When SPF told us their client needed to secure the purchase of a new home before selling their existing property to give their children access to the right school we had the perfect solution:

An ERC free short-term mortgage…

 THE CASE 
Moving to benefit from a different school catchment area that offered the right education for their children, the clients risked losing their ideal home after failing to secure a buyer for their existing property. They needed a fast and flexible solution to be able to buy now and sell later.
 THE PROPERTIES 
Their existing home is a five bed semi in Greenwich valued at £1.75m; the new home is a six bedroom Victorian semi valued at £2.6m, in Dulwich.
 THE FINANCIAL DETAIL 
The applicants had a substantial combined income from their city jobs as a barrister and lawyer respectively. However, one of the clients had recently been promoted from employee to self employed salaried partner with less than 12 months tax calculations as evidence of earnings available.

Their current home has around £1.5m of equity plus they own a buy to let property which has around £600k equity. Other assets included savings, a substantial inheritance, pensions and income from their rental property.

 THE SOLUTION 
To break the property chain we agreed a part interest only part repayment solution providing two short term ERC free mortgages on both the new and current properties.

Despite a recent change in employment status, long standing tenure within the same firm gave us confidence in the client’s salary expectations. We combined this income with potential drawdown created through the monetisation of assets, which together met affordability requirements for both mortgages.

Once a buyer was found, the client planned to use equity in the former home to fully repay the outstanding mortgage (of just under £250k) and use the additional equity against the new property to reduce the required long term single mortgage.

 THE OUTCOME 
By working closely with SPF we were able to agree the case quickly, ensuring the client had the keys to their new home and was moved in before the start of the new academic school year.
Do your clients need to purchase before selling? Just ask us at TFI…