Area: Shoreham By Sea
Loan Amount: £365k
We were approached by an existing client who was looking to refer their parents, who were in the early stages of planning for their retirement. They were looking to downsize the long-term family home in Brighton and move to the quieter town of Shoreham by Sea a few miles to the west of the coastal city.
The parents had found a house for sale in a small bay-side area they had always been fond of and were aware that these properties were rare in coming to the market. Therefore they wanted to secure the property as quickly as possible.
Following a fact find with one of our Specialist Lending Advisers we were able to arrange a very straightforward and uncomplicated regulated bridging loan. As they had no debts and had paid off their mortgage many years previous, we ascertained with the valuation of the family home that they would be left with just over £62,000 in equity and in the bank following its sale.
However, as the property was yet to sell they needed to borrow the full cost of the property in Shoreham.
As the property market in Brighton remained very buoyant, and considering the financial situation of the couple, the lender we sourced was very confident that they would be able to provide an exit (repay) to the bridging loan by selling the Brighton property within 12 months. In order to acquire the loan amount required we secured the lending against both the property they were buying and the property they were selling, and though securing against both properties would normally be seen to increase risk factor, the likelihood of the Brighton property selling within a year reduced the risk levels significantly. The lender we sourced was also willing to waive the fee on the valuation of the new property, costs were kept to a minimum.
The purchase proceeded and the Brighton property was sold within a month of going to market and thereby providing the clients with the necessary funds to exit the loan.
To discuss your individual situation and find out how we can help with your specialist finance needs, call our Specialist Lending Department on 01249 474 956.