Overseas Property Bridging Finance

As lenders, we regularly work alongside brokers who have overseas clients in need of offshore loans, as well as directly with the clients themselves. We don’t require the client to have a UK bank account, and if they do not reside in the UK, then we will accept the legal side being done via skype or facetime to speed up the process*.

We understand how tight the timeframes can be and therefore place utmost importance on both speed and quality service. Our dedicated underwriting team will assess the bridging application and respond to the initial enquiry within 4 hours. The underwriter assigned to the case will become the sole point of contact throughout the client’s bridging experience with MFS – they will make sure that the client and broker are up to date at every stage of the process.

*All legal advice must be carried out in the UK, by a UK practicing solicitor. However, delivery of legal advice can take place via Skype or Facetime to benefit the client.

You could use an overseas bridging loan if you are facing a tight property deadline. where traditional long-term options may take too long to provide finance. For example, if you are buying a new build property and you are receiving pressure to complete from a developer, then our offshore loans could see funds in your account in as little as three days.

These loans are for applicants located outside the UK, who reside across the world. Our offshore loans are suitable for borrowers in all countries, except sanctioned states. We accept a range of applicants and circumstances such as:

• Expats
• Offshore individuals / trusts
• Offshore companies
• Foreign nationals
• Complex overseas structures
• Offshore asset to overseas buyer
• Transfer offshore to onshore

You can only use our offshore loans to buy property situated in England and Wales. Therefore, our bridging finance cannot be used to purchase property located in Scotland, Northern Ireland or overseas.

Tax

You will need to account for tax when buying property in the UK from abroad. This includes:

• Stamp duty land tax: SDLT is payable on properties in the UK from £125,000+.
• Tax surcharges: When buying UK property from overseas, you will need to ensure you budget for additional stamp duty land tax fees levied on overseas buyers. On 1^st April 2021, a 2% overseas buyer surcharge came into force.

Property Hotspots

To find the right property for you, there are a few things you may wish to consider:

• If renting, what kind of tenants do you want to attract?
• What type of property are you looking to buy?
• Do you want your property to be in commuting distance to a major town or city?
• What is your budget?

Answers to all of these questions will help determine which area of the UK you are able to purchase your property, and which will work best for you.