KIS Bridging Loans
Presented by KIS Finance
Bridging loans increasingly being used to help care for the elderly
KIS Finance

Firstly this is not an article about using a bridging loan or any other type of finance to pay for nursing care. This is about how bridging finance can be used to help increase retirement income or can be used to help facilitate a convenient move that otherwise may not happen.

Living longer

This may surprise many but the average age for a resident in a nursing home is 89 years old! People are going into care much later in life as we live longer and spend most of our old age at home. The average age of 89 is at its highest ever mainly because we are living longer and putting off going into residential care, preferring to stay at home. Putting off going into a care home also means considerably reduced fees, as residential care is very expensive unless paid for by the state.

Downsizing and modernising

As we get older our home may start to become impractical, usually due to its size and having more than one level. A small bungalow or a home that has assisted living may be much more convenient. At this time of life we should be mortgage free so it may be just a simple case of selling our existing property and downsizing into something more suitable.

However, quite often when someone has lived in their property for many years it may require some modernising. For example it could be a large old four bedroom property with a tired kitchen and one dated bathroom. This will be reflected in the asking price of the property, as most buyers will be looking for a modern kitchen, family bathroom and also an en suite. Many property developers look for such properties to buy, improve and make a profit.

Home improvements

In order to make the most of their income and assets for old age the homeowner may decide to carry out the improvement work themselves. Especially if the work is relatively straight forward, such as a new kitchen, bathroom and landscape the garden, in order to increase the value of their home before selling it. If funds for the work are not available a bridging loan may be taken out to fund the work and then repaid once the property is sold. Obviously before doing this the price of the work together with the bridging loan costs need to be taken into consideration and compared to the likely increase in sale price of the property.

Moving quickly to secure a purchase

As we progress in our old age we do tend to need an increasing amount of assistance and care. Many families, particularly the children, are often keen to help but in order to do so need to move their parents to a more suitable property that is closer to them. This is often the case as over the years families tend to move in different directions away from their parents due to work and other family commitments. It can be difficult to persuade a relative to put their property on the market and move out of their home. Therefore when an ideal property comes up that the elderly family likes, plus is more convenient and suitable, you may find yourself in the position of having to move quickly in order to secure the purchase.

Quick and flexible lending

Quick finance can be arranged by using a bridging loan, which is particularly convenient in these circumstances because the flexible lending criteria means that age is not necessarily a problem. Also the bridging loan will only be for a short period of time, in order to buy the new property and will be repaid upon the sale of the old property. This is a popular use as it can be very difficult to persuade an elderly relative to put their home on the market when they don't know where they are moving to. Plus, when they do find something that they like, by the time that they put their property on the market and sell, the new home may have been sold to someone else.


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