High Net Worth 3 Year Bridging Loan in UK Property Market

3 Year Bridging Loan

If you, like many high-net-worth individuals, are asset-rich but cash-poor, you might need liquidity. Your substantial property wealth could provide the answer. Our client, a resident of a £7,000,000 garden square property in Kensington faced a liquidity challenge but found a solution in our 3 year bridging loan.

The Challenge

During the pandemic, our client’s primary income source had dried up. This situation coincided with his Kensington home’s refurbishment. Building control had not yet approved the works, and he required an additional £200,000 to complete the project. Moreover, he needed to cover three years of living expenses, including his children’s school fees, without relying on employment income.
He aimed to stay in his property for at least three years. His plan involved clearing his mortgage by selling the property after his children’s education concluded.

Large Bridging Loan

We provided a tailored finance solution: a 3-year bridging loan. This loan enabled the client to maintain his lifestyle and avoid monthly repayment stress. The loan would be repaid once upon sale of the property. The loan included £200,000 for the refurbishments and sufficient funds for three years of living expenses and school fees.

Understanding “High Net Worth Exemption Mortgages”

For your main residence, bridging loans typically have a 12-month maximum term. However, our client qualified for a high net worth exemption mortgage. Unlike standard mortgages, these are more adaptable and allowed a three-year term in this case. For further details on these mortgages, read our article on high net worth exemptions and complex income for mortgages.

The Results

We arranged a £1,600,000 mortgage with no monthly payments for our client. The loan term extended over three years, providing him the freedom to sell when he chose and secure the best price for his property. The loan covered three years of living costs, school fees, and the completion of the refurbishments.

Planning for the Future

With financial stability for the next three years, the client can complete his refurbishment and plan ahead. He aims to sell the property and relocate to the countryside, using the sale proceeds for his retirement. The 3-year bridging loan has granted him necessary financial leeway.

Is a 3 Year Bridging Loan Right for You?

A 3-year bridging loan might be your ideal solution if you face similar financial constraints. It offers a flexible, practical way to utilize your property wealth amid temporary financial difficulties. To estimate the potential loan size, use our bridging loan cost calculator.
For more insights into large bridging loans, consult our guide to large bridging loans.

Advias takes pride in delivering custom financial solutions for high-net-worth individuals. If you’re considering your options, feel free to contact us for a no-obligation chat.

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