This client, a US national and resident, wanted to buy a property in the UK. The property was a freehold building, comprising two apartments. They wanted to buy the entire building, create long leaseholds for both apartments, and rent out the properties on a holiday let basis to maximise the rental income. The client also planned to use the properties for holidays when they come to the UK. They also wanted to buy the properties using a UK Limited company for tax efficiency purposes.
Being a US national and US resident, the borrower didn’t have a credit footprint, address history, or banking relationships in the UK, so most lenders were uncomfortable providing a mortgage.
The further challenges were that the borrower wanted to buy the entire building via a company, let the properties out on a holiday let basis, and use the properties themselves occasionally.
Enness were able to negotiate competitive terms with a lender that could provide the borrowing amount required of above £1M. The lender was happy for the properties to be let on a holiday let basis, could lend to the limited company and were happy for the client use the properties for up to 30 days per year, which worked well for the client.
The lender wasn’t concerned that the client had no credit history/ footprint in the UK, as they have healthy earnings and wealth in the US, which could be brought to the UK to service the mortgage payments in the event of any rental void periods.
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