Expat Mortgage for UK BTL
Jun 20th 2017, 11:45 am
#31
Forum Regular
Joined: Aug 2010
Posts: 90
Re: Expat Mortgage for UK BTL
I just opened an account with TD Direct Investing (Internaxx) with very little pain, I also hear the Interactive Brokers are pretty good too.
Jun 20th 2017, 11:53 am
#32
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Expat Mortgage for UK BTL
I like it. I've just started skimming my profits so fancy a fund or similar to pump the profits into.
There's a local UAE based option too that I've been told about.
Problem I have is finding a sharedealing account. My Lloyds one has been restricted because they finally worked out I'm overseas. Either have to tell porkies and set one up with another firm or find an offshore / non-resident account.
There's a local UAE based option too that I've been told about.
Problem I have is finding a sharedealing account. My Lloyds one has been restricted because they finally worked out I'm overseas. Either have to tell porkies and set one up with another firm or find an offshore / non-resident account.
Jun 20th 2017, 12:24 pm
#33
Account Closed
Joined: Feb 2011
Posts: 0
Re: Expat Mortgage for UK BTL
Yes / No.
All of my stuff is invested in UK shares.
I've done some research on one listed in Abu Dhabi that I like the look of for it's dividend....but only just started researching it really.
Aside from that....I'm hoping someone might be able to point me towards a non-resident share dealing site where I can invest in UK or other stocks, from here.
All of my stuff is invested in UK shares.
I've done some research on one listed in Abu Dhabi that I like the look of for it's dividend....but only just started researching it really.
Aside from that....I'm hoping someone might be able to point me towards a non-resident share dealing site where I can invest in UK or other stocks, from here.
Jun 20th 2017, 1:21 pm
#34
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: Expat Mortgage for UK BTL
Yes / No.
All of my stuff is invested in UK shares.
I've done some research on one listed in Abu Dhabi that I like the look of for it's dividend....but only just started researching it really.
Aside from that....I'm hoping someone might be able to point me towards a non-resident share dealing site where I can invest in UK or other stocks, from here.
All of my stuff is invested in UK shares.
I've done some research on one listed in Abu Dhabi that I like the look of for it's dividend....but only just started researching it really.
Aside from that....I'm hoping someone might be able to point me towards a non-resident share dealing site where I can invest in UK or other stocks, from here.
Jun 20th 2017, 1:26 pm
#35
BE Forum Addict
Joined: Sep 2009
Location: Abu Dhabi
Posts: 1,805
Re: Expat Mortgage for UK BTL
Yes / No.
All of my stuff is invested in UK shares.
I've done some research on one listed in Abu Dhabi that I like the look of for it's dividend....but only just started researching it really.
Aside from that....I'm hoping someone might be able to point me towards a non-resident share dealing site where I can invest in UK or other stocks, from here.
All of my stuff is invested in UK shares.
I've done some research on one listed in Abu Dhabi that I like the look of for it's dividend....but only just started researching it really.
Aside from that....I'm hoping someone might be able to point me towards a non-resident share dealing site where I can invest in UK or other stocks, from here.
From overseas you have the TD mob in Luxembourg and Swissquote, not sure who else.
Jun 20th 2017, 2:23 pm
#36
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: Expat Mortgage for UK BTL
Your figures need compounding anually, so 1.1405 * 1.0696 * 1.0889 ... etc. and you'll arrive at the same 65% at the end of year 5 that I quoted. Works out at about an 11% annual return, and can be free of UK Capital Gains if some basic criteria are met (selling whilst you are still non-resident is the main one).
Jun 20th 2017, 5:53 pm
#37
Forum Regular
Joined: Feb 2017
Posts: 45
Re: Expat Mortgage for UK BTL
When did you buy it?
Either you are a slum landlord, or basing your return on the original entry price and not the current market value (or factoring in capital gains not yet realised)
I get 5% yields max in London. This excludes the occasional refresh.
While they have done exactly as per my original financial models on a cash flow perspective (and have given nice capital gains that I did not anticipate) I would still stay out of it right now (in fact I pulled out of a purchase a month ago on a deal that was agreed almost 8 months ago - tax policy, regulations and a soft market). We have even noticed a reduced tenant demand and it's not been easy to push up rents this year.
It's still a great long-term business, but one right now where you have time to sit and watch from the sidelines to see how policy and the market changes.
Either you are a slum landlord, or basing your return on the original entry price and not the current market value (or factoring in capital gains not yet realised)
I get 5% yields max in London. This excludes the occasional refresh.
While they have done exactly as per my original financial models on a cash flow perspective (and have given nice capital gains that I did not anticipate) I would still stay out of it right now (in fact I pulled out of a purchase a month ago on a deal that was agreed almost 8 months ago - tax policy, regulations and a soft market). We have even noticed a reduced tenant demand and it's not been easy to push up rents this year.
It's still a great long-term business, but one right now where you have time to sit and watch from the sidelines to see how policy and the market changes.
Jun 20th 2017, 7:20 pm
#38
Forum Regular
Joined: Apr 2015
Posts: 156
Re: Expat Mortgage for UK BTL
Can you please let me know if my calculations are correct if I decide to invest in BTL:-
Property value + bills (such stamp duty) - £500k
Morgage amount - £357k
Interest @ 3% and interest only mortgage - £875 per month
Income tax based on £1,600 monthly income (incl. the initial tax exempt option) - £238
Therefore total monthly cost is £1,113
If rent is £1600 - That's an annual return of 4.7% right based on your deposit.
And you're not taking into consideration the gains you make on property prices. I understand there is costs such as maintenance but won't the above be a good opportunity.
i understand other investments may offer more return but its more risky.
Waiting to hear peoples thoughts and whether my assumptions above are incorrect.
Property value + bills (such stamp duty) - £500k
Morgage amount - £357k
Interest @ 3% and interest only mortgage - £875 per month
Income tax based on £1,600 monthly income (incl. the initial tax exempt option) - £238
Therefore total monthly cost is £1,113
If rent is £1600 - That's an annual return of 4.7% right based on your deposit.
And you're not taking into consideration the gains you make on property prices. I understand there is costs such as maintenance but won't the above be a good opportunity.
i understand other investments may offer more return but its more risky.
Waiting to hear peoples thoughts and whether my assumptions above are incorrect.
Jun 20th 2017, 11:19 pm
#39
Lost in BE Cyberspace
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,425
Re: Expat Mortgage for UK BTL
I wonder if there are peer to peer lending options for BTL
Jun 21st 2017, 2:42 am
#40
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: Expat Mortgage for UK BTL
Can you please let me know if my calculations are correct if I decide to invest in BTL:-
Property value + bills (such stamp duty) - £500k
Morgage amount - £357k
Interest @ 3% and interest only mortgage - £875 per month
Income tax based on £1,600 monthly income (incl. the initial tax exempt option) - £238
Therefore total monthly cost is £1,113
If rent is £1600 - That's an annual return of 4.7% right based on your deposit.
And you're not taking into consideration the gains you make on property prices. I understand there is costs such as maintenance but won't the above be a good opportunity.
i understand other investments may offer more return but its more risky.
Waiting to hear peoples thoughts and whether my assumptions above are incorrect.
Property value + bills (such stamp duty) - £500k
Morgage amount - £357k
Interest @ 3% and interest only mortgage - £875 per month
Income tax based on £1,600 monthly income (incl. the initial tax exempt option) - £238
Therefore total monthly cost is £1,113
If rent is £1600 - That's an annual return of 4.7% right based on your deposit.
And you're not taking into consideration the gains you make on property prices. I understand there is costs such as maintenance but won't the above be a good opportunity.
i understand other investments may offer more return but its more risky.
Waiting to hear peoples thoughts and whether my assumptions above are incorrect.
Jun 21st 2017, 5:45 am
#41
Account Closed
Joined: Feb 2011
Posts: 0
Re: Expat Mortgage for UK BTL
Your figures need compounding anually, so 1.1405 * 1.0696 * 1.0889 ... etc. and you'll arrive at the same 65% at the end of year 5 that I quoted. Works out at about an 11% annual return, and can be free of UK Capital Gains if some basic criteria are met (selling whilst you are still non-resident is the main one).
HL have positive reviews and I signed up for Swissquote but the registration is a pain. Think I'll go down the route you have. Cheers.
Jun 21st 2017, 6:13 am
#42
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Expat Mortgage for UK BTL
Can you please let me know if my calculations are correct if I decide to invest in BTL:-
Property value + bills (such stamp duty) - £500k
Morgage amount - £357k
Interest @ 3% and interest only mortgage - £875 per month
Income tax based on £1,600 monthly income (incl. the initial tax exempt option) - £238
Therefore total monthly cost is £1,113
If rent is £1600 - That's an annual return of 4.7% right based on your deposit.
And you're not taking into consideration the gains you make on property prices. I understand there is costs such as maintenance but won't the above be a good opportunity.
i understand other investments may offer more return but its more risky.
Waiting to hear peoples thoughts and whether my assumptions above are incorrect.
Property value + bills (such stamp duty) - £500k
Morgage amount - £357k
Interest @ 3% and interest only mortgage - £875 per month
Income tax based on £1,600 monthly income (incl. the initial tax exempt option) - £238
Therefore total monthly cost is £1,113
If rent is £1600 - That's an annual return of 4.7% right based on your deposit.
And you're not taking into consideration the gains you make on property prices. I understand there is costs such as maintenance but won't the above be a good opportunity.
i understand other investments may offer more return but its more risky.
Waiting to hear peoples thoughts and whether my assumptions above are incorrect.
As a non-resident you are unlikely to get a rate of 3% on a BTL at the moment. Most lenders are around 3.5% or above.
Tax info here: https://financialuae.me/2017/06/12/n...n-uk-property/
Jun 30th 2017, 8:05 am
#43
Just Joined
Joined: Jun 2017
Posts: 1
Re: Expat Mortgage for UK BTL
Victor, talk to me! 
I'll drop you a PM.
Info regarding UK mortgages for expats here: https://financialuae.me/2017/04/03/a...rty-in-the-uk/
Getting a mortgage as an expat can be a right main but we'll make it as easy as possible and have a big panel of lenders but if the purchase price is below GBP 150k you will be limited. The lenders other have mentioned won't be able to assist at that level.
Info on main property taxes here: https://financialuae.me/2017/06/12/n...n-uk-property/
I'll drop you a PM. Info regarding UK mortgages for expats here: https://financialuae.me/2017/04/03/a...rty-in-the-uk/
Getting a mortgage as an expat can be a right main but we'll make it as easy as possible and have a big panel of lenders but if the purchase price is below GBP 150k you will be limited. The lenders other have mentioned won't be able to assist at that level.
Info on main property taxes here: https://financialuae.me/2017/06/12/n...n-uk-property/
