UK's Tier 1 Entreprenural Visa Qualifications (Starting real estate mgnt co.)

Hi folks,

Ok!...I've found that the Tier 1 Entreprenural Visa is probably the best route for me, and there's a ton of info on the subject. Wheather or not it's accurate, is anyone's guess? That's why I'm here.

So far this is what I've found for eligibility for Tier 1 Entreprenural status;

In order to get an Entrepreneur Visa, you will be assessed based on your
1.)English Language skills and 2.) on the amount of money you have.
 
In order to meet 1.) the criteria for the English Language assessment you can qualify through one of the following ways:
 
A.  Being from a country where English is the main language
 
B.  You have successfully completed a Master’s Degree course which was taught in English
 
C.  You have passed an English Language test that is equal to level C1 of the Council of Europe’s Common European Framework for Language Learning
 

Now, part 1 I know I'll nail with no sweat.  However, Part 2 is where I have a question....


In order to meet 2.) the criteria for the amount of money you have, you will be assessed on a Points Based System, from which you must achieve 75 points. The points are rewarded for the following:
 Having access to £200,000 = 25 points
 The sum of £200,000 is held in a regulated bank account = 25 points
 The funds are disposable in the UK = 25 points

Part 2 I totally understand.  But, instead of opening a UK bank account with accessable, liquid funds, could I purchase (w/a mortgage) commercial/investment real estate 1st, while I'm still a US citizen, who's still living/working in the US?

So...Could I buy my UK property 1st, then apply for the Tier 1, while I'm still in the States? 

OR...Move to the UK 1st, apply for Tier 1 status, then buy the property?

Thanks for everyone's help!

http://www.ukba.homeoffice.gov.uk/pointscalculator

If you don't have the money fully available in a regulated UK bank account then it wont award you those 50 points and you fail the criteria.

So no, you can't use a mortgage, you definitely can't move to the UK and then apply for tier 1.

You need to have £200K liquid and fully available to invest in an already existing business in the UK, or to start one up.

Cheesebiscuit is right. The main requirement of the entrepreneur visa is that it is for individuals who have a large amount of liquid cash available.

But, instead of opening a UK bank account with accessable, liquid funds, could I purchase (w/a mortgage) commercial/investment real estate 1st, while I'm still a US citizen, who's still living/working in the US?

While I think cheesebiscuit and Geeta are right, I also think you'd be better off contacting a UK lawyer with experience in entrepreneurial immigration cases.  There's enough vagueness and room for interpretation in the guidance that if I were in your shoes I'd want a lawyer to look over what I proposed to do and give me some idea of whether or not it'd work.

Even if what you want to do won't work, a lawyer or immigration adviser might have other ideas that will work.

Wow!  That was quick!  Thanks guys! Yeah, I'm gonna need the help of a solicitor/lawyer for this visa route.

I've visited NE England 2x-3x/yr, for the last 4yrs, and I find it very interesting that I haven't found anything on the books that says, a non-UK individual, can't purchase/own UK real estate! 

Thanks Again!

"Brooklynite By Birth, Geordie By Choice!"

There's no requirement to be a UK citizen before you can own property.  Why would there be? Usually the tougher requirement for a non-citizen is getting a mortgage.

But as you have a UK girlfriend, why wouldn't you pursue a spousal visa as a way to move to the UK?

There's no requirement to be a UK citizen before you can own property.  Why would there be? Usually the tougher requirement for a non-citizen is getting a mortgage.

Most of the mortgage companies my wife (UK) and I (US) dealt with wouldn't consider giving us a joint mortgage until I was a permanent resident of the UK.  I don't know what they thought I might do - maybe get them to give me the money to buy a house and then abscond to the US with the house, laughing maniacally all the way.   

Really? Even if I coughed up a 30%-40% downpayment on a piece of commercial property (occupied with paying tennants), the financial institutions would still turn their backs on me?!? Damn that's cold!

Cold but true. We had more than 80% of the purchase price in cash and because I was still on FLR no one would offer us a mortgage -- not even the bank I've personally been banking with since 2006.

I would guess it's a combination of (at least) two things:

- international credit boundaries. You could "buy a house and abscond with it to the US", as camoscato posted above. (Not literally the house, but certainly the loan. If they have no way to reach you in the US there isn't much they could do to chase you down for the money if you stop paying.)

- money laundering. If it were easy to get a mortgage on a property internationally, I would guess all sorts of people would just pour their illegal money into foreign mortgages. I'd be surprised if there weren't laws about who can obtain loans (of any size, but certainly large ones) when not a permanent resident/citizen.

international credit boundaries. You could "buy a house and abscond with it to the US", as camoscato posted above. (Not literally the house, but certainly the loan. If they have no way to reach you in the US there isn't much they could do to chase you down for the money if you stop paying.)

That's true, but if I left the country they could just repossess the house.  I can't figure out a scenario in which a non-permanent resident could somehow con a UK bank based solely on their non-permanent resident status.  (Not saying there's not one; just that I'm not criminally-minded enough to think of it.)

And if it was a matter of not wanting to risk the possibility that someone would get a loan and then leave the country, I'd wonder how often that happens that it would make more financial sense for the bank to turn away business from every non-permanent resident to avoid the possibility that a few might leave them holding the bag.

money laundering. If it were easy to get a mortgage on a property internationally, I would guess all sorts of people would just pour their illegal money into foreign mortgages. I'd be surprised if there weren't laws about who can obtain loans (of any size, but certainly large ones) when not a permanent resident/citizen.

I don't know.  If you Google "non-resident mortgage uk" there seem to be a lot of banks willing to give mortgages to people who aren't permanent residents of the UK.

p.s. Not trying to argue, just curious and trying to think it through.

I would guess it's a combination of (at least) two things:

- international credit boundaries. You could "buy a house and abscond with it to the US", as camoscato posted above. (Not literally the house, but certainly the loan. If they have no way to reach you in the US there isn't much they could do to chase you down for the money if you stop paying.)

- money laundering. If it were easy to get a mortgage on a property internationally, I would guess all sorts of people would just pour their illegal money into foreign mortgages. I'd be surprised if there weren't laws about who can obtain loans (of any size, but certainly large ones) when not a permanent resident/citizen.

It's actually discrimination in the US to deny someone a mortgage based upon their legal residency.

http://www.dhs.gov/files/statistics/publications/us-legal-permanent-residents-2011.shtm

A legal permanent resident (LPR) or “green card” recipient is defined by immigration law as a person who has been granted lawful permanent residence in the United States. Permanent resident status confers certain rights and responsibilities. For example, LPRs may live and work permanently anywhere in the United States, own property, and attend public schools, colleges, and universities. They may also join certain branches of the Armed Force and apply to become U.S. citizens if they meet certain eligibility requirements.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ref/sfhp2-07

When the applicant has indicated that they are other than a US citizen on the URLA, the lender must determine residency status.

Permanent Resident Aliens are eligible for an FHA-insured mortgage under the same terms as US citizens.

Non-Permanent Resident Aliens are eligible for FHA-insured mortgages provided the property will be the borrower?s principal residence, they have a valid social security number, and the borrower is eligible to work in the US.

http://www.civilrights.org/fairhousing/laws/housing-discrimination.html

Housing discrimination is a pervasive problem nationwide. It is also severely under-reported. The U.S. Department of Housing and Urban Development (HUD) estimates that more than two million instances of housing discrimination occur each year, but fewer than one percent are reported.

Many people are unaware that they have been victims of housing discrimination. A 2002 study by HUD suggests that many renters and homebuyers do not fully understand which activities are illegal under the Fair Housing Act.

If you think your rights to fair housing have been violated, help is available. Housing discrimination complaints can be filed by phone or in writing, with HUD and/or with private fair housing enforcement agencies located across the country.

The Fair Housing Act prohibits discrimination in housing on the basis of:

    Race or color
    National origin
    Religion
    Sex
    Familial status (families with children)
    Disability

Under the Fair Housing Act, the following activities are illegal:

    Refuse to rent or sell housing
    Refuse to negotiate for housing
    Make housing unavailable
    Set different terms, conditions, or privileges for sale or rental
    Provide different housing services or facilities
    Falsely deny that housing is available for inspection, sale or rental
    For profit, persuade owners to sell or rent (blockbusting)
    Deny any access to or membership in a facility or service (such as a multiple listing service) related to the sale of housing
    Refuse to make reasonable accommodations in rules or services if necessary for a disabled person to use the housing
    Refuse to allow a disabled person to make reasonable accommodations to his/her dwelling
    Threaten or interfere with anyone making a fair housing complaint
    Refuse to provide municipal services, property insurance or hazard insurance for dwellings, or providing such services or insurance differently

I think equestrianerd has a point.  The UK, from what I've heard, has very strict anti-money-laundering laws.  This is why it can be so difficult for expats to get a bank account.  But I have a feeling that, like bank accounts, everyone's mileage is going to vary pretty remarkably.  I've heard of people who get mortgages--joint ones, probably, but still--whilst on FLR, and others who go from bank to bank with no success. 

I think equestrianerd has a point.  The UK, from what I've heard, has very strict anti-money-laundering laws.  This is why it can be so difficult for expats to get a bank account.  But I have a feeling that, like bank accounts, everyone's mileage is going to vary pretty remarkably.  I've heard of people who get mortgages--joint ones, probably, but still--whilst on FLR, and others who go from bank to bank with no success.  

I think you are right and I think that's part of the perception problem with migrants to the UK.  

As you say, people's mileage varies wildly when it comes to getting bank accounts and mortgages.  Just as their mileage seems to vary with SS offices and housing authorities understanding what "no recourse to public funds" means.

From the outside looking in, I think it would be beneficial for the UK to clarify just what exactly migrants can and cannot do.  And by clarify, I mean clarify that to government agencies as well as to the private sector.  
  

I just obtained a joint mortgage with my UKC partner 2-3 months ago.  It was, not to put too fine a point on it, ridiculously difficult.  I'm on a work visa with intent to have a civil partnership ceremony in about 3 months (and I'm lucky enough to have a very good job in a stable field), and the banks wouldn't even look at us without 15% minimum and a ridiculously high interest rate.  We wound up purchasing now with an intent to refinance in 2 years, but had to liquidate everything to get our down payment together, and we're paying about 150% of what we should be paying.

The real estate market is not kind to non-UK citizens who need mortgages.  Whether it's fair or not is for another thread - but be forewarned. 

Money laundering regulations have little to do with this - compliance in this case will require a utility bill / bank statement and passport presented in person to your counsel.

All of that said, I own my beautiful, Scottish, Georgian flat and couldn't be happier!