The case in brief
- Client: British Expat/ living in Australia
- Property type: Leverage capital to purchase an overseas residence
- LTV: 70%
Releasing equity from the UK to use abroad can be fraught with difficulty. Many private mortgage lenders are uncomfortable with clients taking released capital out of the UK. This is the issue that we discovered with our client who was looking to leverage capital in order to fund the purchase of a residence in Australia.
Also, to find out more about property finance for overseas clients, explore our page UK Mortgages For Foreign Nationals.
Our client
Our client had recently relocated to Australia with their existing employer. The client intended to keep his current property in the UK as it had sentimental value, whilst also providing an additional source of income. However, the client was also looking to purchase their own residence in Australia and required capital for a mortgage deposit.
In order to fund the purchase of a property in Australia, the client was hoping to leverage 70% on his UK property. The client had only just moved to Australia and so there were potential difficulties with the lack of long-term residency in their new country of residence. Australia is also a tough jurisdiction due to their tax laws.
Our solution
As with sourcing any expat mortgage, particularly when it involves releasing capital to take out of the UK, there were several hurdles for us to clear.
In the first instance, our client had only recently expatriated to Australia. Many mortgage lenders require a minimum of 6 months residency in the country. Australia’s tax laws are also tough to navigate, with only certain private mortgage lenders offering the flexibility required.
Most pertinently, the client intended to take the released capital out of the UK, something which most private mortgage lenders are not comfortable with.
Ultimately, we created a bespoke mortgage deal with a niche-building society. We negotiated a high loan-to-value mortgage, as well as competitive rates. The lender became comfortable with all the previously mentioned problems, even though it was slightly off the traditional mortgage criteria. We were able to secure a 70% loan-to-value mortgage, as the client had requested.
Leveraging finance to fund the purchase of a property abroad can be difficult. Lenders need to be certain that the client’s profile is suited, particularly if they do not meet other criteria such as length of residency. As a leading international mortgage broker, we specialise in securing UK mortgages for British expats and can help to release equity. GET IN TOUCH TODAY.