Property finance for an expat
Finding the solutions to funding challenges
Many ex-pats and foreign nationals choose to buy to let in the UK because of the stable economy and political situation.
Despite both high property prices in the UK and recent tax changes that have affected business models and profitability, buy to let remains an important aspect of the housing market.
Investors may also buy a home in the UK to use as a new main residence for a family during a spell of work in the UK, a pied-á-terre for visiting the country, as well as a purely commercial venture.
Those who can buy a property outright can enjoy yields from rental income that can be high, while property prices tend to rise, offering both income and capital growth.
However, ‘non-dom’s may be at some disadvantage when it comes to tax. The tax rules have become more complicated over recent years – and for the most part, less beneficial. Buying as a non-resident may mean a range of additional tax charges.
It may also complicate matters when it comes to a mortgage. Many lenders will have a blanket ban on lending to non-residents. The good news, however, is a small number of UK specialist lenders will now offer bespoke mortgages and short-term finance designed specifically for non-UK citizens who are buying or refinancing UK property.
At Rangewell we have the expertise to help you find the lenders you need.
The funding challenge
We were recently approached by a British citizen who had made their main home in China, where they followed their career and ran a business.
They owned a buy to let property in the UK outright and saw the opportunity to start building a property portfolio if they could refinance this first property to buy another.
They then discovered that because of their ‘non-dom’ status, this would be a problem.
Lenders want to be sure they will be repaid, and see foreign applicants as presenting an additional risk. Despite the fact that the property owner was a UK national, and despite the fact that they were refinancing an existing property - which would provide the lender with the security they needed - no lender they approached was prepared to look at refinancing the property.
How Rangewell can help
Buying any business with property involves high costs, and it is important to have expert help to get the kind of funding that is right for your plans.
Rates are crucial. Even a fraction of a percentage point can make a substantial difference to what you will actually repay each month, and understanding fees and penalty charges are also vital to avoid extra - and possibly substantial - costs.
Borrowing can be made more challenging still by the fact that there are many different lenders who may be prepared to offer funding. Each has its own approach to interest rates and fee arrangements, and comparing them all may require expert knowledge to fully understand what is really being offered.
At Rangewell, we work with lenders across the market - and we can call on the expert knowledge you need. It lets us ensure that you have the financial solutions you must have when you are considering a commercial property purchase. Our knowledge can not only help you secure the funding you need - it can save you a great deal of cash.
How we helped find a solution
Our property funding specialists looked at the value of the existing property and revenue it was returning, and at the deal our client wanted to set up.
Despite the fact that the borrower was on the other side of the world, we were able to arrange all the necessary paperwork and arranged the application on his behalf
We sourced a 70% loan at 4.4% fixed for two years with a 3.00 % fee, on a 20-year interest-only deal.
The mortgage payments would be substantially below the income achieved from the property and would allow the borrower to fund the purchase of a second property at auction, even after costs had been factored in.
The Rangewell difference
Without in-depth knowledge of the lending industry, it can be extremely difficult to find lenders who can help when there are special circumstances. At Rangewell, we have a network of contacts throughout the property lending market, as well as specialist knowledge that we can put to work for you.
That’s why it is important to speak to the Rangewell team - because it is made up of industry specialists. Whatever your line of work, we have someone who understands the challenges you face - and the ways to answer them.
Our term includes experts in property finance, and our service is personal. It lets you talk to a property funding expert who understands the challenges you face with your project to find a solution that is planned around your business needs.
It often means finding solutions that our clients did not know were possible - but it always means having a property expert working to save you money.
We will discuss your plans, and then we can then call on our network of property lenders, which includes virtually every name in the UK market to get the funds you need.
If you have a property project that needs funding, just call us and one of our experts will be able to discuss your options and work out the most cost-effective ways to provide the funding you want - whatever the challenge your business plans present. And in most cases, our services are absolutely free.