Navigating a complex property transition for HNW client
The situation?
I was approached by a client who owned a sizable family home on the south coast, seeking guidance on a significant lifestyle change. Feeling that the property no longer met their needs due to its size and location, they aimed to sell the asset and utilise the equity to downsize to a more manageable home.
The security property in question was a stunning Grade II listed building along the riverbank priced at £8.5 million. To facilitate the onward acquisition costs, a £2.5 million mortgage was required to cover the purchase, associated costs and necessary modernisation.
Time was of the essence. The new property had just been listed for sale for the first time in 50 years, and with growing interest, the vendors were contemplating an auction unless we could secure an exchange within four weeks. Additionally, my client, now retired and with limited income despite having other assets, faced challenges with traditional lending options.
Previous representatives had struggled to secure a loan term longer than 12 months, as short-term lenders often showed less interest in long-term arrangements for owner-occupied properties. Given the size and uniqueness of my clients current home, there would be no guarantee that 12 months would be a sufficient timeline to find a suitable buyer therefore a longer term was imperative for the borrower.
Drawing on my extensive experience, I recognised the importance of directly engaging with lenders to present my client’s profile effectively. I approached several lenders, leveraging my recent insights into those offering favourable terms suitable for my client’s unique situation. Understanding the urgency, I prioritised delivering a professional and detail-oriented service to meet the tight deadlines.
The solution?
Through strategic outreach, I successfully sourced a competitive bridging facility that provided the necessary funds for the property acquisition and associated costs. The arrangement included a 24-month term with rolled-up interest, ensuring no immediate strain on the client’s monthly affordability. Importantly, the solution came with no early repayment charges, allowing the client flexibility to repay in full, once a suitable offer for their existing home was secured.
By facilitating this effective funding solution, my client was able to secure their ideal new home under pressing time constraints, paving the way for a more comfortable retirement in a property that better suited their needs. The client expressed their gratitude for my services and is now looking forward to this next chapter.