£3.4m London property purchase for US citizen with foreign income

THE SCENARIO

We recently secured finance for a client who wished to buy a family home in London worth £3.4m. The client needed a mortgage on a leasehold property, with the option to refinance once they had raised the funds to buy the freehold.

Our client was an American citizen who was based in the United States, working for an asset management company and whose income was in US dollars. His wife was a stay-at-home mother who already resided in the UK – his was the only household income.

Despite a thorough renovation, adding two bedrooms, the property was down valued quite significantly due to it being a leasehold, which was a barrier for the client when securing the necessary finance.

OUR SOLUTION

However, the client already had a property in the UK and we were able to use that in his favour, engaging with a private bank who didn’t consider the down-valuation of the new property a problem. Our client was required to put money into an account with this lender as the lower value meant he had to pay a bigger deposit to the bank. However, the lender made this more beneficial by largely reducing the interest on the account, while also accepting his income in US dollars.

Overall, the structure of the property and the client’s intentions were an excellent fit with this lender. I managed to secure this on a two-year tracker rate of just 2.49%, allowing our client to purchase the freehold with a 15-year term.