Case Study: Bridging Finance, Better value than Equity Release
Updated: Dec 8, 2021
A client approached us via her daughter regarding the prospect of using Bridging Finance to assist in a chain break as opposed to equity release.
Our client (mum) is aged 86 and would like to sell her £1,750,000 5 bedroom house with 2 acres of land, to live closer to her daughter by purchasing a £400,000 bungalow, outright.
The chain took 13-weeks before it broke and the sudden urgency for our client to move had her considering accepting offers from £1,300,000, just to enable the move.
An exasperated daughter spoke to us and discovered mum was eligible for a bridge with Masthaven Bank. The rate of interest was 0.43%PM which is 5.16% pa. This is 1.44% cheaper per annum than the equity release option, most elderly clients consider.
A bridging loan at 5.16%, dual legal representation, free-valuation and a dedicated underwriter for peace of mind.
The client need only pay their legal processing fee to the lender solicitor, and we moved toward completion, taking the stress and urgency out of the clients sale negotiations. Thanks to the bridge, our client was able to reject the £1.3M offer and is holding out for the right price.
OUTCOME: Bridging Finance is often considered “too expensive” by financial advisers, when in reality, our go-to products are not always the right tool for the occasion.