A Foreign National Requires a Large Facility to Keep Refurbishment Plans Afloat

large facility keeps refurbishments afloat

Loan Amount:
£11,990,000

Property Value:
£27,000,000

LTV:
45%

A foreign national investing in luxury in the capital

A broker reached out to us for help with a large refinance facility for a foreign national client against a high value luxurious single asset in Central London. The borrower had a bridging loan on the property which was near maturity and were in the process of completing refurbishment works.

The current lender was not prepared to provide an extension on their facility, so the borrower had to either:

Sell the property in its current condition (incomplete)
find a way to refinance the debt to give them more time to complete the works then sell the property

The borrower wanted to complete the works as soon as possible so funding was needed quickly, given an existing bridge facility was reaching maturity. Market Financial Solutions were able to offer terms to refinance the property, however, we had a strict 3-week deadline to adhere to.

Calculating exit strategy viability

Our underwriter got to work. The first potential hurdle popped up during the legal stage. A few issues were raised, but by working with the legal parties involved, we established there was nothing that concerned us.

We instructed the valuation and solicitors quickly. The valuation report confirmed how much the refurbishment was going to cost. While being a relatively high figure, we were given a clear schedule for when the works would complete from a builder, providing a clear endgame which gave us comfort in the proposed exit strategy.

Our expertise can help foreign investors returning to the UK

With large transactions, we understand the pressure is on to make sure things run smoothly. As the potential costs are so high, refurbishment or legal delays are the last thing investors need.

Fortunately, here at Market Financial Solutions, we have experience in working with multiple different teams and experts in the property world. Where complications arise, which is likely with foreign nationals, we’re adept at resolving them as quickly as possible.

This expertise will likely prove crucial over the coming months and years. Following a few years of decline, international purchases of London property increased slightly in 2021, according to research from Henry Dannell.

As foreign buyers set their sights on UK property, you should get up to speed on how our overseas bridging loans can help those based abroad. If you’re tempted to utilise a large property for it’s renting potential, make sure you’re aware of what regulations you’ll need to follow.

FAQs

Do you have a limit on the loan amount a foreign national can borrow?

We do not impose a fixed limit on the loan size for foreign nationals. Instead, we assess each case individually, focusing on the strength of the asset, the borrower’s profile, and the overall structure of the deal. Whether you are purchasing through an offshore company, trust or as an individual, we can provide large loans for high-value properties or portfolios for up to £50 no matter the client’s nationality. Our flexible approach allows us to cater to international clients where many traditional lenders may hesitate.

Why do some lenders refuse an extension on their loan?

Many lenders are unable or unwilling to extend loans because they operate within rigid criteria or have restrictions tied to their funding structures. This can leave borrowers under pressure if their exit strategy takes longer than planned. At Market Financial Solutions, we take a more pragmatic view. With products like our Bridge Fusion offering, we can build in flexibility from the start, including options for deferred or rolled-up interest and longer terms if needed. Where appropriate, we can also discuss extensions to give clients the breathing space to complete their plans without unnecessary disruption.

Can you refinance a loan held by an offshore company?

Yes, we regularly work with borrowers using offshore companies or trust structures. We understand the additional complexities these cases can bring, including cross-border considerations and enhanced due diligence. Our team has the expertise to navigate these challenges, ensuring we can provide the refinancing solutions needed.

Do you lend against portfolios with mixed asset types?

We can provide funding for portfolios that include a mix of residential, commercial and semi-commercial properties. By taking a holistic view of the portfolio’s value and income potential, we can structure a facility that suits the client’s wider objectives. This approach allows us to support complex refinancing and acquisition strategies, including multi-property securitisation and cross-charging across assets.