The Intermediary – August 2025 - Flipbook - Page 57
SPECIALIST FINANCE
Opinion
The wealthy are
investing abroad
T
he Government’s first
year in the driving
seat has brought a
wave of change for the
UK’s high-net-worth
(HNW) individuals.
With sweeping tax reforms and
growing economic uncertainty, many
wealthy individuals are turning their
aention, and their capital, to overseas
property markets.
In 2024, around 7,500 millionaires
le the UK, according to the Henley
Private Wealth Migration Report. A
worrying statistic in itself, yet so far in
2025 that figure has already surged to
16,500, the largest outflow on record.
What is causing this trend? The
Government’s overhaul of the nondomicile tax regime, alongside
increases in Capital Gains and
Inheritance Taxes, has made domestic
investment less appealing. For many
HNW individuals, the UK is no longer
the most efficient place to grow or
protect their wealth.
Positive prospects
At the same time, the weakening of
the British pound in 2024 and early
2025 has created new opportunities
abroad. Investors converting GBP
into USD or EUR are finding they
can secure properties at a relative
discount, enhancing their potential
returns. This currency advantage,
combined with more favourable tax
regimes overseas, is driving a surge in
international property investment.
This isn’t just about tax efficiency.
Investing abroad allows HNW
property investors to diversify their
portfolios geographically, reducing
exposure to domestic political and
economic volatility. Many are
targeting stable, high-growth markets
with strong rental demand such as
Spain, Italy and Switzerland. These
regions offer not only aractive yields
but also long-term capital growth.
Technology has also played a role,
as advances in remote property
management and digital platforms
have made it easier than ever to
oversee international assets. What
was once a logistical challenge is
now a streamlined process, enabling
investors to manage properties across
borders with greater ease.
We’re seeing this trend at Together.
Recently, we partnered with Enness
to deliver a bridging loan of £4m for
a client renovating a second home
in Ibiza.
The applicant used their UK
property portfolio as security, and
the funds were released quickly to
complete the works ahead of the
summer season. With tourist demand
growing, speed was essential, and
a 12-month regulated bridging loan
proved to be the ideal solution.
On top of this, the customer was
also able to use the funds to complete
refurbishment to their home in
London, and also for investment into
their business. They were able to exit
through a refinance of this property.
This is where brokers come in.
HNW customers investing abroad
oen need to raise capital against
their UK assets, and bridging loans
are particularly well-suited to this
need. They offer speed, flexibility,
and tailored structuring, allowing
investors to act quickly on overseas
opportunities, fund renovations, or
meet tight deadlines.
DAN NARWAL
is regional account
manager at Together
Know the options
To truly capitalise on this
trend, brokers must build their
understanding of international
investment strategies and the
financing options available. This
includes knowing the types of loans
these individuals can access – from
equity release and portfolio-backed
lending to bespoke solutions offered by
private banks and specialist lenders.
Lenders like Together are wellequipped to support this market.
We assess each case individually
and move at pace, which is essential
when working on this type of client.
Our ability to lend against complex
portfolios and deliver tailored
solutions makes us a valuable partner
for brokers serving this segment.
In a constantly changing financial
landscape, staying informed is
key. Brokers who understand the
motivations behind international
investment, how cross-border finance
works, and the needs of HNW
investors, will be best placed to serve
this growing customer base. ●
Foreign appeal: Investors are finding they can secure properties abroad at a relative discount
August 2025 | The Intermediary
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