Helping foreign national buyers expand in the UK and generate income

Helping foreign national buyers and generate income

Loan Amount:
£210,000

Property Value:
£325,000

LTV:
65%

Foreign national property investors can struggle to get funding with high street lenders. Even where they already have large portfolios to their names. Foreign national borrowers, based in the UK, turned to us to help expand their British portfolio. They approached us knowing they’d likely face delays with mainstream providers.

The borrowers already held properties overseas and wanted to expand their UK footprint. They wanted to invest in a semi-commercial property to utilise its rental potential. Before this could happen though, a lot of repair work was required to bring the property up to scratch.

Our underwriter got to work assessing the claim. He had to make sure the investors had resources available, and income potential on the horizon to counteract the repair costs.

Making sure repair works would not slow plans down

As the borrower planned to spend a lot of money on repairs, we had to make sure there were clear plans in place. Without careful planning, costs can spiral, and property investors could quicky see their budgets be eaten up. Fortunately, we received a detailed schedule of the works and structural report. Every element of the repair plan was accounted for.

And even with the repair work needed, the property in question held a lot of potential. Long-term agreements were in the works to lock-in rental income and as this presented such a good deal, the borrower’s required our specialised expertise and speed. The opportunity may not have stuck around for long.

To ensure the funding could be issued as quickly as possible, our underwriter assessed the borrower’s wider details. On top of the income this investment would provide, we saw the borrower had a strong financial background to support the plan. This, coupled with a clear exit strategy in place, allowed us to deliver the loan.

We welcome overseas buyers

Britain’s commercial prospects are often utilised by foreign nationals. Our property market allows overseas buyers to take advantage of an economy keen to move on from the pandemic. Many companies want their staff back in the office, while various industries plan to expand.

However, these property investors are likely to face difficulties with mainstream finance. Banks in the UK are struggling to lend to British buyers, let alone those overseas.

Fortunately, we understand that having ties abroad need not slow a deal down. We focus on the tangibility, and strength of the underlying investment. We’ll look at a borrower’s entire picture, and not solely focus on geography. Whether you’re planning to purchase your first ever UK asset, or expand a large portfolio, we’ll be able to support your goals.