Global Talent and mortgages: a journey from Georgia to UK

I am a musician from Georgia, playing country rock. This genre is not very popular in my homeland. When representatives of a well-known record label contacted me, my wife and I decided to take a chance and move to the UK. I gave concerts and prepared material for an album. After two years, I had the idea of taking out a mortgage to buy a flat.

Alexander

Musician from Georgia

Clients’ names and photos have been changed

The UK Global Talent Visa is a standard immigration tool aimed at creative foreigners. This was the type of entry permit to the UK that Imperial & Legal specialists recommended to Alexander, a musician from Georgia, when he and his wife Mariam first came to us two years ago for help in legalising their status.

The task set before us was successfully completed. After moving, Alexander, who works in the country rock style, got down to work on his career. He gathered musicians, began giving concerts, and is preparing material for recording his debut album. Mariam takes care of all organisational matters and manages the young family’s finances.

It seemed that life was back on track, but the housing issue remained unresolved. The couple rented a flat in London, in the Notting Hill area. However, Alexander was unable to focus fully on his music, as his neighbours liked peace and quiet, which interfered with rehearsals and writing new songs. Another problem was the number of rooms. The flat that Alexander and Mariam rented was the largest one. And since the family was expecting a new addition very soon, the question of finding suitable accommodation in London arose. So the guys turned to Imperial & Legal again.

Our clients had savings, and the record company was willing to pay an advance. But they did not have enough of their own money for a good flat in London, so Alexander and Mariam wanted to buy property with a mortgage. Before contacting our company, they contacted several banks, but were rejected by all of them. The main reason was insufficient financial solvency.

Potential problems with the case:

• the client and his wife had moved to the UK only two years ago, so he had not had time to build up a positive credit history;
• the client was interested in an apartment in London, which did not really suit his lifestyle;
• Banks are not very willing to grant mortgages to foreigners.
• the client did not have proof of sufficient income.

Solution

After assessing Alexander and Mariam’s case, we decided not to continue submitting applications to UK financial institutions based on the documents we had already prepared. It was clear that other banks would only agree to a mortgage if we could change their attitude towards our clients.

To achieve this, our specialists asked Mariam to prepare financial statements on Alexander’s income from concert activities. We also contacted representatives of the record company and agreed with them that Alexander would be able to obtain a statement confirming the advance payment and a copy of the contract for three albums.

However, the client had additional sources of income. These included licence fees in his home country of Georgia and rental payments for a large house in the centre of Tbilisi. The contract was officially concluded, so we were able to obtain a statement from the Georgian tax service.

Next, our specialists contacted representatives of major UK banks. We explained that Alexander was a promising and successful musician whose financial solvency could be confirmed by documentation. Several credit institutions agreed to discuss mortgage terms with our client.

With the preliminary consent of the banks and an understanding of the loan amount our client could expect, we began searching for a suitable flat. We found several interesting options, but it turned out that this type of housing was not very suitable for Alexander. An apartment building practically rules out the possibility of pursuing music, so we changed our search criteria, giving preference to houses in a good area — Bexley.

Once Alexander had decided on a bank (we had a preliminary agreement — mortgage agreement in principle) and a specific house, the most important stage of fulfilling his request began — preparing for the mortgage. Our accountants checked all the calculations, gathered a full set of documents, contacted the Georgian tax service and the local bank where Alexander had previously opened an account. Our specialists provided full legal support for the transaction, known as conveyancing.

What our experts checked when choosing a house for Alexander:

• legal status — actual owner, restrictions and debts;
• type of ownership — freehold or leasehold (we were only interested in freehold property);
• additional payments and hidden costs;
• tax burden on our client when purchasing the house and in the future;
• technical condition of the house;
• availability of social facilities within walking distance;
• approximate costs of maintaining the house;
• reports from all necessary government agencies on connected utilities, construction plans in the area, etc.;
• the liquidity of the property.

As a result, we were able to fully prepare for the transaction. Therefore, the procedure for signing the purchase and sale agreement went smoothly, without any significant problems. The bank’s specialists were in constant contact with Imperial & Legal employees, and all issues related to financing were resolved as quickly as possible.

How we worked on Alexander’s case

Conclusions

Alexander’s case is typical for the UK. The United Kingdom is often chosen as a place to live by talented foreigners, digital nomads and expats. With sufficient financial solvency, immigrants seek to buy a flat or house in the UK, as this option is more profitable in the long term than renting. If they do not have enough money (as in Alexander’s case), the only option is a mortgage. This is where problems often arise. UK banks can work with such clients, but they must provide documentary evidence of their income.

It should be noted that you need to be extremely careful when buying property. Typical problems include lack of clarity about the real owner, unsatisfactory technical condition of the property, confusion about types of ownership (freehold or leasehold), and unpreparedness for additional commissions and fees.

Understanding this, Alexander did not take any risks and turned to Imperial & Legal for help. It turned out to be the right decision. Our specialists took full control of the property selection process, communication with the bank, mortgage arrangements, and discussion of the terms of the deal with the seller. As a result, Alexander and Mariam were able to move into a cosy home in a good area of London without any hassle.