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From renter to holiday let owner
A doctor’s path to property investment
Case studies / From renter to holiday let owner
Summary
A non-UK citizen working in London showcases how smart structuring and the right mortgage can open up property investment opportunities. By setting up an SPV company and securing a holiday let mortgage, this first-time buyer and landlord ventured into the UK rental market despite being an overseas national.
From renter to holiday let owner
A doctor’s path to property investment
A London-based doctor recently took their first step onto the property ladder after securing a mortgage for a holiday let in Manchester. This particular case highlights how non-traditional buyers can successfully get on the UK property ladder, provided they take the right approach.
The applicant
The buyer in question is a doctor working at a London hospital on a £60,000 basic salary. A non-UK citizen with permanent right to remain, they were renting in London while considering their long-term plans.
The property
Initially eyeing the south coast, the doctor ultimately found a suitable property in Manchester for £200,000. But instead of purchasing to live in, they decided to invest in a rental property that could be used as a holiday let. While not a seaside location, Manchester offered a suitable alternative with strong demand for both short and long-term rental properties.
The strategy
The applicant opted to purchase through a Special Purpose Vehicle (SPV) limited company, with their parents each taking a 10% stake in the company and the applicant holding the majority share. They decided this structure would work best for their circumstances.
Key details
Purchase price: £200,000
Deposit: 25% (£50,000)
Mortgage amount: £150,000
SPV structure: Applicant as primary shareholder, parents with 10% each
The application process
As a first-time landlord, first-time buyer and non-UK citizen, the applicant faced potential hurdles, as these are factors that can contribute to making it harder to get a mortgage in the UK. However, this was mitigated by their strong professional background. The SPV structure also worked in their favour.
At Molo, we assessed
Income: £60,000 per annum
Occupation: Hospital doctor
Residency status: Non-UK with permanent right to remain
Company structure: SPV with family involvement
Mortgage outcome
The application was successful, subject to full underwrite and valuation. We were
satisfied that the case met their criteria for a holiday let mortgage.
Key takeaways
1
Non-UK citizens with permanent residency can successfully obtain UK mortgages.
2
A solid professional background can offset the challenges of being a first-time buyer and landlord.
3
Holiday lets can be a good entry point for those unsure about long-term property plans.
A specific case like this demonstrates that with careful planning and the right approach, even borrowers with complex circumstances can get onto the property ladder and become an investor.
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Molo Tech Ltd is registered in England and Wales no. 10510180. Registered office: 84 Eccleston Square, London SW1V 1PX. Molo Tech Ltd is a wholly owned subsidiary company of ColCap Financial UK Ltd that is registered in England and Wales no. 14127877.
Molo Tech Ltd is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 951899.
Molo Tech Ltd is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 951899.