Funding a new property after divorce

£700,000 Loan for New Home

Our client was looking to purchase a new home with a value of £1.85 million. He needed a loan worth £700,000 to put towards the purchase of the property, with the remaining cost to be paid through a variety of other income channels including savings and investments.

The client’s existing home had a value of approximately £2.35 million and was previously the matrimonial house for him and his ex-spouse. This home had borrowing and charges against it which reduced the overall equity to about £1.27 million, and it was due to be sold when the client’s ex-wife moved into her own property.

This existing home was expected to sell quickly and, together with the lender, the client agreed that the money generated from that sale would go straight to the lender to pay off the loan. The lender did not want a charge against this property as security for the loan due to the complexity of agreeing this deal with both the client and his ex-spouse.

A loan of £700,000 was agreed on a 12-month term with 0.9% per month of retained interest.