- Clients: Overseas nationals and residents
- Structure: UK SPV
- Requirement: BTL insurance and international loan protection
Enness was approached by two business partners looking to establish a UK buy-to-let portfolio through a UK SPV. Both clients were overseas nationals and residents with no existing footprint in the UK, creating additional considerations when arranging insurance for their investment.
The clients intended to remain living overseas while using a UK property management company to oversee the investment. They therefore wanted to make sure the property was appropriately protected while they remained based outside the UK.
We explained the role of a suitable landlord’s insurance policy and how it could help protect the investment against the risks associated with owning and letting a property. The main challenge was finding an insurer comfortable with the clients’ international circumstances and the ownership structure.
Enness was able to source a provider willing to insure the UK SPV, giving the clients greater confidence that appropriate cover was in place for unforeseen circumstances. We also arranged international loan protection through the UK SPV, providing an additional layer of protection around the borrowing.
International insurance requirements can be more difficult to arrange when the property owner is not resident in the UK, particularly where the ownership structure involves a company. Enness worked with the provider to clearly present the clients’ circumstances, the SPV structure and the nature of the investment, helping to establish a solution that was appropriate for their requirements.
The resulting arrangement gave the clients the protection they needed while allowing them to continue managing their UK investment from overseas. The structure was also designed with flexibility in mind should their circumstances or location change in the future, subject to the insurer’s terms and ongoing suitability of the cover.
This case demonstrates the importance of considering insurance alongside the financing and ownership structure when investing in UK property from overseas. For international investors, finding a provider comfortable with both the jurisdiction and the underlying structure can be an important part of establishing a suitable investment strategy.
If you are based overseas and are looking to invest in UK property through a company structure, speak to an Enness specialist to discuss your requirements.
Disclaimer:
Enness does not give general insurance advice or recommendations. Enness Insurance Brokers is a trading style of Vizion Insurance Brokers Limited, which is authorised and regulated by the Financial Conduct Authority under firm reference number 751098. This case study is for illustrative purposes only and does not constitute financial, legal, tax or insurance advice. Insurance cover is subject to insurer assessment, policy terms, conditions and exclusions. Availability and suitability of cover will depend on individual circumstances.
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.
