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  • Mortgages & Finance

    Finance while travelling-avoiding PGs/wet ink

    Is it possible for nonresidents to secure finance in LTD structures without having personal guarantees witnessed and signed?

    After 10 years of procrastinating I'm finally going to spend some of my rental income and travel Asia, however this presents a problem when trying to maintain growth as the funding partner of JV SPV for flips – as:

    • anyone with 25%+ shareholding is required to have a personal guarantee witnessed and signed
    • power of attorney not accepted by some lenders, preventing someone I authorise to fulfil this role
    • even if I am a creditor of the company, I will be brought back into the picture when answering the 'source of funds' question on the finance application

    unless I want to travel back to the UK to have personal guarantees witnessed and signed, I need to find an authorised person abroad to do this and then send wet ink copies back which could hold things up by weeks or months when its inevitably lost in the post.

    I'll be gone for longer than 6 months hence non-resident.

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    If the issue is not signing the personal guarantees but having them witnessed. The best bet would be to contact a Solicitor who would work with you to do this, perhaps talking to you on Skype to confirm the PG's when you are abroad and witnessing a signature this way.

    You can get LTD Company BTL with No Personal Guarantees what-so-ever though they are limited, higher rates and require large deposits to secure Low LTV's (giving lender security).

    I'd go with option 1. Explain your predicament and get them to consent to do it at distance.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________


    Appoint a power of attorney

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    The only solution I can see is a notary public or equivalent in the country you are in witnessing your signature, via Skype to a UK solicitor (not the conveyancer). You would then need to courier the original to your solicitor in the UK. Yes, it's crazy that we are still relying on such antiquated methods in 2019!

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    Thank you all for your feedback; I have proposed these workarounds to the brokers I'm currently engaged with as the issue so far is not the flexibility of solicitors but of lenders (some of whom have shot down power of attorney). 
    I had a bit of a breakthrough on this yesterday which would potentially do away with these requirements, insofar as using small bridging companies without as much bureaucracy who are willing and able to be more flexible. 

    If anyone has recommendations for anyone in this space I'd be more than happy to follow up with them.

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