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Expat buy-to-let mortgage in Hong Kong to rent to "family"


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Hi all,

I am a UK citizen currently residing in Hong Kong. I am looking to buy a property in Oxford and have approached Liquid Expats to assist with arranging a suitable mortgage for this purchase. 

I have been told by the advisor at Liquid that I am not able to take out a buy-to-let mortgage and rent to someone outside of the open rental market (in this case, it would be my girlfriends parents).

My first question is, are there any repercussions if I was to take out a buy-to-let mortgage and rent to a: friend, family or anyone in my girlfriend's family? Bearing in mind, we are not married and have no legal partnership. 

My second question is, has anyone acquired a mortgage through Liquid Expats and have any feedback regarding their service or advice?

Would be grateful if anyone could shed some light on case. 

Kind regards,

Rayman   

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I think your 'girlfriend parents' are probably a bit close for a mortgage company so you would risk being in breach of their conditions. On the other hand they would probably never know. I would insist of dealing with the situation as if they were total strangers - AST, inventory etc and be prepared for difficulties if it all goes wrong!

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Thanks for your response Julia. 

What would the terms explicitly state and to what level of information would I have to submit (if any) to the mortgage company should I opt for a BTL option? I would agree with you on the protection of the AST in that sense too. The BTL mortgage is essentially just a bridge for us as we are planning to pay off the mortgage in full within the first 5 years.

Would there be any repercussions on letting to my girlfriends parents in that case? Just wondering how thin of ice will I bet treading if I was to take this approach.

Much appreciated for your advice!  

P.S. I'm a newbie investor and this will be my first mortgage so bear with me I things are not immediately understood! 

Edited by raymanlam
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  • 6 months later...
On 8/17/2020 at 7:38 AM, raymanlam said:

Thanks for your response Julia. 

What would the terms explicitly state and to what level of information would I have to submit (if any) to the mortgage company should I opt for a BTL option? I would agree with you on the protection of the AST in that sense too. The BTL mortgage is essentially just a bridge for us as we are planning to pay off the mortgage in full within the first 5 years.

Would there be any repercussions on letting to my girlfriends parents in that case? Just wondering how thin of ice will I bet treading if I was to take this approach.

Much appreciated for your advice!  

P.S. I'm a newbie investor and this will be my first mortgage so bear with me I things are not immediately understood! 

Hey Raymanlam,

The good thing is for a "newbie" as you stated, you are asking all of the right questions. Lenders will sometimes state that you can't rent to a related party. Whether they mean an actual blood relative is another thing though. I have had it in the past where a joint application between myself and my girlfriend (for a buy to let mortgage), was questioned as to whether we were just using the mortgage for "backdoor residential" and intended for her to live in the property. Which was madness considering we live in a separate property together and the property in question for the buy to let mortgage was already tenanted and this was a simple remortgage.

I can't comment on the broker you mentioned called liquid expats. But I do know a broker that has vast experience in dealing with expats, especially those in HK. I also work with a couple of other investors from HK so can very much relate to the difficulties you are likely facing when buying back in the UK.


Would be happy to pass on their details if needed!

Cheers

Chris

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