100% development funding secured in 6 weeks for a first-time UK developer with overseas income and Saudi residency.
GCC-based investor (Saudi national, Saudi resident)
The Client
A Saudi-based investor looking to enter the UK property market through a ground-up development. First-time UK developer with income and residency in Saudi Arabia, and no prior UK credit or investment track record.
The Opportunity
The client identified a plot in outer London with planning permission already granted for a mixed-use scheme: 9 residential flats above a fully furnished commercial unit. The land was purchased outright for £1.5 million. The total development cost to deliver the scheme was £2 million, with the client’s objective to finance this entirely through Sharia-compliant funding without committing additional personal capital.
The Challenge
The case carried several layers of complexity that sit outside standard UK development lending.
- First-time UK developer profile with no established UK track record or credit history
- Overseas income and residency in Saudi Arabia require enhanced verification
- Requirement for Sharia-compliant finance significantly narrowed the available lender pool
- 100% development funding requested, with no additional deposit beyond land ownership
- Semi-commercial element added exit complexity and valuation risk for lenders
- Need to identify and engage a credible UK developer and approved contractors to satisfy lender requirements
Rainstone Money’s Approach
Rainstone structured the case around the client’s existing land ownership as equity, removing the need for a cash deposit on the development loan. A specialist Sharia-compliant lender with an appetite for complex international borrower profiles was identified and engaged.
To satisfy lender risk requirements, Rainstone facilitated introductions to experienced UK developers and approved contractors, establishing credibility around delivery. A staged drawdown structure was agreed, with three payments released across the 18-month term following independent surveyor inspections at each milestone.
A clear exit was structured through the sale of residential units on completion, with the client retaining the commercial unit and a portion of the flats for long-term income.
The Outcome
- The Marylebone property was secured within the required 3-week timeframe with a £1.125 million client deposit
- A Sharia-compliant bridging facility was arranged to meet the client’s religious finance requirements
- 75% LTV was achieved at £3.375 million, against an initial expectation of 50% LTV, preserving liquidity for future investments
- A value-add strategy was established, converting a single listed asset into 12 income-generating rental units
- A clear lender exit was structured via a 12-month bridging facility, with refinancing into a long-term HMO solution on completion
- The transaction laid the foundation for future UK portfolio growth through capital efficiency and a planned refinance strategy
“Structuring the land as equity was the turning point. It unlocked 100% development funding without the client needing to commit further capital, and gave the lender the security they needed to proceed with a first-time UK developer.”
International Finance Experts
For expert advice on foreign national investments and mortgages, please contact Rahul Modasia on
07395 043003 or via email at rahul@rainstonemoney.co.uk.
