Bridging Loans For The Older Client
Bridging loans can be used for a variety of purposes by both businesses and individuals.
It could be that someone is looking to move to larger commercial or residential premises that they have been able to negotiate a favourable purchase price for on the condition that they complete quickly. If the purchase is dependent upon the sale of their existing property and the sale has become protracted they could consider arranging bridging finance to avoid loosing the new premises.
If you are a business owner, you could require short-term finance to purchase new plant and equipment that you have been able to obtain at a significant discount and wish to liquidate the borrowing once your old machinery is sold at auction in the next few weeks. A bridging loan may meet your needs.
There is a less well-known market for bridging finance but one that is becoming more popular and this involves the older client that is looking to downsize their home. As more and more people are living longer, some reach an age when they prefer to move to a smaller more manageable home. For many, their assets are mainly tied up in their home so they need to sell their existing property in order to realize the monies to be able to complete on the purchase of the new property.
Yes, it would be preferable to be able to arrange a contemporaneous sale and purchase but if this suddenly becomes problematic perhaps due to your purchaser not being able to complete the transaction on the same date then, if it means you avoiding loosing out on the purchase of your new home, you could consider applying for a bridging loan to complete the purchase.
Hopefully, your age should not present a barrier to you should you wish to obtain a bridging loan.