Our clients were well into retirement and wished to downsize their central London home to a lower value house in the Surrey countryside, to be closer to their children and grandchildren.

Loan Type:  Bridging Finance / Equity Release

Property Value: £7.3m

Loan Size: £2.8m

Loan to Value: 38.3%

The Situation

Our clients owned a property that was worth approximately £5m in Notting Hill. Typically for their generation, the majority of their wealth was invested in their main home. Whilst they knew they wanted to relocate to Surrey to be closer to family, the thought of having to sell and buy at the same time and the associated stress was putting them off from making the move.

The property they were looking to buy was on the market for £ 2.75m, and wanted to complete refurbishment works before they moved in.

The Challenge

Whilst our clients had equity wealth in their property, outside of this there wasn’t much more than some private pensions and savings. Their income would have only been able to support a very small mortgage. Their options were therefore to buy and sell simultaneously and endure the upheaval whilst the refurbishment work was carried out, including a new kitchen and bathroom, or to move into rented accommodation for six months. Neither option was appealing to a couple in their late sixties.

The Outcome

We were able to source a lender to secure a loan across both properties, enabling the clients to buy their new property and remain in London for the course of the refurb. The loan was enough to buy the new property and cover the costs of Stamp Duty, legal costs and the building work.

Because they didn’t have to sell their property and could complete the purchase extremely quickly, they were treated as ‘cash’ buyers and were able to secure the new property at £2.3m, a saving of £450k from the list price.

Once the purchase was complete and the refurbishment works were underway, the London property went on the market. The sale completed five months later, which coincided with the completion of the refurbishment, leaving our clients to repay the loan and move into their newly refurbished, fully finished house.