Elderly person trading down/across: what is the best way to finance this?

[ajapale]

An elderly friend of mine wants to buy a more suitable smaller house in an different area. There is no mortgage on her existing property. The properties are roughly the same value.

If she uses her savings to purchase the new house this will leave her about €100k short until the sale of her old house goes through. Property here takes about 6 months to sell and in some cases can take up to a year.

She is on half her late husbands occupational pension from which she is able to save a small amount each month.

What are the best options for this 70 yo to get short term finance for 6-12 months?

Thanks,
aj

 

[deem]

my mum got an interest only mortgage to buy a second property at the age of 62, due to retire in august and will then repay mortgage from sale of family home when sold or from retirement lump sum,

The other option would be to get bridging loan, not sure about costs, could your friend not look as selling own house and buying new house at same time, isnt that what most people do regardless of age

 

[ajapale]

Thanks Deem,

Ill advise her to investigate an interest free mortgage. Does any one know what charges migh be associated with such a short term mortgage?

Ill also advise her to investigate bridging finance. Does anyone know what kind of rates she could hope to negotiate.

Unfortunately she has to purchase the new house now and the properly market is sluggish in the area she is selling.

Thanks again,
aj