The lending barrier
A retired couple finds a smaller home before selling their existing property. Their purchase timetable is tight, and they need a way to manage the temporary overlap.
How we approached it
Assess equity, pension and investment income, temporary peak debt, the proposed end debt and a realistic sale timetable. Compare available bridging structures and security requirements. Allow for interest, selling costs and a slower sale or lower sale price in the funding plan.
The outcome
In this illustration, the couple purchases first and sells their old home three months later. Sale proceeds clear the bridging debt, provided the net proceeds are sufficient.
What this means for borrowers
The sale is the central exit strategy. Bridging structures differ, so security arrangements and release conditions must be confirmed rather than assuming the two properties can always remain separate.
Questions about this case
What happens if the existing home takes longer to sell?
The bridging balance and interest costs can persist for longer. The proposed sale timetable, loan term and contingency funds need to be reviewed before committing to the purchase.
This is an illustrative scenario comparable to deals we have handled for our clients. Figures and outcomes are examples; lending remains subject to individual assessment.