If we get this far we will talk you and your solicitor through everything, however, in short, if we haven’t sold the property yet, we advance the funds to you in exchange for a charge over either your existing or new property. If you wish to put the charge over your old property we will be entitled to the proceeds of that sale with an agreement to pay you your share of the upside once it is sold (you will already have received your guaranteed amount at this point).
If you have an existing mortgage these funds must be used to first pay-down the existing mortgage so that we can take clear security over the property. You are then free to get a new mortgage on (or port your old one across to) your new property. If you wish to put the charge on your new property, as soon as your old property is sold, you will be required to obtain a mortgage on the property to replace our charge. Again, this can be a new mortgage or you can port your old one across.