I recently secured a £400,000 bridging loan for a retired couple whose income came primarily from their pensions, urgently looking for assistance acquiring a property which had recently come on to the market as a residential probate property sale.
Both in their mid-70s, my clients were looking to downsize without leaving the local area where they had built their lives. Naturally, when the smaller property next door became available, my clients were eager for a swift purchase.
Due to the neighbourly relationship between my clients and the seller, there was the opportunity for an amicable sale, provided the purchase was speedy.
Time was therefore imperative when my clients approached me looking to secure a bridging loan of £400,000 to quickly complete their move.
Typically, properties under probate sale are taken off the market very quickly. Further, the home was in a highly desirable area of Middlesex, and so it was crucial the bridging loan was negotiated and completed quickly, just in case the seller decided to place the property on the mainstream market.
Though recent renovations to my client’s original home had significantly increased its value, the timescale placed on the probate purchase property meant the sale of my client’s home would not be completed in time.
Added to these issues, retirement had left my clients with a lack of any other substantive income other than their pensions. The mortgage, therefore, could only be secured against their purchase property.
As time was a crucial factor in this case, my strong relationship with a bespoke lender became more critical. I worked quickly to secure a 70% loan to value (LTV) bridging loan amounting to £400,000 at 0.85% over 12 months structured in a way that facilitated their requirements. I reassured the lender the sale of their larger house next door would act as the exit from the bridging loan, satisfying the lender of any doubts surrounding my client’s affordability.
My clients are delighted with the rate I achieved in the given timescale, and are very much looking forward to moving in next door.