Bridging loan to do-up and sell, and downsize

Area
Greater Manchester
Capital Raised
£195K

This is exactly the sort of situation where a bridging loan can be a really straightforward finance option that creates possibilities, when otherwise you’d be stuck in a housing trap or facing a very disruptive moving process.

The Scenario

Our client was recently widowed and wanted to sell up and move to a comfortable retirement flat from the four-bed house that had been the family home for 20 years.

His £350K house was mortgage-free, and the £190K apartment would be costing less than half of what the family home should realise.

But he didn’t have any spare cash to pay for the decorative work that was needed to get the property spruced up for sale. Or for legal fees and stamp duty.

Meanwhile, the right flat in the right retirement complex (that’s close to friends and family) doesn’t come up very often.

But he’d found the flat that would suit him, and he didn’t want to have to wait until he found a buyer for his house. He wanted to buy and get in, and take his time about moving what he wanted from the old home.

The Solution

He needed to raise the full purchase price of the flat, plus legal costs and charges, plus the cost of the redecoration work (estimated at about £1K).

Securing a bridging loan against both properties gave us a combined LTV of 37%, which allowed us to access the amount of borrowing he needed, at the most affordable rate – 0.48%.

With one lender and one product for the two loans, the online valuations were free for both properties (a saving of about £700), and using joint legal representation with the bank kept his legal costs below £1,400.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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