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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: Industrious, Office 405, 4th Floor, 70 St. Mary Axe, EC3A 8BE. Molo Tech Ltd is a wholly owned subsidiary company of ColCap Financial UK Ltd that is registered in England and Wales no. 14127877.
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