Bridging Finance Requirement

Hi,

A good friend has identified a home she wishes to purchase. She has admired this property for a long time and has heart set on it. Downsizing scenario as her children have "flown the nest". She will sell existing home, which is worth c. €100,000 more than the smaller property she wishes to buy. Problem is... how to raise funding of c. €200,000 over a term of maximum 6-12 months?? Pending sale of her existing PDH. Any suggestions out there? I know the Banks wont look at Bridging loans.

Thank you all.

Depending on her circumstances, an equity release on existing property might work? Use funds to buy new house, and then pay off total when she sells.

Pepper is the most likely lender to do such a deal.

The alternative is to put her house on the market and ask for a quick sale. It's risky as she would need to be sure of getting the other house first.

What about any of her kids or other relatives? Could they buy the house with an ordinary mortgage and then sell it to her when her own is sold?

Brendan

I would suggest that your pal simply puts in an offer for the home she has identified that is subject to the sale of her current home. That type of arrangement is not at all uncommon in the current market where bridging finance is unavailable.

Incidentally, it would do your friend no harm at all to ask the vendor's estate agent to value her own home at the same time as she puts in her offer and to strongly hint that the agent will be engaged to sell her current home if and when her offer is accepted.

Estate agents can be very amenable to brokering a deal when there is the prospect of extra commission in the air!

Some great suggestions. Thanks folks.

Sarenco said:

Incidentally, it would do your friend no harm at all to ask the vendor's estate agent to value her own home at the same time as she puts in her offer and to strongly hint that the agent will be engaged to sell her current home if and when her offer is accepted

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Great idea. Go one further and ask the estate agent to sell your house for you.

Brendan

Incidentally, although no help to your friend, AIB have been rumoured for a few months to be getting ready to get back into the bridging finance area specifically for down sizing market. There's definitely a need for it.

We're looking to buy at the moment and were going to bid on a house we liked, estate agent said he couldn't accept a bid without our own house having been sold or at the least sale agreed. Seems to be a lot of cash buyers out there at the moment.

dereko1969 said:

We're looking to buy at the moment and were going to bid on a house we liked, estate agent said he couldn't accept a bid without our own house having been sold or at the least sale agreed. Seems to be a lot of cash buyers out there at the moment.

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Could be circumstances of sellers. I sold recently, and needed a quick close as we wanted to buy again so I instructed agent that I couldn't accept bids dependent on another sale.

There's certainly a bit of that, EA was implying the sale price would determine the houses that the vendors would be looking at, but it seemed to me to indicate they wanted to close quickly and then drag out the actual move until they had secured their own house. Friends in similar situation also heard lots of vendors looking for cash buyers and taking lower bids to ensure quick sale.