Sometimes a client will come to us with a large property they are selling, with the plan to downsize and free up some income from the equity. There are three hurdles that are faced by these clients looking for a retiree mortgage:
1. Retired Income and Age may not support finding new mortgage.
2. Being in a ‘chain’ creates a lot of pressure and has emotional implications, particularly if the house has been lived in for a long time. The London property market moves at such a fast pace that it disadvantages those that cannot move/sell quickly.
3. How to effectively manage the income when it is freed up from the sale.
Our solution was to find a private bank for this individual who offered a short term lending solution across 12 months at an interest rate on par with a traditional mortgage, so not as expensive as a bridging loan. This eased up the chain and allowed the client to buy the new property outright in cash, whilst waiting for their home sale to complete. 50 years of history within a house cannot be moved in a weekend and this facility gave the client the time to move in a stress free, great value and comfortable way.
In addition, the bank ensured that the clients inheritance tax liability was reduced, and that the income provided was optimized and secure.
This is just one example of how Enness Private Clients can find tailored large mortgage solutions for retirees. If you would like any more information regarding your financial options, feel free to contact one of our expert advisers for a personal consultation.