Bridging Loan Advice (or another solution!)

Sherbertfizz

Hello Hive Mind

My partner and I are buying a mixed use property (75% res 25% comm) for £940k.  Can't get access to £348k of the full amount we need until 12 Jan 2022 (£263k in a 120 day notice account, £85k in a 90 day notice account available on 13 Dec 2021 and the bank won't budge on earlier release).  We have promised the vendor that we will complete by the 30 November if possible and have looked at bridging finance.  Will cost us over £11k based on illustrations we have received.  So frustrating that we have the money but can't get at it (a salutary lesson in tying up funds) and it's going to cost so much for a 6 week bridge.  Anyone have any better ideas? 

Thank you in advance

Sandra

[Deleted User]

Push completion back.

They won't get anyone to complete earlier.

Grumpy_chap

Sherbertfizz said:

Hello Hive Mind

My partner and I are buying a mixed use property (75% res 25% comm) for £940k.  Can't get access to £348k of the full amount we need until 12 Jan 2022 (£263k in a 120 day notice account, £85k in a 90 day notice account available on 13 Dec 2021 and the bank won't budge on earlier release).  We have promised the vendor that we will complete by the 30 November if possible and have looked at bridging finance.  Will cost us over £11k based on illustrations we have received.  So frustrating that we have the money but can't get at it (a salutary lesson in tying up funds) and it's going to cost so much for a 6 week bridge.  Anyone have any better ideas? 

Thank you in advance

Sandra

I agree with @Deleted_User but normally notice accounts can release funds sooner subject to a penalty.  Would the penalties cost less than £11k?

Sherbertfizz

Grumpy_chap said:

Sherbertfizz said:

Hello Hive Mind

My partner and I are buying a mixed use property (75% res 25% comm) for £940k.  Can't get access to £348k of the full amount we need until 12 Jan 2022 (£263k in a 120 day notice account, £85k in a 90 day notice account available on 13 Dec 2021 and the bank won't budge on earlier release).  We have promised the vendor that we will complete by the 30 November if possible and have looked at bridging finance.  Will cost us over £11k based on illustrations we have received.  So frustrating that we have the money but can't get at it (a salutary lesson in tying up funds) and it's going to cost so much for a 6 week bridge.  Anyone have any better ideas? 

Thank you in advance

Sandra

I agree with @Deleted_User but normally notice accounts can release funds sooner subject to a penalty.  Would the penalties cost less than £11k?

Hi, I hear what you both say, and it's true that she won't get anyone to complete sooner, but she's leaving the country and we feel honour-bound to meet our commitment (as far as possible).  Re the notice accounts, they are with Secure Trust Bank, I have pleaded with them, but they tell me the only circumstances under which they will release funds early are death or serious illness.  Not even offered to withdraw with penalties.

Thrugelmir

Sherbertfizz said:

Grumpy_chap said:

Sherbertfizz said:

Hello Hive Mind

My partner and I are buying a mixed use property (75% res 25% comm) for £940k.  Can't get access to £348k of the full amount we need until 12 Jan 2022 (£263k in a 120 day notice account, £85k in a 90 day notice account available on 13 Dec 2021 and the bank won't budge on earlier release).  We have promised the vendor that we will complete by the 30 November if possible and have looked at bridging finance.  Will cost us over £11k based on illustrations we have received.  So frustrating that we have the money but can't get at it (a salutary lesson in tying up funds) and it's going to cost so much for a 6 week bridge.  Anyone have any better ideas? 

Thank you in advance

Sandra

I agree with @Deleted_User but normally notice accounts can release funds sooner subject to a penalty.  Would the penalties cost less than £11k?

but she's leaving the country 

What difference does that to the sale completion. If you cannot meet the date then a new buyer will need to be found. With the process starting all over again.