CEO of UK mortgage brokerage Enness Private Clients, Islay Robinson, advises residents on investing in London property
At Enness, we’re seeing a lot of expats and foreign investors from the Middle East wanting to move into either the buy-to-let investment market in the UK or purchase a second property for their own personal use. The worldwide press is always promoting the fact that the prime central London market is buoyant and rife for investment and this, as ever, remains the case.
Investment in London might not be able to sustain the fantastically rapid return we’ve seen the past few years but the secure and stable appeal of bricks and mortar in the UK’s capital remains. Indeed, it is predicted that by 2018, the UK property market in its entirety will rise 25.7 per cent, showing steady progression.
It’s clear to those of us at Enness Private Clients that many opportunities lie in the London property market for both residents of Abu Dhabi and expats living here – both in the high end and mainstream markets, particularly if financial borrowing is leveraged and constructed in an advantageous way.
From an expat or foreign investment perspective, London property continues to remain the stronghold location of choice in which to invest. A combination of political factors and taxation regimes or simply the appeal of London’s metropolitan attractions drives investors towards the safe haven of prime central London.
London has a consistently growing cosmopolitan appeal and its easy accessibility and steady market makes it a safe place in which to make sustainable investments.
For residents of Abu Dhabi, hopping up on this ladder as part of your private investment plan is certainly advisable. But, how exactly are you to penetrate the marketplace of this international mecca without the stronghold of staunch banking relationships in the UK?
For clients of ours from Abu Dhabi, one particular new million pound lender who has recently entered this space jumps to mind. This private bank caters to this exact market and we are one of only three brokerages in the UK with whom they have a relationship.
This private bank is completely unfazed by international buyers and is keen to drive new business. It has strong lending terms and no exit charges, which means that it enables the client to reduce the debt or refinance should their circumstances change. Furthermore, the bank does not necessarily require AUM (assets under management), which is always an advantage in this space.
That’s not to say that this lender is your only option – it’s always best to explore your circumstances fully with a well-connected broker.
Besides making sure when you explore your finance options that you are working with the right broker, it’s also important to remember that in order to receive bank approval you will need to evidence the source of your income. For those that are employed, this is easily provable by salary certificates and a contract of employment, whereas those that are self-employed will need their status to be validated by an established accountant. The bank will also want knowledge of your worldwide assets and liabilities. In order to expedite this process, we typically ask our clients to complete a statement of liabilities.
If you are purchasing property from overseas, it is also beneficial to engage the services of a property finder when you can’t be hands-on to oversee the purchase from Abu Dhabi.
Enness has a number of partnerships with experts in the prime central London space. We are also more than happy to recommend you to other ancillary services to make the buying process run more smoothly.
If you are an Abu Dhabi national or an expat interested in purchasing property for investment puposes in London – or indeed, elsewhere in the UK – and you would like to explore your financing options, please do get in touch with Enness. We know you don’t work nine to five, so neither do we. We are always available to take your calls:
(+44) 203 758 9393.
