Expat Commercial Mortgages
There are a lot of people from the UK that have chosen to work overseas on a long-term contract and have been abroad for many years and intend to remain so for the foreseeable future. A lot of expat employees work in places like the Middle East such as Dubai and are often provided with living accommodation by their employer that is heavily subsidized or paid for by the employer.
One of the reasons for moving abroad to work is because their income is substantially more than it would be in the UK. Some already own a property here in the UK but would welcome the opportunity to purchase the likes of a commercial investment property. In order to do so they may require a mortgage so what is the possibility of an expat obtaining a commercial mortgage?
Well, in recent years, an increasing number of lenders have recognized the opportunity that expats present them with and now provide some with commercial mortgages. A lot of expats have a large disposable income and are in a position to not only meet the repayments on their residential mortgages on properties here in the UK that may be occupied by their families but could comfortably afford the repayments on commercial mortgages.
Some will look to invest in one or more houses or flats to then let out but an increasing number are buying the likes of industrial units or office properties to rent out to business owners. One of the attractions of letting out to businesses is that such tenants are more likely to stay in the property for a longer period of time than a tenant occupying a residential property.
The criteria for such mortgages will vary between lenders but you may be expected to prove that you can meet the repayments from your disposable earned income without recourse to the rental income. The minimum advance is usually £25,000 with the maximum being linked to your ability to meet the repayments and the loan to valuation (LTV) that is probably subject to a maximum of 80%.
If you are an expat looking for a commercial mortgage, why not get in touch with us to see if we can help.