- 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 ensure the property was appropriately protected while they remained based outside the UK.
Enness explained the role of a suitable landlord’s insurance policy and how it could provide protection against risks associated with owning and letting a property. The main challenge was finding an insurer able to consider the clients’ international circumstances and the ownership structure.
Enness was able to source a provider willing to insure the UK SPV, providing the clients with cover subject to the agreed policy terms, conditions and exclusions. International loan protection was also arranged through the UK SPV, providing additional protection in relation to the borrowing.
International insurance requirements can be more complex 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 present the clients’ circumstances, the SPV structure and the nature of the investment, helping to identify a suitable insurance solution.
The resulting arrangement provided the clients with the insurance cover required while allowing them to continue managing their UK investment from overseas. Any future changes to their circumstances or location would remain subject to the insurer’s terms and the 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 able to consider both the jurisdiction and the underlying structure can be an important part of establishing appropriate protection for a property investment.
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.
Insurance 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.
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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.
