020

Islay Robinson

Bulgarian national secures London buy to let during lockdown
Islay Robinson

Islay Robinson

London remains a top choice for overseas property investors looking for assets that will provide solid returns amid an uncertain world economy. The UK property market weathered lockdown and pent-up demand is helping drive a surge in activity. Low interest rates are providing another boon for borrowers. However, some lenders are being more cautious about the market and many have reigned in appetite for risk.

As such, it’s crucial borrowers use professionals who can navigate the nuances of the mortgage market. Enness provides solutions for clients with complex wealth and borrowing requirements, with bespoke mortgages for the individual needs of the borrower.   

In this case study, we helped a foreign national secure two London investment rental properties at the height of lockdown. The transaction was completed despite the challenges posed by Covid-19 to the market and the client’s own complicated lending requirements. 

Client: Bulgarian national

Country of residence: Bulgaria

Client income: High net worth 

Property location: Nine Elms, London

Property value: Two properties valued at £1.3m each 

Funding required: Maximum

Client scenario

The client is a high net worth Bulgarian national and resident who wanted to expand their property portfolio in London. Enness needed to source financing for two flats in Nine Elms, located within the Battersea regeneration area on London’s South Bank, that were to be used as rentals.  

The deal was on the table as coronavirus and the subsequent lockdown ground the UK property market to a halt. The unprecedented circumstances caused lenders to be nervous and created numerous bottlenecks in the mortgage and valuation process. On top of this, the client is a foreign national looking for a high loan to value (LTV) of 75%. 

Issues to address

Lenders are inherently more cautious around lending to foreign nationals, especially when they live overseas. This is because it can be harder for underwriters to understand the borrower’s wealth and financial background. The client was also looking for a high loan to value (LTV) of 75% on two prime London properties. 

Newbuild flat valuations have been prone to some fluctuation in London over the past couple of years off the back of Brexit. Furthermore, it was a moment of huge market uncertainty created by lockdown and the coronavirus. It was clear that many lenders would not be interested in lending based on these client credentials.  

At Enness, we take the time to wholly understand the finances of our clients. A complete overview allows us to approach the lenders that we know have the required level of risk appetite. 

We were able to match the client with a specialist bank that was happy with the client’s nationality. After we took the time to explain the financial profile of the client, the lender was also willing to lend at up to 75% LTV making it the perfect deal. Valuations at the time were backlogged as a result of lockdown and social distancing measures. But through our lender connections we were able to maintain momentum on the deal with a valuation coming through with only a very small delay. 

The client was extremely happy we had facilitated a smooth transaction and overcome all the challenges at hand. 

Enness has offices across the globe and links to more than 300 lenders, including niche and specialist providers of mortgage finance, meaning we are able to create solutions for clients within a range of circumstances.  

Key figures

Property price: £1.3million x two 

Rate: 3.99% 

Over how many years: 5 years

The client secured their two new investment properties under competitive terms at a time of market uncertainty.  

What can Enness do for you?

The property market in London is experiencing a mini-boom, as investors look for safe haven assets. The strong dollar also makes it a particularly pertinent time for overseas buyers who want properties for investment. 

We have access to hundreds of lenders worldwide that offer a range of solutions for high net worth clients and those with complex financial backgrounds. Our clients are always provided with bespoke financing at the best cost. 

Contact one of our experts for an initial consultation to find out how we can help you.

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