Which lenders will consider an 84 year old?

Charlton_King

A bridging situation. The borrower needs to move into sheltered accommodation (immediately) and requires £85k cash to do so. Current property value c£290k and will be rented out until sold at c£800/month.

Ideas please? A no-early-redemption fees situation is clearly preferable.

homer_j_3

what is the income of this elderly relative?
what mortgage if any is on the property?

Charlton_King

The income is from interest on savings together with various pensions - c£1k/month - plus the aforementioned rent. I imagine this would be seen as a BTL.

homer_j_3

If there is no mortgage on the property, the money could be raised through a mortgage on the let property.

There are a few lenders that will take that age - shockingly.

I would go and see a profesisonal adviser

Charlton_King

homer_j wrote: »

If there is no mortgage on the property, the money could be raised through a mortgage on the let property.

There are a few lenders that will take that age - shockingly.

I would go and see a profesisonal adviser

So the question actually posed in the OP is unanswerable?

MortgageMamma

why would you recommend bridging to someone which is expensive when they could raise capital on their current unencumbered property as a BTL? surely the BTL if minimal fee's would be more beneficial. There are plenty of lenders with no max age limit,

homer_j_3

Nice to see you on here MM.

The question is not unanswerable but I am limited in what information I can give on such little information.

As MM has suggested, the simple route would be to raise the 85k on a BTL mtg.

You need to seek profesisonal advice or take your own research from here.

Charlton_King

MortgageMamma wrote: »

why would you recommend bridging to someone which is expensive when they could raise capital on their current unencumbered property as a BTL? surely the BTL if minimal fee's would be more beneficial. There are plenty of lenders with no max age limit,

The situation is very simple.

He needs the cash to buy the sheltered flat but hasn't got it. He has to borrow it until such time as he can sell his current property but only until then.

The loan/mortgage will then be paid off, the required repayments in the meantime having been met with the rent from said current property. We hope this will be months rather than years.

This, to me, represents a financial bridging situation but perhaps it's described otherwise in mortgagespeak.

dan1979

Bridging finance is usually something that is only in place for a couple of days and incurs huge interest, example being if you bought a property at auction.

What you want is most likely a buy to let remortgage with no ERC's, a financial adviser will give you a list of the best options.

UK007BullDog

As you do not yet have a buyer for the property you are looking at "Open" bridging, which is very risky and very very expensive.

it is cheaper to get a early repayment free mortgage (some sort of Tracker without an early repayment penalty) to remortgage the property and release the equity for the old gentleman to buy his shelter accommodation.

Then the mortgage gets paid off with hardly any fees.

Bridging loans are mainly used when one already has a buyer who is 100% committed and shortly before completion. Otherwise the open option is the one but very expensive and if the property is not sold in a very short period 1 to 2 months it will get very expensive thereafter and could eat up the remaining equity within a short time.

Also a house does not sell well in that price bracket with a tennant in it. Better to sell it empty.

Leon_W

Yes, what you are after is bridging finance in "mortgage speak".

However, as others have pointed out, bridging finance is expensive and could be even more expensive given the age and the "open*" bridging that would be required.

I would agree with other posters suggesting a BTL mortgage with no Early Redemption Penalties. This would be the cheapest (and most flexible) option.

*Open Bridging is where there are plans as to when and how the money will be repaid, but nothing is set in stone. (I wouldn't want to bridge for a year waiting for a house to sell scenario !)

A "Closed" bridge is where somebody may have exchanged on their own property or a mortgage offer is in place already to repay the bridging loan.

Hope this helps.

Regards