Interim financing of a property – what would be the shortest period?
Does anyone know what the shortest period is for interim financing of a property?
Property #1 has already been sold. However, the proceeds will not be paid until we have completely cleared the property.
A purchase of Property #2 is imminent. The seller requires a financing confirmation as security. In this case, this would be short-term interim financing, since we don't yet have the proceeds from Property #1 in our account.
The plan is for the seller of Property #2 to vacate by October 30. We could practically move out of Property #1 on October 31 to move into Property #2. By then at the latest, the buyer of Property #1 would have to transfer the amount, which we could then use for Property #2 (the interim financing would then be paid off).
Ideally, it's only a matter of maybe a week, which we'd need to bridge with interim financing. Now the question is what the shortest possible period for such interim financing would be. Of course, I realize that banks want to make money from this, which is why such short-term financing has a "sporty" interest rate. On the other hand, I don't like having to sign up for at least a month, for example, to make it worthwhile for "others."
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I could imagine that, if all documents are submitted, it would be possible to make use of the overdraft facility at short notice.
You have to clarify with the bank what they are willing to do
Okay, I was hoping someone had done something like this before and knew what the minimum term would be. I'd prefer a daily bill. Because for the almost €400,000, the bank estimated something like €2,100 per month. As I said, this isn't a normal financing option with interest rates below 4%. Here, I think it's around 7%.