A British expat living in Switzerland wanted to expand her portfolio and raise capital for property investment by purchasing a UK holiday let. We helped her secure the funding despite the complexities of foreign currency repayments and a unique leasehold structure.
The Challenge
The client faced several obstacles in securing the desired financing:
- Foreign Currency Repayment: The client wanted to pay the mortgage using Swiss Francs, but most mainstream lenders only accept GBP.
- Portfolio Complexity: Some lenders were hesitant to lend, viewing the client as a complex BTL portfolio landlord.
- Complex Income Mortgage: The property had no rental income history, making it challenging to prove affordability through traditional underwriting.
- Leasehold Issues: The property’s proximity to a neighbouring hotel created unique leasehold conditions.
The Strategy
To overcome these obstacles, we structured the deal by leveraging our network of specialist private banks:
- Specialist Lender Alignment: We approached a niche lender that regularly handles complex expat and holiday-let cases and is open to foreign currency payments.
- Affordability Assessment: Despite the lack of historical rental data, we worked with a local property agent to supply projected income levels, which satisfied the lender’s underwriters.
- Legal and Credit Negotiation: We liaised directly with the lender’s legal team to ensure they were comfortable with the neighbouring hotel as the property’s freeholder, allowing residents access to leisure facilities without breaching terms.
- Loan Structuring: We structured the borrowing as an interest-only facility to maintain cash flow for the client’s broader investment strategy.
The Results
- Total Loan Amount: £642,450
- Loan-to-Value (LTV): 61.31%
- Term: 20 years
- Mortgage Structure: Interest-only mortgage
- Currency Accepted: Swiss Francs (CHF)
- Key Outcome: The client completed the purchase and achieved their investment goals with favourable terms.
Why This Matters
Securing funding to raise capital for property investment while living abroad can be challenging. By utilising a specialist, bespoke deal structure, the client was able to diversify her investment portfolio without converting her primary overseas income or disrupting her UK buy-to-let portfolio.
Speak to a Specialist
Ready to explore your options for an expat, foreign currency, or complex short-term let mortgage? Book a consultation with our team today.