- Client: Egyptian national
- Properties: Two London buy-to-let apartments
- Property value: £1.315M
- Loan amount: £657.5k
- Product: 5-year interest-only
- Margin: 4.50% p.a.
Enness was approached by an Egyptian national looking to raise finance against two unencumbered London investment properties held in their personal name. The client was based permanently in Egypt and wanted to release equity from the properties while retaining them as buy-to-let investments.
The client’s circumstances meant the transaction did not fit neatly within conventional lending criteria. They were approaching retirement, had limited UK financial ties beyond the two properties and generated their income through the hospitality sector. With no additional UK footprint, the pool of suitable lenders was relatively small.
After discussing the circumstances in detail, it became clear that a conventional retail or private bank was unlikely to support the proposed structure. Enness therefore focused on specialist and alternative lenders with experience considering international borrowers and UK property.
Following discussions with a number of potential providers, Enness identified an offshore credit fund with an appetite for UK mortgages for foreign nationals. The lender was comfortable considering the overall circumstances and the strength of the underlying property security.
The resulting facility provided £657.5k against a combined property value of £1.315M. The mortgage was structured on a five-year interest-only basis at a margin of 4.50% per annum.
While alternative finance can carry higher pricing than mainstream mortgage lending, the specialist approach provided a workable solution for a borrower whose circumstances fell outside the usual criteria of retail and private banks. The case demonstrates the importance of identifying a lender with the right appetite rather than relying solely on standard mortgage providers.
Enness works with specialist lenders across the market to help international borrowers explore finance against UK property. Each application is assessed individually, with available terms depending on the borrower’s circumstances, property, income and lender criteria.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, valuation, due diligence and lender criteria. The terms described relate to a historical transaction and are not indicative of current or future pricing.
Risk Warning:
Taking out a mortgage involves financial risk. If you do not keep up repayments, property provided as security may be at risk. Borrowers should consider affordability and the implications of interest-only borrowing before proceeding.
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.
