The application was put through in joint names for two Foreign Nationals. Both clients resided in the UK on working visas.
The applicants had previously purchased a mixed-use pub/residential property on a Bridging loan. They had refurbed it and brought it up to a high spec. Pubs are difficult to finance generally, and the flats above are broken up in to 3 x 1 beds and 3 x studios of which some are under 30sqm. The pub was leased and achieving regular rent, and the flats had been let to an agent with guaranteed rental scheme on a 2-year agreement.
Being a whole-of-market Broker, we had the knowledge that some lenders will consider pubs up to a certain loan to value, typically 60%. We also understand that some lenders will accept flats smaller than the usual 30sqm rule, and on top of that will allow 2 year leases on a guaranteed rent scheme. We covered the exit off the Bridging loan and raised some extra capital on top which allowed the client to reinvest.
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It is possible to get lending on extremely complicated setups and situations that would seen as undesirable to most lenders.
Key things to consider for Expat / Foreign national income:
- Some lenders will accept Foreign Nationals.
- Some lenders will consider pubs up to a certain loan to value.
- Some lenders will allow lending on flats smaller than 30 sqm.
- Some lenders will accept 2 year leases direct to management companies/agents on a guaranteed rent scheme.
If you have any questions about Bridging Finance or Expat / Foreign National mortgages, or would just like a Free Quotation then please call us now on +44 1494 622 555 today. Alternatively please fill in our online enquiry form now and one of our Commercial Finance Brokers will call you back.