Bridging Loan Raised Against £650k Surrey Home to Fund Care Fees Before Sale

Having a family member move into care can be an emotional and stressful experience, and worrying about care fees and moving costs only adds to the pressure.

Many people don’t realise how easy it can be to get a bridging loan against a property before it’s sold. You can raise quick, short term finance to pay for any immediate costs while you free up cash from elsewhere.

It's cheaper than using a standard personal loan, and you could get a much bigger loan size because it's secured against a property.

The Scenario

Our client contacted us as he needed to raise approximately £100k to pay for care fees for his mother, who had recently moved into a care home unexpectedly.

He had Power of Attorney over his mother’s affairs, but neither party were financially prepared for the high care fees. They could only afford them by selling the mother’s property – a £650k residential home in Surrey.

However:

• It was going to take a while to sell
  
  
• They wanted to ensure they got the full value for the property, not wanting to rush the sale.
  
  
• And, they wanted to complete some light refurbishments before putting it on the market – some general cosmetic improvements would go a long way to getting a better sale price.

The Solution

We presented our client the solution of raising a £100k bridging loan against the Surrey home on a 12-month term, with no early repayment charges.

It was a perfect result for our client:

• £100k cash would cover a year’s worth of care home fees and other costs
  
  
• The 12-month term gave them plenty of time to complete the renovations and realise the full value of the Surrey property.
  
  
• No early repayment charges on the loan meant they could repay it at any point within the 12 months. They could avoid paying the full 12 months of interest if they didn't use it.
  
  
• We used a lender that would use a free, online valuation of the property to minimise costs.
  
  
• And we recommended that our client used the same solicitor as the lender to speed up the process.
  
  
• And finally, we worked fast - from application to funds received in less than 20 days for our client.

What’s more, the peace of mind that our client had when speaking to our broker (an expert who reassured him of the bridging process, costs, timescales etc.) was invaluable – it put to rest his concerns regarding paying for the care fees on time and capitalising on the full value of his mother’s home.

See our complete services on bridging loans for care home fees.