Saudi national UK BTL finance on 3 London apartments

Area
London
Capital Raised
£1.65M

The Scenario

Our Saudi Arabian client owns three unencumbered investment properties in London that he wanted to raise finance against to buy a family home in Buckinghamshire.

Two of his three flats in Kensington are valued at £600K each, the third is valued at £1M.

The properties he’s looking at are around the £5M mark, so we were aiming to raise as much as possible on the rental apartments.

The issues:

  • He’s a foreign national not resident in the UK (though his children are being educated here).
  • His £100K+ salary is paid in Saudi Arabian riyals.
  • As is common with many central London properties, the rental yields for the apartments don’t match their asset value, which reduces the LTV borrowing that can be accessed.

The Solution

In our favour: Saudia Arabia is on the international Financial Action Task Force (FATF) list of countries with the most robust measures against money laundering and the financing of terrorism.

(Unlike neighbouring Bahrain, Qatar, UAE, Oman and Yemen, which are members of the Middle East and North Africa task force, MENAFATF.)

As a HNW borrower, his loan can be stressed at 110% of a five-year fixed rate, instead of the more usual 125% for foreign borrowers (or the 140-145% that UK taxpayers could access).

(The assumption is that, if necessary, he can top up the shortfall in rental income from his other earnings.)

We took the deal to a lender who would stress on the “pay rate” of the actual 3.7% mortgage rate they would offer, rather than the more usual 5.5% five-year fixed rate.

With £1.65M in hand towards his purchase, we will now be looking at setting up a residential mortgage on his new home.

READ OUR BLOG:

Finance for overseas London property buyers: the 3 essential ways we can help

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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