Bridging Finance Is Available to Non-UK Residents
Foreign nationals and British expats living abroad can access **bridging finance** for UK commercial property purchases. However, the process involves additional requirements, fewer lender options, and potentially higher costs compared to UK-resident borrowers.
The UK remains one of the most attractive commercial property markets globally, and bridging finance **enables** international investors and returning expats to participate — often with the same speed and flexibility available to domestic borrowers.
This guide explains exactly what overseas borrowers need to know.
Who Qualifies?
Bridging lenders broadly categorise overseas borrowers into three groups, each with different implications:
British Expats
UK citizens living and working abroad. This includes expatriates working in the Middle East, Asia, Europe, or elsewhere.
- Lender appetite: Good. Many bridging lenders are comfortable with British expats
- Additional requirements: Proof of overseas address, employment or income evidence, and sometimes a UK correspondence address
- Rates: Typically 0.10% to 0.25% per month above standard UK-resident rates
Foreign Nationals Resident in the UK
Non-UK citizens who live and work in the UK with the appropriate visa or settlement status.
- Lender appetite: Good, particularly for those with indefinite leave to remain or settled status
- Additional requirements: Proof of immigration status, right to remain, and UK address history
- Rates: Often the same as UK-resident rates, particularly for settled individuals
Foreign Nationals Resident Overseas
Non-UK citizens who do not live in the UK. This is the most restricted category.
- Lender appetite: Selective. Fewer lenders will participate, and terms are more conservative
- Additional requirements: Enhanced due diligence, overseas legal representation in some cases, and more conservative LTV limits
- Rates: Typically 0.20% to 0.50% per month above standard rates
- Country restrictions: Some lenders will not lend to nationals of certain countries, particularly those on UK sanctions lists or with high money laundering risk
**Key Takeaway:** Your nationality and country of residence both matter. British expats have the widest choice of lenders, while foreign nationals resident overseas face the most restrictions. A specialist broker is essential to navigate this market.
Additional Requirements for Overseas Borrowers
Beyond the standard bridging application requirements, overseas borrowers should expect:
Enhanced Identity Verification
- Certified copies of passports: Certified by a UK solicitor, notary public, or the British Embassy in your country of residence
- Proof of overseas address: Utility bills, bank statements, or government correspondence in your name at your overseas address
- UK address (for correspondence): Some lenders require a UK address for communication, even if you live abroad
Source of Funds and Source of Wealth
Lenders must comply with **UK Anti-Money Laundering (AML) regulations**. For overseas borrowers, this scrutiny is more intensive:
- Source of deposit: Full audit trail showing where your deposit funds originated
- Source of wealth: How you accumulated your overall wealth (employment income, business profits, inheritance, investment returns)
- Bank statements: Typically 3 to 6 months of personal and/or business bank statements
- Tax documentation: Tax returns or equivalent from your country of residence
The key is transparency. Lenders are not looking for perfect documentation — they need a clear, verifiable story of where the money comes from.
Legal Representation
You will need a **UK-based solicitor** to act on your behalf. For some transactions, particularly where the borrower is overseas, lenders may require:
- The solicitor to hold face-to-face meetings via video call for identity verification
- A UK power of attorney if you cannot attend completion in person
- Apostilled documents (internationally certified copies) for documents issued outside the UK
Company Structures
Many overseas investors purchase UK property through a **UK limited company or Special Purpose Vehicle (SPV)**. This can simplify the process because:
- The borrowing entity is a UK company, which is familiar territory for lenders
- Annual Tax on Enveloped Dwellings (ATED) and other taxes may apply to residential property held in companies, but commercial property is generally not affected
- Directors still need to pass personal KYC (Know Your Customer) checks
Some overseas borrowers use structures involving offshore companies (e.g., BVI, Jersey, or Cayman entities). While not prohibited, these structures attract additional scrutiny and fewer lenders will participate.
**Key Takeaway:** Using a UK SPV to purchase commercial property often simplifies the financing process for overseas borrowers. Discuss the optimal structure with your accountant and broker before proceeding.
Country-Specific Considerations
EU and EEA Nationals
Since Brexit, EU nationals no longer have automatic right to reside in the UK. However, most bridging lenders remain comfortable lending to EU nationals, particularly those with:
- Settled or pre-settled status in the UK
- A stable income from employment or business
- An established presence in the UK or a clear connection to the UK property market
US Citizens
US citizens face additional complications due to **FATCA (Foreign Account Tax Compliance Act)** reporting requirements. Some lenders avoid lending to US citizens to circumvent the compliance burden. Specialist lenders who are FATCA-compliant can accommodate US borrowers.
Middle East and Gulf States
The UK is a popular investment destination for nationals of the UAE, Saudi Arabia, Qatar, Kuwait, and other Gulf states. Lenders are generally comfortable with borrowers from these countries, provided:
- Source of funds documentation is clear
- The borrower has an established relationship with a UK bank or solicitor
- The property transaction makes commercial sense
High-Risk Jurisdictions
Borrowers from countries classified as high-risk by the **Financial Action Task Force (FATF)** face enhanced due diligence and may find it difficult to secure bridging finance. Countries on the FATF grey or black lists experience the most restrictions.
Your broker can advise on whether your country of nationality or residence presents any specific challenges.
Costs for Overseas Borrowers
Expect to pay more than a UK-resident borrower. The premium reflects the additional risk and compliance costs for the lender.
Interest Rates
- British expats: 0.60% to 1.20% per month (compared to 0.45% to 1.0% for UK residents)
- Foreign nationals in the UK: 0.50% to 1.10% per month
- Foreign nationals overseas: 0.75% to 1.50% per month
Fees
- Arrangement fee: 1.5% to 2.5% (slightly higher than standard)
- Legal fees: May be higher due to additional AML and KYC work, plus the potential need for a power of attorney
- Valuation: Standard fees apply
- Document translation and certification: Budget £500 to £2,000 for translating and certifying overseas documents
LTV
- British expats: Up to 70% LTV (compared to 75% for UK residents)
- Foreign nationals in the UK: Up to 70-75% LTV
- Foreign nationals overseas: Up to 60-65% LTV
Worked Example: British Expat Purchase
- Property: Commercial unit in Manchester, value £400,000
- Bridge amount: £280,000 (70% LTV)
- Monthly rate: 0.85%
- Term: 9 months
- Arrangement fee: 2% = £5,600
- Interest: £280,000 x 0.85% x 9 = £21,420
- Legal and other fees: £5,000
- Total bridging cost: £32,020
Lenders Active in Overseas Borrower Bridging
Not all bridging lenders accept overseas borrowers. Key lenders with appetite for this market include:
- Investec: High-value transactions for international investors with a minimum loan of around £1 million
- Shawbrook: Accepts British expats and some foreign national applications
- Aldermore: Considers expats with clear UK property investment track records
- Hampshire Trust Bank: Flexible on overseas borrowers with strong security and exit strategies
- Allica Bank: Growing appetite for expat and foreign national bridging
Your broker's role is critical here — matching your specific nationality, residency, and circumstances to a lender who will say yes.
Tax Implications for Overseas Buyers
Overseas buyers of UK commercial property should be aware of:
Stamp Duty Land Tax (SDLT)
Commercial property SDLT rates apply regardless of your nationality or residency. However, if the property has a residential element, a **2% non-resident surcharge** may apply (on top of standard rates) for buyers who are not UK-resident.
Non-Resident Landlord Tax
If you let the property, you must register under the **Non-Resident Landlord Scheme** with HMRC. Your managing agent or tenant must deduct basic rate tax from rental payments unless HMRC approves gross payment.
Capital Gains Tax
Since April 2019, non-residents pay **UK Capital Gains Tax** on gains from UK commercial property disposals. The rate depends on your circumstances but can be up to 24% for individuals.
Corporation Tax
If you purchase through a UK company, profits (including rental income and capital gains) are subject to UK **Corporation Tax** at 25%.
Double Taxation Treaties
The UK has double taxation treaties with many countries, which may affect how your UK property income and gains are taxed in your home country. Take specialist international tax advice.
**Key Takeaway:** UK property ownership has significant tax implications for overseas buyers. Take professional tax advice before purchasing, and factor tax costs into your financial modelling.
The Application Process for Overseas Borrowers
The process follows the same steps as a standard [bridging loan application](/knowledge-hub/how-to-apply-commercial-bridging-loan), with these additions:
- Early broker engagement: Allow extra time for the broker to identify suitable lenders and understand any country-specific issues
- Document preparation: Gather all ID, address, income, and source-of-funds documentation early. Translation and certification take time
- Legal appointment: Instruct a UK solicitor experienced in overseas buyer transactions
- AML process: Be prepared for detailed questions about your wealth, income, and the source of your deposit. Respond promptly and completely
- Power of attorney: If you cannot be in the UK for completion, arrange a UK power of attorney through your solicitor
**Expected timescale**: 2 to 4 weeks for British expats; 3 to 6 weeks for foreign nationals overseas. This compares to 1 to 2 weeks for UK-resident borrowers.
Common Challenges and Solutions
Challenge: Bank Statements in a Foreign Currency
**Solution**: Lenders accept foreign currency statements but may require certified translation. Ensure statements show the equivalent GBP value of funds or provide a currency conversion summary.
Challenge: Income in a Non-UK Currency
**Solution**: Lenders will convert at current exchange rates but may apply a discount (typically 10-20%) to account for currency fluctuation risk.
Challenge: No UK Credit History
**Solution**: Bridging lenders are less reliant on credit scores than mortgage providers. Your exit strategy, equity, and property security matter more. However, having a UK bank account and some UK credit history helps.
Challenge: Power of Attorney
**Solution**: A UK solicitor can prepare a power of attorney that allows a trusted representative to sign documents on your behalf. This must be done well in advance of completion.
Challenge: Time Zone Differences
**Solution**: Use a broker and solicitor who are experienced with international clients and can accommodate communication outside UK business hours.
Getting Started
If you are an overseas investor or British expat looking to acquire UK commercial property, [contact Commercial Mortgages Broker](/contact) for specialist advice. We work with lenders who actively seek international borrowers and understand the additional requirements involved.
Our experience arranging [commercial bridging finance](/services/commercial-bridging) for overseas clients means we can anticipate the challenges and structure your application for the best chance of approval.
Frequently Asked Questions
Can a foreign national get a bridging loan in the UK?
Yes. Many specialist bridging lenders accept applications from foreign nationals, either UK-resident or overseas. Terms are more conservative than for UK-resident borrowers, with lower LTVs and higher rates, but finance is available for the right transaction.
Do I need a UK bank account to get bridging finance?
Most lenders prefer borrowers to have a UK bank account, particularly for receiving loan funds and making any payments. If you do not have one, your solicitor's client account can receive funds, but opening a UK account is advisable.
Is the process slower for overseas borrowers?
Yes. Enhanced AML checks, document certification, potential time zone challenges, and the consent process for power of attorney all add time. Allow 2 to 6 weeks depending on your circumstances, compared to 1 to 2 weeks for UK residents.
Can I purchase through an offshore company?
Some lenders will lend to offshore structures, but the pool is very small and enhanced due diligence applies. A UK SPV is generally a more practical and widely accepted structure.
What documentation will I need?
At minimum: certified passport copies, proof of overseas address, 3-6 months of bank statements, evidence of deposit source and overall wealth, and tax documentation from your country of residence. Your broker will provide a detailed checklist specific to your circumstances.
*Written by Matt Lenzie, Founder of Commercial Mortgages Broker. Ex-Lloyds Bank & Bank of Scotland.*