Bridge loan for retirement property purchase with a pension payout as exit

An assured lump-sum pension payout can be an effective exit on bridge finance secured against the value of a property.

The Scenario

Our client is a UK resident working in Switzerland for a major international food conglomerate. He’s looking to buy an investment property in the Home Counties, with a view to possibly living in it in when he retires.

He and his wife want to start looking for properties in the region of £600K. They have £300K to put down, and were looking for a further £300K in finance.

The Solution

Bridging finance could be secured against the value of the future property, but we needed an exit.

The solution was the 25% tax-free pension pot our client is going to be able to access in six months’ time.

We sourced a lender who is happy to accept a pension lump sum payout as exit, at market-leading rates, and our client and his wife can now begin their property search in earnest.