If you’re based overseas, one way to invest in UK real estate is by setting up a special purpose vehicle (SPV). This is usually a company or a trust, which owns the property. The benefits of doing so will depend on the tax legislation at the time and therefore it’s vital to take specialist advice when considering your options. When it comes to borrowing money through these SPVs it’s certainly possible, but it’s not straightforward and requires specialist advice from a team of brokers experienced in this field.
Case profile
Our Associate Director Mark Pattanshetti was recently approached by a client with a particularly complex set of circumstances. They wished to refinance their London buy to let property, which was held in a trust, in order to clear a bridging loan. However, their time frames were incredibly tight, and they needed the money within 14 days. To add to the complexity, the clients – who lived and worked overseas – were facing legal action and significant financial penalties if they did not clear their existing loan.
Solution
Mark was able to use his knowledge and our network of lenders to find a bridging finance specialist which could work quickly and use specialist legal counsel to understand the trust. The lender’s underwriting processes were minimal and flexible and were able to accommodate all of the client’s circumstances, successfully processing the case within 10 working days.
Deal Highlights
| Loan amount: | £1,032,500 |
| Annual interest rate: | 10.80% fixed |
| Loan To Value: | 54% |
| Term: | 12 months |
| Type: | Interest Only |
| Loan purpose: | Refinance |
| Lenders arrangement fee: | 2% of the loan amount |
| Early repayment charge: | No penalty after the first 3 months |
10.80% p.a. fixed throughout the term. Annual interest paid in advance of £111,510.00. The actual rate available will depend upon individual circumstances and may not be available to everyone. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate some aspects of bridging finance.
