Short term loan/.equity release

[peskykitten]

I wish to borrow around �65,000 to use towards the cost of building a new house adjacent to my current house. I own my property outright, no mortgage and its worth about �270,000. The new build will be worth around �185,000 when completed.

Once building is completed I will sell my current house and move into the new build. I will then have more than sufficient funds to pay off the loan in full.

So I need a short term loan which can be paid up in full at the end of its term and no monthly repayments.

I heard that a bridging loan is unsuitable because I will be selling my current house to my daughter who is then considered a third party, so a bridging loan is not suitable in this circumstance.

Also not sure about equity release schemes as I thought these could only be paid up once i die, when I wish to sell the house to my daughter. Can these be repaid in full early?

I've got no clue! HELP!!!! Any advice welcome. Or even just to know where to go for the best advice.

(I am 64 years old & retired)

[buildersmate]

Why not just take a mortgage secured against the existing property then pay it off when you sell it. Just don't take one those fancy mortgages with ridiculous early repayment penalties.

[Oneeyedvic]

If you can do what buildersmate suggests then that will be your cheapest option - however at 64 and retired I suspect it will be difficult to prove income to service any borrowings for a 'normal' mortgage

You can quite happily use a bridging loan (the daughter buying your property is irrelevant) or possibly development finance.

Please feel free to contact me (during office hours) for free advice: http://www.allianceandgeneral.com

[JVR]

Hi - that's such an awful position to be in. I'm not an advisor, but i did see a story similar to yours here: http://www.nationalguarantee.co.uk/journal/. If thay helped someone else maybe they can give you the best advice?

Hope that helps

[malfirm]

Hello,
I am a private lender,I went through the website and found your loan request.I am willing to lend you.Contact me via email on [email protected]