Yes, overseas developers can get UK development finance
Non-UK residents successfully develop property in the UK — from individual overseas investors building single houses to international development companies running multi-unit schemes. Development finance is available, but the process has additional requirements compared to UK-resident borrowers.
What lenders require from overseas developers
UK-registered SPV
All development finance must be through a UK-registered limited company (SPV). This is standard for UK developers too, but it's particularly important for overseas borrowers because it gives the lender a UK-jurisdictional entity to lend to. The SPV must be incorporated at Companies House with at least one director (who can be non-UK resident).
Enhanced due diligence
Lenders conduct enhanced KYC (Know Your Customer) and AML (Anti-Money Laundering) checks for non-UK resident borrowers. This includes: certified copies of passports and proof of address (notarised and apostilled in the country of residence), source of funds/wealth documentation, and potentially enhanced background checks. This process takes longer than standard KYC — allow 2–4 weeks.
UK-based representation
Some lenders require a UK-resident director on the SPV, or a UK-based project manager with authority to make decisions. This gives the lender a local point of contact and provides oversight of the project. If you don't have a UK-based partner, professional director services are available.
Personal guarantees
Personal guarantees from overseas directors can be harder for lenders to enforce. Some lenders require additional security — such as a cash deposit held in a UK bank account, or a charge over UK-based assets — to mitigate this risk.
Typical terms for overseas developers
- Interest rates: 9–14% (1–3% higher than equivalent UK-resident deals)
- LTC: 65–80% (slightly more conservative)
- LTGDV: 55–65%
- Equity requirement: 25–40% (higher than UK-resident developers)
- Number of lenders available: Fewer than for UK residents — approximately 15–25 of the 50+ lenders on platforms like Assesr
Tax considerations
- SDLT surcharge: Non-UK residents pay an additional 2% SDLT surcharge on residential property purchases. This is on top of any other surcharges (e.g., the 3% company surcharge). Does not apply to non-residential land.
- Corporation Tax: The UK SPV pays UK Corporation Tax (25%) on development profits, regardless of the directors' residence.
- Non-Resident CGT: If the development is structured as a capital transaction rather than trading, non-resident CGT may apply. Take specialist tax advice.
- Double taxation treaties: Check whether a treaty exists between the UK and your country of residence to avoid double taxation on profits.
How to apply
Submit your deal on Assesr with your overseas status clearly indicated. The AI matches to lenders who specifically accept non-UK resident borrowers and structures the credit paper to address the additional considerations. Having a professional credit paper that clearly presents the deal, the borrower's background, and the project management structure significantly improves your chances with UK lenders.