The client's son and daughter-in-law were looking to purchase a large detached house in Surrey for £1.905 million in Autumn 2025. Whilst they had the funds available to purchase the property, they needed additional capital of £150,000 to carry out some renovation work on the house as well as cover some other fees and expenses.
The plan was that Dad would move from Cardiff to live in the Surrey home, rent-free, for his retirement. In return, he agreed to secure the bridging facility against his Cardiff house, which had just over £27000 mortgage outstanding.
The bridge would redeem his existing mortgage, leaving £150,000 for his son and daughter-in-law's aforementioned requirements. The exit from the bridge was sale of the client's home, once he'd painted and decorated the property to maximise it's sale value. The only caveat was he needed to continue living in his Cardiff property until it was sold. Only then would he move to Surrey.
Several lenders we spoke to were fine with the overall scenario, but weren't willing to let Dad remain in the Cardiff security property after drawdown of the loan facility.
Nevertheless, we managed to source a very competitive bridging loan from a mainstream short-term lender. And crucially, Dad could continue living in Cardiff until the house was sold in early 2025
Case Study 2
Case Study 1
