Navigating complex properties in niche lending markets

From thatched properties to timber frames and even second homes, non-traditional homes could present issues when securing a mortgage. These types of properties are more likely to require higher deposits and potentially attract higher rates. Add an expat client into the mix, and you’ve found yourself a very complex case.  

Expat mortgages still typically require deposits of 15-25%, and approval may depend on lenders taking a full-picture approach to the case. As a specialist expat lender, we believe that each case requires careful consideration, ensuring we’ve exhausted every avenue before making a decision. We also believe it’s important for lenders to work with their intermediary partners to ensure criteria is reflective of modern lifestyles.  

Expat lending in action 

A recent case here at the Marsden involved a UK National working in Singapore who sought to mortgage a £1.4 million residential property in the UK. His wife, a foreign national with full rights to reside in the UK, and their two children would live in the property full-time, and he required a loan of £1.12 million (80% LTV). 

The applicant’s foreign income, the type of property and his wife’s residency status meant the case needed a considered and balanced approach. In this case, the property spans 23.5 acres and includes grazing rights. Potential challenges with larger landholdings include future marketability and valuation difficulties due to the lack of compatible properties. Grazing rights also need to be carefully assessed. 

Navigating case complexity 

For expat borrowers, income assessment needs to ensure some flexibility as currency and stability should be taken into consideration. This means we can’t, as lenders, stick to a traditional affordability checklist. 

Equally, non-standard property features (for example, acreage or additional rights) need to be clearly evidenced as ancillary, ensuring the mortgaged property remains completely residential. 

What the outcome tells us 

We approved the mortgage at 80% LTV. This case demonstrates our ability to support expat clients with complex circumstances, while remaining within our policy limits. 

What it also tells us is that expat applications can be successfully supported on non-traditional homes when you consider the full picture and assess applications on a case-by-case basis.  When it comes to larger landholdings, high acreage and additional rights (such as grazing), can be acceptable when it’s clearly evidenced as ancillary, ensuring no commercial use. 

It's this common-sense approach to lending that means we can help support more clients by offering solutions, like our Expat Residential range, that work with modern lifestyles and overseas working arrangements.

For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.