Secured loan/morgage for over 70s

Bevill

We wish to "buy" our daughters flat so she can be a cash buyer for a house. We have two unmortgaged properties of our own. Is there anyone who might give us over 70s with good income a short term, interest only mortgage to be repaid as soon as we can sell the flat?
Bevill

kingstreet

You're looking for a bridging loan.

Whether such an animal is available to over 70s, I can't say.

GMS

Bridging loan is the easiest option but there needs to be a definitive exit strategy.

What are the values of the properties? Do you live in either? How much do you need to raise and what would you expect the flat to sell for?

Bevill

Thaks for quick reply. We live in one property - value over 500,000 and rent out other value 250,000. Daughters flat value 240 -250K. Doesn't a bridging loans apply to continue to pay an exisiting mortage while taking on another one? My daughter doesn't want to get into that - especially in present climate when resale might take some time.

kidmugsy

Do I understand: you'd buy your daughter's flat for, say, £249,999 using a bridging loan secured by charges on one or both of your houses. Then you'd sell the daughter's house.

Why not sell your second property and with the money buy your daughter's property and then let that, or sell it, as you prefer? Presumably you have good reason to reject that idea?

Bevill

We don't want to sell our second home as we have good tenants and we'd still be in the waiting for a sale before she could offer on the house she wants. The idea is to release her from her current mortgage so she can put an offer on the house in a position as good as a first time buyer - if we buy her flat then she can say she has a definite sale.
Thanks
Bevill

Dave_Ham

This is easily achievable, although I would suspect this will be cost prohibitive.

Very expensive way of your daughter being a first time buyer.

All the best