Downsizing - bridging finance when retired

S

Saudi

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Hi

Just wondering if someone knows whether a retired couple would be able to take out bridging finance to cover the time between purchasing a new house and selling their own? On initial enquiry it seems that it isn't possible but there must be a optimum system/method for downsizing.

My parents are considering selling a house in Dublin and purchasing somewhere in the countryside.

Any and all opinions appreciated.

Thanks

Saudi
 
I think things depend on how the market is going and whether the parties are in a position to service a potentially long term debt - e.g. bridging finance. Even if they could organise it , are they comfortable with the idea that their own house may not sell for a while?

In reality, the optimum way to deal with the situation is to sell their current house, pocket the money, rent somewhere ( not easy for short term) and as soon as purchase new place. There is a risk that prices will shoot up ( a trifle unlikely!) and there is the inconvenience of moving twice. It is however preferable to possibly being stuck with two properties.

mf
 
www.seniorsmoney.ie - could be an option as there are no penalties for early repayment etc

However the amount approved will be dependent on their age and the value of the house in Dublin.
 
Hi

Thanks for the responses. Clubman unfortunately the children aren't in a position to help them out now. They are in their early 60s. Selling and then purchasing is an option creates hassles (eg two moves) but perhaps the monthly rent might be less than bridging loan repayments.

On a separate but related note does anyone think there will be downsizing stamp duty relief in the near future (2/3 years). I think it would make a lot of sense by freeing up family homes (particularly family homes within an easy commute of Dublin).

S
 
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