The Client:
The application was put through in joint names for two Foreign Nationals. Both clients resided in the UK on working visas.
The Scenario:
The applicants had previously purchased a mixed-use pub/residential property on a Bridging loan. They had refurbed it and brought it up to a high spec. Pubs are difficult to finance generally, and the flats above are broken up in to 3 x 1 beds and 3 x studios of which some are under 30sqm. The pub was leased and achieving regular rent, and the flats had been let to an agent with guaranteed rental scheme on a 2-year agreement.
The Solution:
Being a whole-of-market and specialist expat mortgage Broker providing solutions also for foreign nationals from around the globe, we had the knowledge and experience to know that some lenders will consider pubs up to a certain loan to value, typically 60%. We also understand that some lenders will accept flats smaller than the usual 30sqm rule, and on top of that will allow 2 year leases on a guaranteed rent scheme. We covered the exit off the Bridging loan with a new semi-commercial mortgage and raised some extra capital on top which allowed the client to reinvest.
Summary:
It is possible to get lending on extremely complicated setups and situations that would seen as undesirable to most standerd mortgage lenders.
Key things to consider for Expat / Foreign national income:
- Some lenders will accept Foreign Nationals.
- Some lenders will consider pubs up to a certain loan to value.
- Some lenders will allow lending on flats smaller than 30 sqm.
- Some lenders will accept 2 year leases direct to management companies/agents on a guaranteed rent scheme.
If you have any questions relating to a Expat Bridging Loan or any type of expat mortgage contact us today to speak directly with one of our CeMAP certified Mortgage Advisors.
Call us today on +44 1494 622 555. Alternatively, please complete this short online form one of our Advisors will call you right back.