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Guest notnowdarling

Buying property in UK Not allowed

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Guest notnowdarling

i been looking into buying some property in the uk as investments and have come up against a hurdle,

ex pat mortgages are tuff to find and then we have been informed we cant buy in the uk with a UK mortgage buy to let, as there is a corporate law 2001 that prevents residents in Australia buying property in the uk unless they use Australian banks or unless they work for multinational companys

anybody know a way to jump the hurdle, i have an offshore bank account and was thinking of setting up an offshore company and buy through the company or set up trust funds for the kids 2 of whom still live in the uk

Thanks for any help:spinny:

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That's news to me ... we have a property in the UK which we bought in 2004 with a UK mortgage, and we weren't living in the UK at the time. And it is at odds with conversations I had with a couple of brokers when I was in the UK last month.

 

I have someone in the UK that may be worth contacting. Send me an email or a PM (click on my name to the left of this post) if you'd like an intro.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Hi Alan

Thank you for that info, someone asked me the same question the other day. Do you have to have a minimum deposit to put down?

Thanks

Kate


If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.

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Hi Kate.

 

I'm not sure of the minimum deposit rules, but I think my contact would.

 

Would you like me to send his details to you?

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Hi Kate.

 

I'm not sure of the minimum deposit rules, but I think my contact would.

 

Would you like me to send his details to you?

 

Best regards.

 

Alan

That would be great thanks:notworthy:

Kate


If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.

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Guest notnowdarling

thanks for the info Alan

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That's news to me ... we have a property in the UK which we bought in 2004 with a UK mortgage, and we weren't living in the UK at the time. And it is at odds with conversations I had with a couple of brokers when I was in the UK last month.

 

I have someone in the UK that may be worth contacting. Send me an email or a PM (click on my name to the left of this post) if you'd like an intro.

 

Best regards.

 

 

 

Hi Alan,

 

 

I would also be interested in ex-pat mortgages in the UK, could you PM me with some details. Thanks.

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Guest annecos

I've just come across this issue too. I was hoping to release some equity from my current UK investment prop to buy another. But am informed by my UK bank (that I've had my mortgage with for 10 years - done whilst in Hong Kong) that i an't release equity or remortgage with them because I live in Oz. I know someone who just bought a Uk investment prop mortgaged thru NAB

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I have just checked my email exchange with my contact from the beginning of this month, which reads as follows:

 

"As a general rule of thumb LTV's are restricted to between 60-75% depending on individual clients.

 

For Buy to Let mortgages its normally best to keep lending to a maximum of 60% LTV as very few lenders are lending above this however it may be possible to secure higher on a case by case basis upto a max of 75%.

 

For second & holiday homes (not let out on assured short hold tenancy agreements) then it normally helps if the client is employed by a multi national company but this is not always required as long as they are in permanent employment and the income is provable.

 

Every case is assessed on an individual basis so it is always worth double checking with me even if you don't feel it will fit."

 

I'll ask the question of my contact about whether there are any legal impediments he is aware of that restrict Australian residents from raising finance in the UK. He hasn't mentioned any thus far ...

 

Anyone who would like to know more about raising mortgage finance in the UK as an Australian resident - please send me an email with your name.

 

I can then send details onto my contact, and will cc you so you can ask questions from there.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Guest guest32776

I thought there was some Australian legislation which prevents even temporary residents gaining a Uk mortgage or even switching mortgage types with the same provider! I certainly have been turned down on this impediment by RBS . Shame... If you want to buy a Uk property in a fragile market yet are forced to borrow at the massively high Oz interest rates the project might look a little less attractive. I would try and use a Uk relative and act as guarantor??

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Do you know the name of this legislation, charliee666?

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Guest guest32776
Do you know the name of this legislation, charliee666?

 

Best regards.

 

Sorry Alan. No I don't.

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OK - I'll keep on researching then ...

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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I would try and use a Uk relative and act as guarantor??

 

 

 

 

Might be a silly question, do you mean using a UK relative as a guarantor when you apply for a UK mortgage whilst still in Australia? Is it really possible and would the lenders accept it?

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Guest AustrAnglian

Thanks guys, this is a really useful thread. Looking at something similar myself. Cheers.

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Guest guest32776
I would try and use a Uk relative and act as guarantor??

 

 

 

 

Might be a silly question, do you mean using a UK relative as a guarantor when you apply for a UK mortgage whilst still in Australia? Is it really possible and would the lenders accept it?

 

I meant the Uk relative, eg, son or daughter takes out the mortgage to bypass the Australian law and then you guarantee the repayments. I haven't tried this but it is a possible route.

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Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Guest annecos

Great thanks AC. I've found some expat mortgage options that as long as you're buying a property or remotgaging a property that you intend to return too in the UK it seems are open to Aus residents. The words used by the mortgage broker are: "This is a main Uk residential mortgage, however the mortgage lender allows you to rent the property out until your intended return to the UK"

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Without knowing the situation in UK it may be a similar process to the Foreign Investment Review Board in Australia.

In Aus if you wanted to sell your house to a foreigner it needs to be approved by FIRB.

At least that used to be the case, and I haven't heard it no longer applies.

 

So I am speculating there is something similar in UK.

A foreigner can buy a property but there are some hoops to go thru to get it approved.


I want it all, and I want it now.

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Nope, no such requirements in the UK - so far as I am aware (as someone who lived there until I was 37 years old).

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Guest josage

Yes I've been told by Lloyds that UK will not give mortgages to residents of Aust; NZ, Portugal & Malaysia whilst they still are resident in those countries. They state that lenders are in huge trouble if they do...

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Did Lloyds TSB tell you that they could lend to Australian residents if they chose to meet Australian regulatory requirements?

 

It is not mission impossible. All it requires is the necessary will.

 

Indeed, there are lenders that are advancing funds to Aus residents.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Guest notnowdarling
Did Lloyds TSB tell you that they could lend to Australian residents if they chose to meet Australian regulatory requirements?

 

It is not mission impossible. All it requires is the necessary will.

 

Indeed, there are lenders that are advancing funds to Aus residents.

 

Best regards.

 

What lenders would that be?

what Australian residents? any on POI to verify that

 

I have exhausted this, i have been to every bank in Australia and the same in the UK

it is an almost impossible situation FACT

 

the only option is to borrow with an Australian bank but they screw you over with the rates at the Australian rate, and that is not going to happen

 

whereas if you borrowed money from a UK bank for an overseas property they would offer you the mortgage in the currency where the property is situated thereby being at the local rate,,

 

fair trade my arse

 

i tried the set up offshore company and it still wouldnt work as an offshore company would need to be underwritten by the owner and if the owner is a Australian resident then your screwed again

 

it is a brick wall

my motto has always been

winners never quit and quitters never win

 

but i got another one like this

if it walks like a duck it talks like a duck then its a friggin duck

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Feel able to send me an email or a PM off forum.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Hi

 

does anyone know if the situation has changed at all. We would like to buy in the UK, even though we re not sure whether we will return permanently or not. I did contact one mortgage broker in the UK and I got this response.

 

"There is an act call the Australian Taxation & Corporation Act which means any lender's wishing to lend to Australian residents (whether they be permenant or temporary) must, by law, hold a specific license which allows them to do so.

 

The lender's that hold this license have 2 rules- either you must be returning to the UK within the next 4 years or you already own a property in the UK. They would then require you to put down a minimum deposit of 25% With regards to returning to the UK, the lender will want this in writing from you and they will check in 4 years time that you have. If you haven't, they will force you into redeeming the mortgage- either by sale of property or by another source of funding."

 

Are there anyways around this?

 

Allan I will try to PM you for details of your broker if that's ok?

 

thanks

 

Simon

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