A case study exploring property strategy, tax structuring, and value creation in prime central London

When Mohammed, a 52-year-old Saudi entrepreneur, decided to acquire a London base for his family, he wasn't simply buying a property—he was executing a comprehensive wealth strategy. His acquisition of a 3,500 square foot lateral apartment on one of Mayfair's prime garden squares offers valuable insights for Gulf-based families navigating the complexities of UK residential property investment.

The Strategic Imperative

After successfully exiting his logistics business in Saudi Arabia, Mohammed manages his family's diversified portfolio through a private office in Riyadh. With four children aged between 11 and 18—two considering UK university education within the next few years—London had evolved from an occasional destination to an increasingly relevant long-term base.

The family's 8-10 weeks of annual London visits across summer holidays, half-terms, and business trips created a compelling case for ownership over rental. However, Mohammed approached the acquisition with clear investment discipline: he sought scale, value-add potential, and long-term capital appreciation alongside family utility.

Off-Market Acquisition and Professional Representation

Working through specialist buying agents Obbard, Mohammed secured the Mayfair property off-market at a substantial discount to its previous marketed price. This highlights a crucial distinction often overlooked by international investors: traditional estate agents represent sellers and are incentivized to maximize price, whilst buying agents act exclusively for purchasers.

Hugh Obbard explains the additional advantage: "Within Kensington & Chelsea borough alone, there are over 360 estate agent offices. A buying agent accesses the entire market—including the 'grey market' where significant properties trade agent-to-agent before public marketing."

For Mohammed, operating from Riyadh, professional representation provided more than market access. It delivered crucial due diligence on lease length, service charges, planning restrictions, conservation area implications, and renovation potential—the "cons" that ultimately matter more than obvious attractions of a Mayfair garden square address.

Navigating UK Tax Complexity

The tax implications for overseas investors acquiring UK residential property are substantial and frequently misunderstood. Zeeshan Khilji of Tax Consulting Group outlined the immediate considerations Mohammed faced.

Those rules changed a few years ago, yet many investors remain unaware. UK residential property now attracts 40% IHT regardless of ownership structure or domicile status."

For Mohammed's £15 million acquisition, this could represent a potential £6 million liability—a figure that demands sophisticated succession planning from day one. Additionally, any future disposal will trigger Capital Gains Tax at 24% for residential property, calculated on the gain from acquisition.

Enhancement expenditure could provide some relief. Mohammed can offset eligible enhancement costs against future CGT calculations—but only with meticulous record-keeping. Building control certificates, detailed invoices, before-and-after plans, and comprehensive cost documentation must be maintained.

Value Creation Through Strategic Renovation

Mohammed didn't simply purchase the property—he implemented a comprehensive transformation program including full structural reconfiguration, complete systems upgrades, and hotel-grade luxury finishes.

The property was sourced with clear value-add potential already identified. Obespoke, the dedicated renovation and restoration arm of Obbard, provided Mohammed with detailed cost planning, timeline projections, and post-renovation valuation analysis before purchase, enabling a fully informed investment decision.

Portfolio Development and Multigenerational Planning

Mohammed views this acquisition as potentially the foundation of a broader UK property portfolio. However, the structuring conversation becomes increasingly sophisticated as portfolios scale—not necessarily due to value thresholds, but because of evolving family circumstances.

With two children potentially establishing UK residency through university education, the tax planning must account for a new generation's future domicile status. Recent changes to UK tax rules mean long-term residents can no longer claim remittance basis relief, bringing worldwide assets into the UK tax net.

Coordinated Professional Expertise

Perhaps the most valuable lesson from Mohammed's acquisition is the importance of coordinated professional support. With family based in Riyadh but property in London requiring active management, fragmented advice creates complexity and risk.

The optimal approach requires an overarching strategy that brings together buying agents, architects, interior designers, project managers, experienced tax advisors, private wealth managers, and conveyancing solicitors who work collaboratively rather than in silos. When these professionals communicate with "one voice" focused on client outcomes, international property ownership becomes manageable rather than burdensome.

For Gulf families considering prime London acquisitions, Mohammed's experience demonstrates that success requires more than capital—it demands specialist expertise, patient execution, and integrated planning from acquisition through renovation to long-term succession.