After the initial cash purchase, the client wanted to raise £2 million against the property to replenish his own funds. While this may seem like a straightforward refinance, several complex issues needed to be addressed.
Firstly, the property was held solely in the daughter’s name, who was a full-time student with no income, making a traditional mortgage application unfeasible. Secondly, the father needed to be on the mortgage to satisfy affordability requirements, but could not be listed on the property deeds due to the tax structure that had been set up. Thirdly, the father’s income was entirely derived from the US, he had no UK accountant, and we had to rely exclusively on IRS tax returns. Both father and daughter had limited UK credit history and no significant UK financial footprint, adding to the complexity of the case.
To solve this, we worked with a private bank experienced in international lending and complex ownership structures. We arranged the mortgage on a joint borrower, sole proprietor (JBSP) basis. This meant that although both the father and daughter were on the mortgage, only the daughter was on the property title, which preserved the tax benefits of the original ownership structure.
The bank was able to assess affordability based on the father’s US income and IRS tax filings, and was comfortable with the limited UK presence of both parties due to the strength of the overall financial profile and the value of the property.
This case is a prime example of how tailored lending solutions can unlock capital even in complex international scenarios. Whether you’re an overseas buyer, an expat, or supporting a family member studying in the UK, we have the expertise and lender relationships to structure solutions that work within your financial and legal requirements.
