I'm an Ex-pat already owning one property, wanting to know how best to buy another property in the UK to rent out?
Posted on 12 August 2015 by Nigel
Dear Sir/Madam, I am seeking specific advice regarding purchasing a property in England. I currently live in China and already own one property (with no mortgage) in Birmingham. I am looking at purchasing a property in London but I am not sure of the best way to proceed. I only have a limited income in the UK, from renting out the property in Birmingham. So in terms of getting a mortgage (for around £200,000) would this be possible as I already own a property? My intention would be to let out the property, so I would be looking at a buy-to-let mortgage. If getting a mortgage is not possible, my other option would be to sell my Birmingham property and then buy the London property without a mortgage. One other query I have is regarding if it would be beneficial for the property to be purchased by my wife who is a Chinese national? Are overseas foreign buyers able to get mortgages? Are there any other tax implications for overseas foreign buyers? Any advice you can give regarding my queries is greatly received. Regards, Nigel
As an ex-pat there are a good number of lenders still in this market, and we can certainly look to assist you in getting a mortgage, though we would need to know the exact figures (valuation, purchase price, income, rental income, etc...) before being able to say 100% if what you are looking to do can be done.
The fact that you already have another property in the UK, is not a hinderance, in fact it is the opposite. The majority of lenders in the ex-pat arena prefer that you have some sort of credit profile / history in the UK, as this gives them a greater level of comfort. The amount of the loan is also based on the rental income that the mortgaged property will generate, and the criteria for Ex-pat's is a little less generous than it is with Buy To Lenders who are UK resident.
With regard to buying the property in your wife's name, as she is a foreign national (and I'm guessing that she has no credit profile, or any other financial connection with the UK) it would make the transcation more complicated and would severly restrict the number of lenders open to you.
Once you have the specific figures mentioned above, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a clearer idea of how we can help.
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