Expat buy to let property portfolio remortgage

THE SCENARIO

An expat buy to let property portfolio remortgage is not the easiest mortgage to tie together. This expat client had retired in South-East Asia and was aged 74, both of these being restrictive factors.

The client owned a portfolio of properties in London comprising of various houses and flats. Their cumulative value was approximately £4.5 million and he owed £2 million against them.

He was seeking a like for like expat buy to let property portfolio remortgage – the client needed a better rate, an improved banking relationship and greater stability.

I mentioned my client’s age being an obstacle. However, as a buy to let landlord with an income from renting out these properties my client was at an advantage in this respect. One of the main restrictions in securing mortgages for the elderly is that they tend to have no income outside of their pension. The other problem is lenders become wary of offering longer term mortgage.

An additional factor was that some of the properties within the portfolio were non-standard – this means they may have been ex-council or built in a non-standard way.

Due to these reasons, placing this case with a lender was difficult and time-consuming.

OUR SOLUTION

I approached a lender  I knew would listen to the complete case and allow me to present the wider story outside of the key facts and figures.

I spoke to a challenger bank and explained to them that even though a couple of the properties in the portfolio were non-standard they were still in good locations and were sufficient as security for the loan.

After much due diligence the bank agreed to make an offer subject to various conditions. My client was very happy as it meant he could forge a proper relationship with a forward-thinking bank. The terms we arrived at for this expat buy to let property portfolio remortgage were 2.9% over 3 month LIBOR on a 5 year term. Considering the circumstances this was an exemplary rate.