Short term secured loan to trade up

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kalooki

Registered User
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I am considering moving house, i.e. selling and buying. No mortgage at the moment, and none planned long-term.

I am expecting to be able to fund it through an investment disposal and / or bonus payment. However neither of these are guaranteed in the timescale needed.

Hence, I am looking at options for a short-term (2-3 year) loan secured against a book of investment property.

E.g.
Selling a house for 600k
Buying a house for 900k
Need 350k

Expecting to get the 350k from a share sale and / or a bonus payment, that has a small chance of not materialising in the required timeframe.

So want to have a "backstop" option of borrowing the 350k against an investment property portfolio worth 900k that is currently generating 60k per annum in rent, with a view to clearing the loan in 2-5 years (likely 2).

I've looked at Dilosk, Finance Ireland, etc... but I'm not really familiar with these sort of transactions. Anyone any recommendations?
 
kalooki said:
So want to have a "backstop" option of borrowing the 350k against an investment property portfolio worth 900k that is currently generating 60k per annum in rent, with a view to clearing the loan in 2-5 years (likely 2).
Click to expand...
I doubt that a lender will lend against "an investment property portfolio" whatever about maybe offering a loan secured on a specific property. Have you tried this? Or, more simply, a mortgage on the new PPR. Whether or not these options are realistic probably depends on your overall financial situation, in particular your existing indebtedness and your income.
 
Sorry should have clarified. No debt at all, personal or otherwise.

Yes, I've considered a loan secured on a specific property, but it would have to be >1 as the portfolio is (essentially) 3 x 300k properties.
I have also considered a PPR mortgage, but this is not suitable.
 
kalooki said:
I have also considered a PPR mortgage, but this is not suitable.
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I don't understand. Why not? It would seem like the obvious option in these circumstances.

Alternatively sell one of the investment properties and take a small mortgage of c. €50K secured on the PPR and pay it off over the 2-5 years if necessary?
 
A few points.

You say a mortgage on your home is not suitable. Is that because of the 20 year nature of mortgages? If you can get a mortgage, get one and pay it off over whatever time frame you require. If you go down this route, get a cash back mortgage with a short term fixed rate.

Have you a specific property in mind to buy for €900k? Is your own home sale agreed so you have the €600k.

You probably need to be clearer about the actual facts of the case so that we are not all guessing.
 
Hello,

I think you'll struggle to get the funding, unless you look at a non Bank lender. Even then, few will want to advance to a non-corporate borrower, they'll want the properties ring fenced within a limited company.

If a traditional Homeloan isn't an option, then you've probably also found that Banks aren't interested in essentially providing an equity release on your property portfolio.

Dilosk may be an option for you, I'm not sure, though.
 
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