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Looking to mortgage HK apartment to fund a house in the UK

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  1. #1

    Looking to mortgage HK apartment to fund a house in the UK

    The current valuation of the property is 8M HKD.

    I'm looking to mortgage 50% of the apartment to buy a property in the UK for 400K GBP.

    I guess I have to consult the mortgage lender about my plans of leaving HK?

    Will the rent of the property (around 20K) be able to cover the mortgage? I have funds in excess to cover if renting doesn't work out for around 5 years. Problem?

    I have absolutely no idea what I'm doing. Any advice would be greatly appreciated.

    Last edited by periphery831; 25-06-2020 at 01:33 PM.
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  2. #2

    Oops, that's 400K.

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  3. #3

    Join Date
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    Quote Originally Posted by periphery831:

    I have absolutely no idea what I'm doing. Any advice would be greatly appreciated.
    Honesty is good! I learn a lot from these threads.
    periphery831 likes this.

  4. #4

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    I've more or less done exactly this. I left HK 6 months ago. My HK property worth $14m, a year ago my outstanding mortgage was around $3m, but I refinanced back up to 50% property value ($7m). It means I pocketed $4m to do what I want with (purchased a property in Australia). As a bonus, when I refinanced with Standard Chartered, they gave me 2.1% cash back on $7m. So a free $150k leaving present.

    I didn't tell SC I was planning to leave HK. I did all this deliberately before leaving as I doubt they will ever lend to me again now that my income not in HK. But I've got a mortgage for 30 years with them, flat is rented out for more or less the same amount as my mortgage repayments, so it's pretty much self sufficient and I can sit back and relax. I havent even told SC I've left HK, just set my address as my office address, set all my mail preferences to email (but my coworkers in HK office still complaining the mail is piling up and I have to visit HK to collect it).


  5. #5

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    Quote Originally Posted by bdw:
    I've more or less done exactly this. I left HK 6 months ago. My HK property worth $14m, a year ago my outstanding mortgage was around $3m, but I refinanced back up to 50% property value ($7m). It means I pocketed $4m to do what I want with (purchased a property in Australia). As a bonus, when I refinanced with Standard Chartered, they gave me 2.1% cash back on $7m. So a free $150k leaving present.

    I didn't tell SC I was planning to leave HK. I did all this deliberately before leaving as I doubt they will ever lend to me again now that my income not in HK. But I've got a mortgage for 30 years with them, flat is rented out for more or less the same amount as my mortgage repayments, so it's pretty much self sufficient and I can sit back and relax. I havent even told SC I've left HK, just set my address as my office address, set all my mail preferences to email (but my coworkers in HK office still complaining the mail is piling up and I have to visit HK to collect it).
    I don’t know about HK banks but in the UK you would have to tell them you are renting a property out if it was mortgaged. They would then give you a less favourable deal. Of course you could just not tell them but it might cause you issues if they found out.
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  6. #6

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    what is the objective for buying in the UK? Is this going to be your investment property? Why not borrow in the UK?


  7. #7

    To live in. Is borrowing 400k more affordable than mortgaging in HK?


  8. #8

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    I really have no clue about this - but from what little I've read, you probably also want to look at the tax implications of taking funds from HK to the UK?

    This is based on the complete and utter mind fuck that is disguised as "tax laws" or whatever they call them in the UK.

    But like I said, I have no clue... just based on the fact that I've been told to watch out for any transactions between HK and U.K. which involve resident/dom or non-dom/whatever....


  9. #9

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    Re moving money from HK to UK, you need a clear paper trail of where the money has come from - or the lawyers / banks are going to be asking lots of questions. Money laundering regulations.

    David4Maths and ArrynField like this.

  10. #10

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    You have not really left HK. You are retaining assets there and presumably a bank account to pay the mortgage. In addition any rental has to be managed. So no need to inform the mortgage company. However you might want to sort out a post box on a longer term basis for your HK bank account and other stuff connected to the retained apartment.


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