I recently helped a British national living in Thailand finance two unencumbered leasehold buy to let properties based in North London. This client had been a UK non-resident for quite a few years and was now living in Bangkok with her husband.
Actual affordability was certainly no problem for my client, yet her only income was the rental from these two (plus one other) rental properties in London, and luckily, all her other expenses were taken care of by her husband. My client was looking to remortgage the buy to let properties so she could use the funds to purchase shares in a Singapore-based pharmaceutical firm, rather than use them to invest in the UK.
This proved a problem to the majority of lenders we approached, however, as they were unhappy to lend money if it wasn’t going to be invested in the UK or used to buy UK property. Not only this, when it comes to unencumbered properties, it can be hard tricky to release equity whenever you would like, as lenders are often cautious of a client’s affordability and their plans to invest or sell the properties on.
Taking all this into account, the fact that this client had been a UK non-resident for quite some time added to the challenge, as it would usually only be offshore lenders willing to arrange this type of finance.
Despite this, we were able to use our close relationship with a UK lender to come to an agreement, who was willing to offer the required loan amount required of £117,500 based on the valuation of each property at £235,000.
We managed to secure the buy to let remortgage at a fixed rate of 4.49% at 50% loan to value. This was on an interest only basis and used the sale of property as the repayment method.