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Raimon Land announces new ‘hip’ brand and fourth project launch in Pattaya
(From left-right): Raimon
Land Chief Executive Officer Hubert Viriot, Chief Operations Officer Kitti
Tungsriwong and Deputy VP of Research and Development, Simon Derville talk
at a press conference to discuss the company’s new projects and latest sales
performance and financial results.
Property developer Raimon Land PLC has announced plans
for the launch of a new condominium brand targeted at young professionals.
The first project under the new brand will be launched in Pattaya before the
end of 2011. A second project under the new brand is planned for Bangkok
next year.
The company said it will launch the new ‘hip’ condominium brand towards the
end of this year. The intention will be to develop a number of projects
under the new brand at multiple locations. The brand will embody all of
Raimon Land’s traditional unique selling points including signature design,
international specification standards, personalized finishings, best
practice construction, ring-fenced financing and 24/7 after sales service.
It will be differentiated, however, by a smarter and more compact product
with a ‘hip’ aesthetic aimed at a younger customer base looking for quality,
style and convenience at affordable prices.
Hubert Viriot, Chief Executive of Raimon Land, commented, “This new brand is
part of our diversification strategy and objective to increase our reach in
the booming Thai real estate market. The exceptional Raimon Land standards
are well known among top-end real estate investors. With this new brand we
aim to bring the essential Raimon Land DNA experience to a broader group of
customers. Quality, service and investment security are not limited to the
happy few anymore.”
The first project under the new brand will be a Bt 2.8 billion project in
Pattaya to be launched in the fourth quarter of 2011, with completion and
transfers by the end of 2014. The project will use the company’s existing
seven Rai of freehold land at Pratamnuk Road in South Pattaya. Target buyers
will include weekend home buyers working in Bangkok, holiday home buyers
staying in Pattaya for one to three months per year - and Pattaya residents.
The company has also announced that it is in preliminary negotiations to
secure land for a new high rise condominium project in Bangkok. The project,
which will also be launched under the new brand, will be in the Bangkok
central business district, with good BTS access. The size of the project has
not yet been finalized, but will be between Bt 2 to 4 billion.
Mr. Viriot said, “Since completing the rationalization programme and
reorganization at Raimon Land in 2010, we have embarked on a new strategy of
growth and diversification. We plan on maintaining a rhythm of one or two
new launches per year in Bangkok and Pattaya under several brands each
targeting specific market segments. As a result, the company will expand its
overall market share and be more resilient to market fluctuations. Pattaya
is the ideal platform to launch our new hip brand.”
In addition to its expansion plans, Raimon Land has also released sales
performance, backlog status and financial results for the first half of
2011.
Total secured sales backlog at the end of June 2011 reached Bt 15.2 billion,
of which around two-thirds related to sales at The River project in Bangkok.
The total sales value of all the company’s current four projects is around
Bt 32.3 billion, of which only Bt 3.4 billion has so far been recognized as
sales in the company’s financial statements, and of which only Bt 8.9
billion has so far been received in cash.
Transfers at The River project (100%-owned) are scheduled for next year.
Sales to date at The River represent approximately 74% of the project’s
saleable area. The company reported solid sales progress at the 185
Rajadamri project (also in Bangkok) over the last quarter, with over 42% now
contracted.
In Pattaya, strong sales growth was also reported at the new Zire Wongamat
project, with over 37% sold at the end of June. The Northpoint project, now
100% constructed, reported 76% of saleable area contracted at the end of the
first half.
Under new accounting rules, the company is limited to reporting sales only
on transfers, even if a project is under construction with cash installments
being received from customers on non-transferred units. Under the new rules,
Raimon Land could only register sales on transfers at Northpoint and The
Heights during the first half of 2011, totaling Bt 631 million. As a
consequence, the company’s EBITDA and Net Profit were both slightly negative
for the first six months of 2011 versus positive results of Bt 91 million
and Bt 53 million respectively for the same period last year.
The company’s total net interest-bearing debt (‘Net Debt’) at the end of
June 2011 stood at Bt 5 billion. As a proportion of the company’s market
‘Enterprise Value’, Net Debt has fallen from over 70% in the middle of 2010
to around 56% at the end of June 2011.
Hubert Viriot made the following comments on the company’s financial
results:
“Inevitably the new accounting rules make our revenues and profit figures
look weak. But the underlying fundamentals are strong with over 15 billion
baht, or over half-a-billion dollar’s worth, of sales backlog. In cash terms
we have secured contracts worth nearly 10 billion baht due for collection
over the next few years. With a further 13.6 billion of future sales
potential on existing projects and plans for new launches underway, we are
confident of very significant and sustainable growth in cash-flows going
forward”.
An artist’s render shows
Raimon Land’s Zire Wongamat project in Pattaya.
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Thanachart Bank title sponsors for Thailand Property Awards
Thanachart Bank recently confirmed title sponsorship of
the 6th Thailand Property Awards, underlining the event’s status as a
recognition of excellence in the kingdom’s property sector.
“Partnering with the Thailand Property Awards is one way we can offer
customers quality banking support in association with the kingdom’s best,
upscale developers and real estate companies,” said Jean-Marc Dallaire,
Senior Vice President, Unsecured Lending & Payment Products.
“Thanachart is moving away from simple price competition by offering our
customers real value in the form of a total package of financial products
and services to meet all of their needs surrounding their home purchase
decision. Buying a home is stressful enough and we believe that the real
peace of mind that this program will deliver is what our customers are
searching for.”
Thanachart Bank’s sponsorship is timely, with over a thousand developers,
projects, agents, architects and real estate companies represented on this
year’s list of entries, including many of Bangkok’s top residential
developers.
A select panel of industry judges recently conducted site visits around the
country and selected a shortlist for each category in the awards. One
overall winner in each category will be announced at the Gala Dinner, with
the runners up receiving Highly Commended certificates. Once the winners are
announced, Thanachart Bank also has plans to follow up with a series of
exciting new offers, promotions and events that will bring together buyers
and the property companies voted the industry’s best.
“Following our recent integration with Siam City Bank, housing loans are one
of the key business areas that Thanachart Bank is actively engaging in to
create total financial solutions for our customers,” said Nathapol
Luepromchai, Senior Vice President, Real Estate Secured Lending. “It is
integral to our strategic plan and we aim to become a leading provider to
the Thai housing market.”
A new publication highlighting Thailand’s top residential real estate will
also be released by the event organisers Ensign Media Ltd after the awards
and distributed throughout the kingdom. The Best of Thai Real Estate will be
published annually as an essential guide for investors, featuring full
profile details of every development and company that is a recipient of a
Highly Commended certificate or Winner’s trophy.
The Thailand Property Awards 2011 will be held at the Grand Hyatt Erawan
Bangkok Hotel on 5th November. To reserve a table or book a place at the
Gala Dinner and presentation ceremony, visit www.thailandpropertyawards.com.
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Waterfront Condominium Pattaya official name release
After the press frenzy in recent weeks about the
re-launch of “The Waterfront” project developed by Tulip Group and Park
Plaza Hotel Group, the official name has now been released.
The stunning new High rise Condominium and Hotel at Bali Hai in South
Pattaya has officially been branded as “Waterfront Suites & Residences” and
will have full project management from Park Plaza Hotels Europe.
Press articles had branded the project initially as Park Plaza Waterfront.
In a recent meeting in London, CEO of Tulip Group Kobi Elbaz met with Park
Plaza Hotels to finalise details for the project, including the branding.
With plans now finalised, Tulip Group will begin the full renovation of the
original showrooms to reflect the final upgraded product, and construction
team will start to occupy the site and prepare for commencement of the
piling foundations.
Interest in the project has been extremely high with very positive sales
activity even before the developer has officially launched pricing.
The mixed use hotel and condominium is set to become one of the most iconic
buildings ever built in Pattaya and will overlook the new marina which is
being currently being constructed by Pattaya City Hall and will offer
stunning views of the entire stretch of Pattaya Bay and the surrounding
tropical islands of Koh Larn, Koh Krok and Koh Phai.
This iconic project is due to be officially launched in October, with
construction beginning at the time of launch also.
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New Cetus showroom opens in Jomtien
The new showroom suite is now
open to the general public.
Following on from the success of the Apus Condominium
located in downtown Pattaya, Bellagio Development Co. Ltd. have just opened
the showrooms for their latest project along Jomtien beach, entitled Cetus.
The 49-storey 310 room Cetus Condominium will be furnished in a luxurious
and relaxed style, giving residents the benefit of being right by the beach,
yet with all the amenities of modern living at hand.
 Vichapol
Srisuriyachai, managing director of Bellagio Development Co. Ltd., stands
next to a model of the new Cetus Condominium during the launch of the
project’s showroom, Saturday, October 1.
Cetus is designed to meet every function using natural materials such as
stone and wood for the decorative elements, thus enabling the presence of
nature to be incorporated within the building so that occupants can get a
sense of living close to that environment.
Residents can cross the road and enjoy sunbathing and swimming on Jomtien
beach or use the large salt water infinity edge pool at Cetus whilst
enjoying a drink at the pool bar.
Every room is designed to have a sea view and features a split living room
with large glass doors and windows giving you great views and lots of
natural light.
Cetus also boasts a 5 star hotel style lobby lounge, Internet Wifi and a
fitness and sauna area, car park and 24 hour security.
The project will feature 310
luxury furnished units.
On the day of the launch, managing director Vichapol
Srisuriyachai, along with the marketing agency manager Yuri Riabov, gave us
some more details about Cetus.
Apus had been a great success for them and even during the global economic
crash and the troubles with the yellow and red shirts that project was
completed on time and within budget.
Cetus will build on the success of Apus and as well as attracting the
European and Australian markets, the Thai market is still proving to be very
strong.
Cetus is presently running a presales promotion at just 70,000 baht per
square meter (in Thai name) and Vichapol stated that the style of the
building would attract many customers and investors, and of course another
advantage of Cetus is that due to its location nothing can be built in front
of it to spoil the view for prospective investors/residents.
The one bedroom units will be selling from 2.7 million baht (Thai name) and
payment terms for Thai nationals are 10% on the day of signing then 20% paid
in 36 installments over the next 3 years during construction and the final
70% on the day of transfer.
For foreign ownership it’s 15% on the day of signing then 35% paid over 36
months for the 3 years then 50% on the day of getting the keys.
Construction will begin early next year and with over 50% of the units
already sold, potential buyers will have to act quickly to have Cetus
included in their investment portfolio.
For more information about this development go to
www.cetuspattaya.com.
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Nova Group names Jones Lang LaSalle
as property manager for The Cliff
Rony Fineman, President of
The Nova Group (2nd left), and Suphin Mechuchep, Managing Director of Jones
Lang LaSalle (3rd left), exchange the property management contract for The
Cliff. Also present at the contract signing ceremony were Mr. Kobi Elbaz,
Director of The Nova Group (far left), and Rajneeporn Bishop, Head of
Residential of Jones Lang LaSalle (right).
The Nova Group, one of Pattaya’s leading property
development firms, has entered into an agreement to appoint Jones Lang
LaSalle as the property manager for The Cliff, one of the group’s latest
development projects in Pattaya.
The Cliff is a prime condominium project situated on a 3.7-rai land plot in
the Pratamnak area. The project incorporates 426 luxury condominium units
spread over a 27-storey building with unblocked sea, mountain and city
views. Planned for completion in November 2012, The Cliff has already
achieved a strong sales rate, with a starting price of THB 45,000 per square
meter.
Rony Fineman, President of The Nova Group, said “The Cliff offers stylish
design and has been built to high quality. This, together with the strong
track record of The Nova Group, has helped ensure our customer’s confidence
in the project as reflected by the strong sales rate of over 83% that the
project has achieved so far prior to completion.”
Kobi Elbaz, Director of The Nova Group, said “The appointment of Jones Lang
LaSalle, who are a leading international property management firm to manage
the property will help boost buyers’ confidence further as they can be sure
that the property will be managed to international standard post
completion.”
The three-year contract commits Jones Lang LaSalle to managing the common
area at The Cliff as well as numerous facilities such as swimming pool,
fitness centre, underground parking, 24-hour security and a restaurant.
The Cliff is the latest addition to Jones Lang LaSalle’s portfolio of 3.9
million square meters of property and corporate facilities managed in
Thailand. It also marks the firm’s first property management appointment in
Pattaya since it opened a new office in the city in July this year.
Suphin Mechuchep, Managing Director of Jones Lang LaSalle, said “The Cliff
represents a good start for our business operation in Pattaya as the
developer, The Nova Group, is a respected property development firm, and the
product they will bring to the market is of a high standard.”
Established in 1994, The Nova Group is one of Pattaya’s most successful and
fastest growing property development companies with a track record of
high-profile residential developments including Nova Park (2004), Avenue
Residence (2009) and Nova Ocean View (2010).
With an aim to become the leader in residential development in the Eastern
Seaboard, The Nova Group has also launched a number of new residential
development projects in Pattaya including The Cliff, Amari Residences
Pattaya, The Palm and Novana Residence. All of these projects are planned
for completion between 2012 and 2015.
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Raimon Land sponsors
3rd APHF and Exhibition
Philippine Vice President and
Secretary of the Housing and Urban Development Coordinating Council Jejomar
“Jojo” Binay (left) and Sirirat Ayuwatana (center), Thailand’s Deputy
Permanent Secretary, Ministry of Social Development and Human Security, cut
the ceremonial ribbon for the 3rd Asia-Pacific Housing Forum (APHF) &
Exhibition in Bangkok.
Award-winning property developer Raimon Land was an
official sponsor of the 3rd Asia-Pacific Housing Forum (APHF) & Exhibition,
which was recently held at the Imperial Queen’s Park Hotel. The event was
jointly hosted by Habitat for Humanity and the International Federation of
Red Cross and Red Crescent Societies.
The 2011 edition of the forum was based on the theme of Sustainable Shelter
in an Age of Climate Change and Disasters, directly addressing an issue that
remains prevalent in today’s headlines. The Asia-Pacific Housing Forum was
conceived by Habitat for Humanity with the ultimate goal of fulfilling
shelter needs among those stricken by poverty - an issue that has often been
glossed over in society - through practical solutions based on policies,
finance strategies or even technologies.
“We are proud to play a part in addressing the housing needs of people
across the entire Asia-Pacific region,” said Kwanrudee Maneewongwattana,
Raimon Land’s Deputy Vice President for Marketing. “While Raimon Land
primarily operates in the luxury property segment, we do possess expertise
in the development of high-quality residences that are sustainable and easy
to integrate into the surrounding communities. I believe that through this
project, we were able to turn our experience into a telling contribution for
the Asia-Pacific community.”
Habitat for Humanity Thailand’s Chief Executive, Chamnarn Wangtal added: “We
are pleased to have an experienced property developer like Raimon Land on
board with us. As a long-term sponsor, Raimon Land can provide us with
unique insights in many aspects of the housing dilemma, ranging from
engineering to energy efficiency or even financing.”
The Asia-Pacific Housing Forum is an affordable housing conference &
exhibition for key shelter players in public and private sectors. It
addresses the urgent and widespread problem of substandard housing in the
context of building sustainable homes and resilient communities in a
changing global climate. The 3rd Asia-Pacific Housing Forum agenda includes
the need for workable long-term shelter responses to the impact of disasters
brought on by climate change.
Keynote speakers at the event included Jejomar ‘Jojo’ Binay, Vice President
of the Philippines and Secretary of the Housing and Urban Development
Coordinating Council, and former Mayor or Makati City, Manila.
Aside from an exhibition showcasing relevant financial and technical
services and products, the 3rd Asia-Pacific Housing Forum featured materials
and shelter development services by suppliers of ‘grassroots’ green
technologies and housing.
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Siam Hotels & Resorts: Gearing up for a bright future
Siam Hotels & Resorts, comprising the Siam City Hotel,
Bangkok; Siam Bayshore Resort & Spa, Pattaya; Siam Bayview Hotel, Pattaya;
and The Siam, Bangkok, is planning a refurbishment and development worth
several million baht over the next nine months. The move aims to exploit new
optimism in the Thai tourism industry after its plunge last year and to
reinvigorate the brand moving forward into 2012.
 Marisa
Sukosol Nunbhakdi.
Marisa Sukosol Nunbhakdi, executive vice president of the Siam Hotels, says
developments and renovations will be ongoing throughout the remainder of
this year and early next, adding that many of the tasks being undertaken are
long overdue and will give the prestigious properties a much-needed facelift
and charisma boost in what is fast becoming a very competitive and crowded
tourism landscape.
The locally owned and operated hotel group plans to spend 100 million baht
to renovate its existing hotels in two of Thailand’s most popular tourist
destinations: Bangkok and Pattaya. Bangkok’s grande dame, the Siam City
Hotel (re-launching in 2012 as “The Sukosol”), is to have its foyer, lobby
lounge, Patummat restaurant and public areas revamped in a chic and
cosmopolitan style, but one still reflective of the owning family’s love and
admiration of art.
 Pool
Villa, The Siam, Bangkok.
In Pattaya, the Siam Bayview Hotel on Beach Road beside Central Festival
mall is also to have its open-air lobby updated, along with several types of
guest rooms. These changes will complement the hotel’s already recently
renovated deluxe rooms, six special theme suites and The View meeting space.
Two separate side projects due for completion in January 2012 and April 2012
respectively will see the Siam Hotels launch The Siam (39 rooms) super
luxury boutique property in Bangkok, on the famed Chao Phraya River, and the
Miami-inspired Wave (21 rooms) in downtown Pattaya overlooking the bay. Both
projects are imbued with a unique and stunning art deco theme. Most notably,
The Siam has been designed by the internationally renowned architect and
interior/landscape designer Bill Bensley.
 The
Sukosol - lobby.
Besides revving up its competitive edge, the Siam Hotels is also using the
sprucing up of its existing properties, the opening of The Siam and
development of Wave to launch its new identity: Sukosol Hotels (under the
corporate banner “Sukosol Group”). The new identity will mark the hotel
Group’s transition into a new era of stewardship with a third generation of
Sukosols joining their indomitable mother and company president, Kamala
Sukosol, at the front lines of the family business.
As before, the new brand will continue to focus on creating distinctly
different properties with alluring ambiance, superlative guest comfort,
attention to detail and Thai authenticity.
Tropical Deluxe Pool room at
Siam Bayshore, Pattaya.
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Phuket property: The Village,
Coconut Island may face legal action
According to a report in the Phuket Gazette,
Phuket property development The Village, Coconut Island could be facing
legal action for infringing Thai environmental and licensing laws.
A complaint filed by local residents at Phuket Provincial Hall earlier this
month stated that The Village was releasing untreated waste water into the
sea.
The matter was followed up personally by Phuket Vice Governor Somkiet
Sangkhaosutthirak who visited the island with a thirty person inspection
team.
The Village’s Managing Director, Christopher Gordon, refuted the allegations
stating; “All of the villas have their own (sewage treatment). These all
connect up to the central system. The wastewater is absolutely treated
before it is released to the sea. It is a Thai-government approved system.”
But, after further inspection, the Phuket Vice Governor remained
unconvinced, commenting; “I understand that the project is on-going. We will
need a team to return and inspect the project once it is completed,” he
said.
During the inspection, sudden and prolonged rainfall revealed that large
amounts of silt were running off the construction site and directly into the
sea.
Further investigation showed that The Village’s Environmental Impact
Assessment Report had stipulated that the project must have a 13,000 square
metre enclosure to trap any silt and allow the sediment to settle before
releasing the water into the sea.
Christopher Gordon has now been given up to one month to install the
enclosure. The Vice Governor said that failure to do so will result in legal
action being taken against the resort.
Although Thai law states that this should have been done before any building
work was carried out, Gordon responded by saying; “Please give me some time.
I cannot do it all in one day.”
Another area of concern for the Phuket Vice Governor was The Village’s hotel
license, or rather a lack thereof.
Gordon has been renting out Jacuzzi suites in the project’s second phase,
which is still incomplete. But to comply with legislation the development
must have a hotel license to do so.
“The houses won’t be a problem because they are under the Land Development
Act. But opening some parts for guests to rent out daily, and in the middle
of the construction, must be considered as operating a hotel business. We
would like to suggest that you apply for a hotel license in order to let
guests stay nightly, weekly or whatever, legally. You may not fully
understand Thai law, but what you are doing is risky - it can be construed
as contravening the Hotel Act,” Vice Governor Somkiet warned.
Christopher Gordon agreed to attend to both issues raised by the Phuket Vice
Governor. However, it remains unclear why the developer did not comply with
the law from the beginning. (PR Log)
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Thai Garden Resort environmental award reflects hotel philosophy, investments
Thai Garden GM Rene Pisters
takes guests out for a morning ride.
From eliminating individual packets of butter to
installing solar panels, the Thai Garden Resort’s award-winning commitment
to environmental conservation is a mix of management philosophy and
financial investment.
The Pattaya hotel recently was awarded the Travelife gold-level award from
British travel association ABTA for a “very high commitment” to sustainable
tourism and the hotel’s encouragement of others to do the same. General
Manager Rene Pisters said winning the certification was a grueling process,
but worth in the end.
“Travelife conducts comprehensive hotel checkups,” Pisters said. “There are
unannounced visits by the Travelife inspectors, who check the energy
invoices, do interviews with the hotel staff and survey the use of chemical
agents at the hotel, to mention only a very small part of the tests.”
Showers and toilets are checked for their water consumption and as the
circumstances require, measures have to be adopted to lower the water
expenditure, he said. Sometimes the measures are as simple as putting
liter-bottles of water inside a toilet’s water tank. In other cases,
water-pressure is lowered to drop consumption.
“But of course it won’t work without some investment,” Pisters admitted. “We
installed solar panels on our roofs and are able to provide the whole resort
with hot water from the solar system. We lowered our gas consumption by 80
percent.”
Water is also heated by the hot air churned out by compressors on the
hotel’s many refrigerators and freezers, something normal households could
do, he said. The resort also collects and filters shower water to its
gardens, lowering water use further.
Then there’s simply the decisions of management: Small, individually packed
portions of butter, marmalade or cosmetics have been banned from breakfast
tables and restrooms due to the copious amount of plastic waste involved.
“We are just one hotel business out of many in Pattaya and we can only
contribute our own share to protect the environment,” Pisters said. “But
imagine what savings potential there is in all of the city’s 703 hotels?”
By utilizing Travelife tools, which ABTA promotes to help hotels and tour
operators monitor and manage their social and environmental impacts, the
Thai Garden Resort encourages guests to get involved in conservation. Towels
and bedding are only changed on demand. An extra key must be used to turn on
power.
“If you are on a day trip, you don’t let the water run in your room all day
long. So, why should the electricity be turned on during that time?” Pisters
asked. “We purchased the best Daikin air conditioners available for our
guests and cooling a room down to the desired temperature requires just a
few minutes.”
Hotel staffers are proud of having won the Travelife recognition and realize
many holidaymakers are looking for “green” hotels. As part of its
membership, Thai Garden Resort must promote the Travelife product on its
brochure.
“Travelers study their travel brochures and check for the hotel category
first. But they also look for other aspects to make up their decision and
environmental aspects are fundamental and a growing issue in this decision
making process,” the general manager said.
(Pattaya Mail)
The new solar panels on the
hotel roof.
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Stateless: The status of the returning UK expatriate
UK nationals approaching the end of a placement abroad
who are planning on a quick and easy house purchase after landing back home
would do well to think again, suggests UK regulated expatriate mortgage
brokers Offshoreonline.org. It is well know that many expatriates leave the
UK to build up capital more quickly and to be able to move up the property
ladder faster than they would have, if they had stayed put. Apart from
retiring earlier, increasing property holdings is one of the most common
reasons given by expatriates for deciding to move abroad to live and work.
Poorly served as it is by mortgage lenders, the expatriate market does at
least feature on some lenders’ radars as a source of business, albeit one
where deposits of 30% and more are demanded for what is often better quality
lending business than exists on the mainland. Rather than stump up such
large deposits, many expatriates decide to delay their house buying until
they return to the UK, on the misguided assumption that they will
automatically qualify for the lower deposit options that exist for most
domestic buyers.
But the position of the returning expatriate is likely to be bleak and
choice even more limited than for an expatriate buyer, especially if they
have been abroad long enough to have dropped off the Electoral Roll, which
will be the case for almost everybody who has lived and worked abroad for
any significant length of time. The reason? Most banks use the UK voting
registry as a core component in their credit scoring. Without a high credit
score, no bank will agree to lend to a client, irrespective of their general
wealth levels, and it is virtually impossible to achieve a high credit score
if you are not a current voter in the UK.
Bizarrely, that can also apply to clients of banks who have held accounts
with their offshore subsidiaries whilst living and working abroad. If you’ve
had an account with one of the big clearing banks abroad, don’t
automatically expect their UK operations to grant you a mortgage is the
message.
Tim Harvey, managing director of Offshoreonline.org comments, “We frequently
meet clients who may have worked in the Far East or Middle East where they
might have held significant sterling or currency savings accounts with one
of the clearing banks’ offshore subsidiaries in Jersey, for example. Their
level of savings can be quite large, so it is not uncommon for a returning
expat to only want to borrow 50% or less of a property’s value, but time and
again they are rejected due to a poor credit score.”
UK Property search consultants Expatfindaproperty.com agrees, Erica Evans
recently found a home in Scotland for a returning client, only to nearly
lose the business as the bank would not lend, despite him having a 90%
deposit. “In the end”, said Evans, “the client bought for cash, as he did
not want to lose his dream home, but we were amazed by how unprepared the
banks were even for their own returning clients.”
According to Offshoreonline.org, there are two main ways around the problem;
either the client has to buy for cash and remortgage six months later once
they have a credit record in the UK, or they bite the bullet and buy as an
expatriate with a 30% deposit, then remortgage to release funds to rebuild
savings once a credit record has been built up in the UK. Neither would seem
to suggest a warm welcome for a willing property buyer who may have a far
larger deposit and more stable income than many of his UK counterparts.
(PR-Log)
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