A property seller advance refers to a financial arrangement where a property seller obtains a short-term loan or advance from a bridging finance provider before the sale of their property is finalised.

This type of advance is designed to help sellers manage their cash flow needs during the transition period between selling their current property and completing the purchase of a new one.

It's important for property sellers to work closely with a reputable bridging finance provider like TWH Consulting, understand the terms and conditions of the property seller advance, and have a clear plan in place for repaying the advance once the sale of the existing property is complete.

As with any financial arrangement, seeking professional advice is advisable to make informed decisions.

• Interest and Fees: Like other forms of bridging finance, property seller advances often come with interest rates and fees. Sellers should review the terms of the advance, including the interest rate, repayment schedule, and any associated costs.
• Loan Amount: The amount of the property seller advance is usually determined based on the expected proceeds from the sale of the seller's current property. Lenders may provide an advance based on a percentage of the expected sale price.
• Eligibility and Criteria: Bridging finance providers assess the seller's ability to repay the advance based on the expected sale of the property. Lenders may require documentation related to the property sale, such as a signed sale agreement, details about the property being sold, and any other relevant financial information.
• Advantages and Considerations: Property seller advances can offer sellers the flexibility to make a new property purchase without having to wait for the sale of their current property. However, borrowers should carefully consider the cost of interest and fees associated with the advance, as well as the potential risks if the sale does not proceed as planned.