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Bridging Loan To Help Fund Care Home Fees Before Family Home Sells

£100K Surrey

Our client was looking for fast financing in order to pay care home fees for his mother – we secured bridging finance to help him resolve a financial strain during an emotional time.

The Scenario

A client approached us in need of raising approximately £100k – he needed to pay care fees, as his mother had to be moved into a care home unexpectedly.

The client had Power of Attorney over his mother’s affairs, and both parties planned to pay the expensive care costs by selling the family home - a £650k Surrey residential property - but neither was financially prepared. The problems were evident; 

  • The property would take time to find the right buyer, and the care home fees needed to be paid within a short time frame.
  • Additionally, they were looking to refurbish the property before putting it on the market – ensuring its full value.
  • They needed a quicker alternative to raising capital for both these problems.

Often, people need a quick solution when facing the expensive ordeal of moving a loved one into care. The situation is difficult enough without the added financial worries.

The Solution

When speaking with our specialist brokers, our client found the solution – a short-term (12-month) bridging loan at £100k, set against the family home and with “rolled-up” interest. This suited our client’s predicament perfectly as;

  • The £100k cash raised would cover care home fees for a year.
  • The term time of 12 months gave our client and his family the time needed for refurbishment and ensuring the property’s market value.
  • “rolled-up” interest meant interest could be repaid at the end of the term, as opposed to standard monthly payments – which may have impacted paying care home monthly costs. 
  • There were no early repayment fees – the client could avoid paying interest over the entire term of 12 months if it were repaid early. With bridging finance, interest is only accrued when the loan is outstanding. 
  • They were able to get a desktop valuation for their property, which is a free and faster alternative to a lender surveying in person. 

We also suggested utilising “dual representation” - solicitors who represent both the lender and the borrower - to speed up the process and reduce legal fees.

We worked through our client’s interest and the appropriate lender to secure the family the best bridging loan for their circumstances. The entire process, from application to funds delivered, took less than 20 days for our client.

Lastly, our client was reassured throughout the entire bridging process, from the overall costs to the time frames. In speaking with our specialist broker, his concerns were put to rest. 

Our client was able to secure finance to pay care fees on time, maximise the value of the family home and, ultimately, alleviate the financial strain during a stressful period.

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