The UK buy-to-let (BTL) market has traditionally been considered a lucrative area for investors from around the world. Unfortunately, whilst property in the UK still represents a very good investment, increased regulation in the BTL arena has made it more difficult for foreign clients to secure large mortgages. This has created a problem for clients with existing portfolios, who often struggle to refinance when necessary.
This was the situation faced by a recent Enness' client, an Indian national living in Dubai. This client was a successful businessman and had a high personal net worth. However, he was struggling to remortgage his portfolio of BTL properties in the UK. His portfolio had a total value of over £2million, and he was looking for the borrowing of approximately 75% loan to value (LTV) across the portfolio.
The properties in question were excellent assets achieving a strong rental income, but this was quite a high LTV to achieve, as clients who do not live in the country are considered more of a risk by lenders. To complicate matters further, one of the properties was also owned in a British Virgin Islands (BVI) company, an offshore structure which many mortgage lenders are not comfortable working with.
After meeting with this client, I felt confident our brokers in London could help, as they have excellent relationships with specialist lenders able to cater to clients from around the world. I referred the case over to my colleagues in the UK and they set to work researching lenders. They were able to source a lender who was happy with the client’s background, who offered a lending facility at 2.75% + LIBOR on an interest-only basis.
This was an excellent result, and a clear example of how having a wide knowledge of the specialist lending market can make a real difference when it comes to applying for property finance in the UK. If you are a UAE resident with a BTL portfolio in the UK, I would be happy to meet with you at your convenience to discuss your case and see if our London team can help.
France is one of the most popular property markets for foreign nationals: we are all aware of the chic appeal of Paris, the enduring allure of the Riviera in the summer or the freshness of the mountains in winter.
Covering everything from search and negotiation to making an offer and the legal processes, the guide will help you fulfil your dream of property ownership in France.