Purchasing of own housing is a key act to provide for ourselves in older age. When one is interested in purchasing own housing, he is young and his needs are different from the ones later.
How to finance purchase of larger housing?
Starting Flats Are Usually Small
When young people are mature enough and decide for own housing, usually they purchase small one-room flats. Young couples purchase mostly two-room flats.
Then in case the family grows, this is not convenient anymore and it is not sufficient either. Young people then stand in front of a great dilemma.
While they are still repaying mortgage on the first small flat, they would like to move into a larger one, sell the old flat and purchase new property.
It is obvious that it represents difficult steps, that can take various amounts of time. Moreover time plays the negative factor here – when selling property under time pressure, it is easy to accept disadvantageous price. In this case time means money.
Solution to this is to use a special product of Ceska Sporitelna – bridge financing.
Bridge Financing Can Help to Sell a Flat Under the Best Conditions
It is possible to use bridge financing when you do not have sufficient funds for purchasing new property and you suppose to acquire money by selling the old flat, even the one with only partly repaid mortgage.
If you can get this financial product, first you can search for new property you would like.
After bank approves of the property (appreciation of the property is approved), then provides the money to pay for the new property, in full price. Then it is up to you to sell the old flat for the best price possible.
You are provided with 2 year-period, so you can wait for the best opportunity to sell.
In case of mortgage that is not fully repaid, it gives you the possibility to repay the rest of mortgage earlier without any penalties. This service is provided with all kinds of mortgages.