Can we borrow money against Mum's house to buy a Warden flat?
Posted on 25 September 2014 by Michael
My mother is 83 and owns her house with no mortgage - it has been valued for a quick sale at £275,000. We need to get her into a warden flat ASAP. She has found a suitable flat at £125,000. Is there any way we can borrow this money against her house until it is sold and then pay off the loan/mortgage ASAP?
This sounds like a classic bridging scenario, the low Low to Value (LTV) and exit strategy of sale of the property, makes this deal for this type of lending.
Because the interest is 'rolled up' (added to the loan), there's no real afforability assessment needed, so it's usually much quicker to arrange too.
Due to your mother's age, the lender will normally want her to have taken independent legal advice.
If you'd like to discuss the options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a clearer idea of how we can help.
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