This case study explores how I managed to secure a million pound remortgage for an expat client of mine. He had been working in the insurance industry in America for ten years and whilst doing so had rented out his property in Surrey, valued at £2.8 million with £1.3 million borrowed against it. He was planning on returning to England later this year but needed to remortgage his property in the meanwhile as his rate was due to expire.
This was complicated as the property was mortgaged as a buy to let and will be tenanted until the summer when my client is returning to take residence. Bearing in mind the general complexities of obtaining mortgage finance for expats I had my work cut out for me as there is limited availability. There are also numerous barriers for expats who have been residing in America as there are inherent tax complexities on top of this.
What complicated matters more was that my client did not want to commit to a buy to let mortgage for a long period of time when he would soon be taking residence. That meant this million pound remortgage for an expat needed to be buy-to-let until my client moved back to the UK, at which point he needs to obtain a residential mortgage.
I’ve been working as a broker for twenty years and I’ve never created a solution quite like this. I spoke to a private bank with whom Enness have an exclusive relationship and explained my client’s situation at length.
I proposed they blended a buy to let product with a residential one for my client. We agreed that my client would pay his mortgage on a buy to let rate until the point that he could prove he had moved back to the UK and made the property his primary residence once again. His proof of occupation needed to be a household bill back in his name.
A crafted million pound remortgage for an expat is not commonplace, yet with the right presentation the combination of unregulated and regulated can be an excellent solution for landlords wishing to move into their property half-way through the property term.
My client was really happy with this solution and the fact that we managed to secure this exemption on his behalf. The final buy to let rate we agreed on for this million pound remortgage for an expat was 3.49%.