There are many reasons why Foreign Nationals buy property in the UK. A rich culture and history, political stability, iconic locations and excellent schools and universities to name but a few. Add to these the inherent strength of the UK property market and it is little surprise that purchasing an investment property in the UK remains an extremely attractive and potentially very lucrative opportunity for both Foreign Nationals and Expats alike.
Indeed, in the wake of the Brexit referendum the immediate devaluation of the Pound against a raft of international currencies helped to offset the stamp duty tax changes made by George Osbourne that had so disproportionately impacted high end properties in London. Stamp duty of up to 15% on residential investment properties was offset by a similar devaluation in sterling which ensured that foreign national and Expat interest in London, as well as other strongly performing parts of the UK, has remained strong.
Only a select number of specialist lenders are prepared to offer bridging loans to Foreign Nationals and Expats and although the products offered are generally the standard options available to all UK based borrowers the verification processes are understandably more rigorous. All overseas clients will generally require a UK bank account and many lenders will insist on all documentation being completed in the UK at a solicitor of the clients choosing. Income checks will be thorough as will Anti-Money Laundering (AML) checks on any deposit monies.
Factors which help to speed specialist finance applications from Foreign Nationals or Expats might be working for a multinational company or spending time regularly in the UK as well as holding a British or EU passport.
As detailed above, the reasons for Foreign Nationals and Expats investing in the UK market can be many and varied. Expats may simply wish to invest in Buy to Let property as an investment just like many UK based investors and landlords. Foreign Nationals may want to do the same, but they may also be seeking a second home or buying a property for a child studying in the UK in which case they may require a regulated bridging loan.
Whatever the motivation however, many have earned superb returns, particularly in London, over recent years. A recent growing trend is non-UK investors who are looking to invest in commercial property in the UK to take advantage of the more favourable stamp duty regime.
As with all bridging loans the exit strategy is fundamentally important, perhaps more-so given the borrowers are resident overseas much of the time. Rates can sometimes be a little higher than those offered to borrowers permanently based in the UK but as a tool for enabling overseas investors to move quickly into the UK property market or even to refinance an existing UK property Foreign National and Expat loans can be incredibly useful.
At Central Bridging, we are specialists in providing unregulated bridging loans for Foreign Nationals and Expats with a great track record. We are a principal lender offering a range of loan facilities for business use from £100K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales.
For a confidential discussion call us on (03332) 400 506 or e-mail us on email@example.com.