Interest only? Bridging loans? Insurance? Other solutions?

Cliveclive

Hello all, would be interested in some quick advice.

My partner and I own a property which is currently rented out, and we ourselves rent somewhere else.

We've recently exchanged on a new build and we want to consolidate everything, as have no wish to start a property portfolio! So the place we own needs to be sold to go towards the new property.

The twist is that the new build is scheduled to complete in a bit over a year. This sets up an interesting situation, and I was wondering what our options are.

Obviously, the 'best' situation is that we would complete our sale on the exact day required, to minimise the loss of the rental income. The 'safe' situation is to put the place we own on the market right now, to ensure we have the cash when we need it, but then we'd be paying a years worth of rental income for that security.

Are there ways we could protect ourselves while still aiming to line the sales up as close as possible? For example, would it be possible to arrange an interest only morgage on the property we own that we would only actually use if we hadn't sold it by the time we need the money? Estate agents have told us the property could be marketed with tenants in situ, so the rental income could cover the interest only morgage until the property sold. Obviously fees would have to be paid on things, but I was wondering if such a thing were feasible or if there were any other products designed for this sort of situation.

Thanks