Investment - Bridging Loan

H

Honeymelon

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Following a recent family bereavement a family member wishes to buy the family home.

To fund the purchase we were hoping to use funds which were in a Pension Fund. On examination of this option, it appears that it is not possible to purchase an asset which you have an interest in from your pension fund.

Another option is to use funds which are currently in a Performance Tracker account. This is due to mature in 2019 and the terms and conditions specifically state that you cannot draw down the funds early. We have contacted the Financial Institution who have confirmed that there is no option to withdraw these funds prior to the Maturity date even with a penalty.

We have approached one of the main Banks to query if it is possible to obtain a loan with the Tracker account as security. The bank has advised that this would be a form of a Bridging loan which are no longer available and the only option is a Buy to let option. We feel it would be difficult to qualify for such a loan.

My question is, are there any other institutions where you could avail of a loan with the security of the Performance Tracker amount for a period of approximately one year?

Many thanks
 
It would not be unusual for a property sale from a deceased persons estate to take more than a year to take place.
 
Would the other beneficaries not finance it by just leaving the proceeds outstanding for the relevant period?

They could even charge an appropriate rate of interest.
 
Honeymelon said:
Following a recent family bereavement a family member wishes to buy the family home.
Click to expand...

It looks like Gordon's solution is the cleanest.

You should provide more information such as the value of the estate, the value of the property and who is entitled to share in it so that you can get a more meaningful answer.

Brendan
 
If the suggestions above don't work in this specific case, and the sale must be completed, can you provide more info in relation to the person wanting to buy the house:
Do they already own their own property? And if yes, is there still a mortgage?
Values of:
Their own home
Outstanding mortgage
Value of house they want to buy
What deposit they can provide towards it, and what their 'share' of the inheritance from house is, if applicable.
In relation to the investment bond: was it issued by a bank, and is it capital guaranteed?
 
Many thanks for the responses.
The home will be of the value of €100k split equally between a family of 8.
Unfortunately none of the other family members are in a position to fund the purchase and some are in need of the funds from the sale.

As regards the purchaser, they already have a mortgage on an investment property and do not believe they would qualify for another mortgage on an 'investment property'. They do not have a mortgage on their own PPR.

Many thanks
 
Try Pepper.

They might well give a loan secured on the family home for such a purchase.

If there are 7 people getting €12,500 each, do they all need it immediately? If only three of them want it, then maybe borrow only €38k and pay the others when the investment matures.

Brendan
 
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