Bridging loan to avoid stamp duty

Mattyholmes

Hi We're moving to a larger house with my Mum. Ours is sold but Mum's (SSTC) sale is delayed by local searches so we cannot complete. To avoid a significant stamp duty bill is a bridging loan a reasonable idea? Are there any reputable providers? Ive seen approx 1to 2 % fre plus 0.5 to 1% pcm interest. We'd need £200k to complete Any advice? Thank you

AdrianC

How much SDLT are you trying to save?

Flugelhorn

Is it worth it? What if the sale of mum's falls through and you are left with the bridging loan etc for months?

Mattyholmes

Sdt is a bit  over 11k Adrian 

Mattyholmes

Yes Flugelhorn its a risk for sure.
We think it should be safe. Survey has happened ok and buyer checks out as far as it is possible to know.
I gotcha!

SDLT_Geek

Perhaps the Budget on 3 March will extend the holiday by three months.

parkingadvice1212

SDLT_Geek said:

Perhaps the Budget on 3 March will extend the holiday by three months.

!!!!!! hope not! My chain will drag things out even more.

Mattyholmes

SDLT_Geek said:

Perhaps the Budget on 3 March will extend the holiday by three months.

Hopefully yes

Mattyholmes

Saw an article which talked about a 6 week extension would allow most properties to complete  bbc i think 

K_S

Mattyholmes said:

Hi We're moving to a larger house with my Mum. Ours is sold but Mum's (SSTC) sale is delayed by local searches so we cannot complete. To avoid a significant stamp duty bill is a bridging loan a reasonable idea? Are there any reputable providers? Ive seen approx 1to 2 % fre plus 0.5 to 1% pcm interest. We'd need £200k to complete Any advice? Thank you

@mattyholmes Nothing wrong with using a regulated-bridge to break a chain if the numbers stack up to a good saving overall and the LTV is low enough to make a bridge feasible.

You could check out a few broker websites (search for chain break bridging loan) to see what the options may be. 

There isn't cause to worry excessively about "reputable" bridging providers, plus this will be a regulated bridge (since it's to live in) so the advice bar is higher than it would be if it were for a rental.

In any case, you may not end up needing it anyway if an extension (as rumoured) is announced to 30 June.

Also, if they haven't already, might be worth asking your mum's house buyer if their lender accepts search indemnity insurance at all to speed up the process.

Mattyholmes

K_S said:

Mattyholmes said:

Hi We're moving to a larger house with my Mum. Ours is sold but Mum's (SSTC) sale is delayed by local searches so we cannot complete. To avoid a significant stamp duty bill is a bridging loan a reasonable idea? Are there any reputable providers? Ive seen approx 1to 2 % fre plus 0.5 to 1% pcm interest. We'd need £200k to complete Any advice? Thank you

@mattyholmes Nothing wrong with using a regulated-bridge to break a chain if the numbers stack up to a good saving overall and the LTV is low enough to make a bridge feasible.

You could check out a few broker websites (search for chain break bridging loan) to see what the options may be. 

There isn't cause to worry excessively about "reputable" bridging providers, plus this will be a regulated bridge (since it's to live in) so the advice bar is higher than it would be if it were for a rental.

In any case, you may not end up needing it anyway if an extension (as rumoured) is announced to 30 June.

Also, if they haven't already, might be worth asking your mum's house buyer if their lender accepts search indemnity insurance at all to speed up the process.

Fantastic  - thanl you very much!