- Client: US financial trader
- Type of Property: Central London residential home
- Value of Property: £10 million
Hectocorn helped a Wall Street firm executive purchase a London home ahead of their move to the city. The exec was taking a new role in a London trading firm and was short on time to find and manage the financing of a property. So they turned to Hectocorn to provide specialist brokerage assistance.
Foreign Buyers’ UK Property Search Challenges
Few restrictions are imposed on foreigners looking to buy property in the UK. That means anyone of most nationalities can purchase a home without a visa, although they will require one if they intend to live in the property. However, foreign buyers will likely be subject to more rigorous identity checks and require more thorough documentation.
The New York exec was looking to move to the UK permanently, so they required a residential home. However, it can often be challenging for foreign buyers to find the most appropriate lender and agree on favourable rates and terms, typically facing challenges like:
- Scams and fraud: Foreign buyers may lack knowledge of the most reputable agents and sellers and may not understand local laws and property regulations.
- Survey commissions: A lack of local knowledge can lead to legal issues, including problems with home survey commissions, discovering maintenance issues and obtaining a mortgage.
- Buying property chains: Foreign buyers may struggle with their offer being outbid by another buyer or the deal collapsing completely. This can be caused by problems in the sale chain, which sees their deal affected by other parties’ property purchases.
- Dual taxation: US nationals looking to buy property in the UK can struggle to secure a loan through traditional lenders due to dual taxation. Individuals residing in two countries simultaneously or non-residents with income and gains from another country may be liable to pay taxes in both countries. For example, a US resident earning a wage in the UK and rental income in the US may have to pay tax in both countries. Or, a US resident living in the UK could have income from the UK but remain a tax resident in the US.
To avoid these pitfalls and get value for money, foreign buyers must gain access to specialist lenders and organisations with expert knowledge of the local market.
Financing A Luxury London Property For US National
The buyer wanted a property in a central location that gave them easy access to work and all London’s lifestyle benefits. They identified a luxury three-bedroom penthouse apartment in Eaton Square, a residential area in Belgravia close to Chelsea and Westminster, valued at £10 million. Eaton Square is the largest square in London and is frequently referred to as the most expensive location in Britain in which to buy property.
Hectocorn used its extensive network of niche lenders to introduce the buyer to a private bank with expertise in high-end properties. The lender carried out a comprehensive review of the buyer’s financial circumstances, existing assets, income streams and liabilities to confirm they were an experienced and reliable investor.
Hectocorn worked with the lender to negotiate a residential mortgage that leveraged the buyer’s significant assets to make the lender comfortable with a high loan-to-value ratio and favourable rates and terms. These factors included:
Dry Lending: Most private banks require buyers to use assets under management as security against their mortgage agreement on a high-value property. However, specialist lenders may consider more diverse income streams, including asset-based lending, business profits, international earnings and investment returns. We used our vast network to introduce the buyer to a private bank with experience providing mortgages on luxury homes for non-UK residents. We secured a dry lending agreement that utilised the buyer’s wealth portfolio to secure a residential mortgage without requiring assets to be transferred.
Fixed Repayments: The buyer wanted to guarantee regular, fixed payments through the mortgage agreement. Our team leveraged the buyer’s income to negotiate a fixed 70% loan-to-value (LTV) ratio, which guaranteed future monthly payment values and avoided the risk of fluctuating payments that come with variable interest rates. This was critical to providing financial clarity for the buyer and certainty of repayment for the lender.
Secure Your Dream Home With Hectocorn
Hectocorn specialises in securing bespoke financing solutions for UHNWIs looking to purchase prime London real estate. Our team of experienced brokers has extensive knowledge of the London property market and strong relationships with private banks and specialist lenders operating in the high-value mortgage sector.
Our vast network of lenders unlocks competitive rates and terms for £10 million-plus mortgages. Our team enables investors to structure complex financial arrangements that optimise their borrowing potential, providing end-to-end support throughout the mortgage application and property purchase process.
Discover how Hectocorn can help you finance your dream London home and secure a residential mortgage in a prime property location by getting in touch.
Frequently Asked Questions
Yes. US nationals can purchase luxury residential properties in the UK without a visa, though visas are required if planning to reside there. Expert brokers like Hectocorn simplify the process and connect buyers to private lenders.
Foreign buyers often encounter issues such as scams, complex property chains, survey costs, and dual taxation. Hectocorn helps navigate these risks and secures optimal financing options.
Hectocorn leverages specialist lenders and private banks to arrange high-value mortgages with competitive rates, including asset-based dry lending and fixed repayment options.
Prime locations include Eaton Square, Belgravia, Chelsea, and Westminster. These areas offer prestige, convenience, and strong investment potential.
Hectocorn offers bespoke financing solutions for UHNWIs, deep market knowledge, and access to niche lenders. We manage the end-to-end process, ensuring secure, high-value mortgage arrangements.
Yes. Private banks provide tailored high-LTV mortgages, fixed repayment structures, and asset-based lending solutions that traditional lenders often cannot offer to non-UK residents.