The UK’s universities continue to be a draw for overseas students, with a reported 9% increase in the number of undergraduate students from outside the UK and EU starting their studies in 2020. In total, it’s thought that more than 100,000 international undergraduates started at UK universities this academic year despite the challenges of the global pandemic. Many of those studying here also want to invest in property; however, when their income is earned overseas and they don’t have a UK footprint, this can prove problematic.
Our client already owned a UK property in the name of their two children. However, their existing relationship with a private bank was coming to an end, along with their current mortgage of £1.8m. The client’s offspring did not have the income to service a debt of this size and therefore the client needed to be party to the mortgage. Although they had recently moved to the UK, our client’s business interests were based abroad and they were not a UK citizen or resident for tax purposes, adding an additional layer of complexity to the case.
Our Associate Director Tom Foster sourced a lender who could offer a mortgage on a joint borrower sole proprietor basis. This meant that the son and daughter were on the title deeds of the property, but only the father and daughter on the mortgage. These mortgages are a great way for close family members to help younger generations get onto the property ladder, without the property being classed as a second home, which would incur additional Stamp Duty costs.
The lender was comfortable with income from abroad using the tax returns of the country from which the income was derived. Not only were we able to accommodate the complex nature of the circumstances, our team also achieved the best interest rate on the market.
If you’re facing a similar situation, or just need to review your financing options, don’t hesitate to get in touch.