Case Study: Expat Buy-to-Let Purchase by First-Time Buyer
British expat in Saudi Arabia Purchasing a UK Buy-to-Let Property from Family as a First-Time Buyer
- British expat
- Buy-to-Let mortgage
- First-Time Buyer
- Family Member Purchase
- 25% Deposit
- Based in Saudi Arabia
- Employed
- £125k Mortgage
Clients situation
- British expat
- First-Time Buyer
- Family Member Purchase
- Living overseas for 2 years
- Income paid in foreign currency
- Unsure which lenders would consider the application
Main challenges
• Overseas income – paid in Saudi Riyal
• Documentation requirements – Gifted Deposit Letter and Residency Confirmation Letter from Employer confirming client’s address in employer provided accommodation
• Limited lender choice due to Saudi Arabia as country of residence, status as First-Time Buyer with no landlord experience and family member purchase
How Kathryn helped
• Reviewed circumstances
• Recommended suitable lender
• Explained documentation requirements
• Managed application from start to finish
• Liaised with lender and solicitor
Outcome
• Mortgage approved
• Property purchased successfully
• Client able to purchase his first ever investment property from his parents
Kathryns Key Takeaway - Not all lenders offering expat mortgages will accept family member purchases and some lenders require applicants to already own a Buy-to-Let property, so the pool of lenders was considerably narrower in this scenario based on the applicant’s status as a first-time buyer living in Saudi Arabia. Applying to unsuitable lenders could result in credit searches being carried out without improving your chances of success. A broker will be able to search across all available mortgage options and identify a lender who will be comfortable with all the different elements of the application.
Case Study -Irish expat Thailand Self-employed UK purchase
Irish national in Thailand with Self-Employed Income Purchasing a UK Residential Property
- Irish National
- Residential mortgage
- Based in Thailand
- Self-Employed
- £1.05m Mortgage
Clients situation
- Irish National
- Living overseas for 24 years
- Income paid in foreign currencies
- Unsure which lenders would consider the application
Main challenges
• Overseas income – paid in Thai Baht, US Dollar & Hong Kong Dollar
• Documentation requirements – foreign accounts, source of wealth
• Limited lender choice due to Irish nationality, Thailand as country of residence, countries of businesses and currencies of accounts
How Kathryn helped
• Reviewed circumstances
• Recommended suitable lender
• Explained documentation requirements
• Managed application from start to finish
• Liaised with lender and solicitor
Outcome
• Mortgage approved
• Property purchased successfully
• Client’s family able to re-locate to UK while client continued to work overseas for part of the year
Kathryns Key Takeaway - many expat lenders will apply an exchange rate adjustment to income from overseas or will only include a percentage of it in their affordability calculations to account for currency fluctuation risk. In this case the applicant was self-employed, living in Thailand with businesses in Malaysia & Hong Kong. A broker will be able to identify which lenders offer more favourable currency conversions to help stretch affordability calculations when required.
Case Study - Hong Kong British expat – First-time BTL
British expat in Hong Kong Purchasing a UK Buy-to-Let Property as a First-Time Buyer
- British expat
- Buy-to-Let mortgage
- First-Time Buyer
- 25% Deposit
- Based in Hong Kong
- Employed
- £160k Mortgage
Clients situation
- British expat
- First-Time Buyer
- Living overseas for 4 years
- Income paid in foreign currency
- Unsure which lenders would consider the application
Main challenges
• Overseas income – paid in Hong Kong Dollar
• Documentation requirements – requirement for evidence covering 12 months for commission element of income and client needed to nominate a UK-based solicitor who agreed to accept formal notices on client’s behalf in relation to the mortgage
• Limited lender choice due to Hong Kong as country of residence and status as First-Time Buyer with no landlord experience
How Kathryn helped
• Reviewed circumstances
• Recommended suitable lender
• Explained documentation requirements
• Managed application from start to finish
• Liaised with lender and solicitor
Outcome
• Mortgage approved
• Property purchased successfully
• Client able to purchase his first ever investment property
Kathryns Key Takeaway - Not every bank lends to borrowers who live overseas. A broker will be able to assess your circumstances, such as country of residence, income currency etc and identify lenders whose criteria matches. In this scenario, the lender needed to be comfortable with Hong Kong as the country of residence and the applicant’s status as a first-time buyer purchasing a Buy-to-Let without any experience of being a landlord.
Case Study - Australian expat – London BTL lease extension
Australian expat remortgaging a London buy-to-let to fund a lease extension
- Australian National
- Buy to Let mortgage
- Capital Raising
- Based in Australia
- Retired
- £270k Mortgage
- Funded cost of extending the lease from 39 years to 129 years
Clients situation
- Australian national
- Living overseas for 8 years
- Needed to extend lease from 39 years to 129 years
- Income paid in foreign currency
- Unsure which lenders would consider the application
Main challenges
• Overseas income – paid in Australian Dollars
• Documentation requirements – application required board approval for exception to policy of 50 years remaining on lease at end of mortgage term.
• Limited lender choice due to 39 years remaining on lease.
How Kathryn helped
• Reviewed circumstances
• Recommended suitable lender
• Explained documentation requirements
• Negotiated policy exception
• Managed application from start to finish
• Liaised with lender and solicitor
Outcome
• Mortgage approved
• Lease extended successfully
• Client able to extend lease without having to fund from pension pot
Kathryns Key Takeaway - Most lenders cannot accept foreign applicants or properties with only 39 years left on the lease. Short leases (with less than 80 years remaining) make properties less valuable as mortgage security and extending them can be expensive. A broker will know which lenders to approach straight away in this type of situation, saving you valuable time.
