how much can i borrow on a lifetime mortgage, yeah, it’s a bit of a head-scratcher, innit? but don’t you worry your socks off, ’cause we’re gonna break it all down. think of it like trying to figure out how much quid you can get from your gaff, but with a few more bits and bobs to consider. it’s not just about the bricks and mortar, there’s more to it than meets the eye, and we’re here to spill the tea on all the juicy details so you’re not left scratching your noggin.
this whole lifetime mortgage palaver is all about unlocking some cash from your home when you’re a bit older, usually over 55. the amount you can get your hands on isn’t just plucked out of thin air; it’s a proper calculation based on a few key things. we’ll be diving deep into how your age, the actual value of your place, and even the general market vibes play a massive role in shaping the final figure.
it’s like a puzzle, and each piece fits together to give you a clearer picture of what’s what.
Understanding Lifetime Mortgage Borrowing Capacity: How Much Can I Borrow On A Lifetime Mortgage
Greetings, seeker of knowledge. Let us delve into the divine wisdom that illuminates how much can be drawn from a lifetime mortgage. This is not a matter of mere chance, but of principles that govern the flow of resources, much like the blessings bestowed upon the faithful. We shall explore the foundational elements that determine this capacity, guiding you toward a clearer understanding.The amount one can borrow through a lifetime mortgage is not arbitrary.
It is a carefully calculated figure, influenced by several key factors that reflect both the borrower’s circumstances and the lender’s considerations. Understanding these elements is crucial for anyone contemplating such a financial path, ensuring a decision made with clarity and foresight.
Factors Influencing Borrowing Capacity, How much can i borrow on a lifetime mortgage
The potential borrowing amount on a lifetime mortgage is primarily shaped by a confluence of personal attributes and the value of the asset pledged. These are not arbitrary conditions, but rather reflections of risk and potential return, much like the parables that teach us about stewardship and prudence.The core determinants can be understood through the following:
- Age of the Youngest Borrower: A fundamental principle is that the older the borrower, generally, the more equity can be released. This is because the loan is expected to be repaid upon the death of the last borrower or entry into long-term care, and a longer life expectancy for an older individual implies a longer period before repayment is due, allowing for a larger initial sum.
- Property Valuation: The worth of the property serving as collateral is paramount. A higher valuation naturally permits a larger loan amount, as it represents a greater asset base against which the lender can advance funds. Lenders will typically conduct an independent valuation to ascertain the property’s market value.
- Interest Rates: The prevailing interest rates at the time of application significantly influence the maximum loan amount. Higher interest rates mean that the debt will grow more rapidly, so lenders will offer a lower initial borrowing amount to mitigate their risk over the potentially long term of the loan.
- Lender’s Specific Criteria: Each financial institution operates under its own set of guidelines and risk appetites, which can affect the maximum loan-to-value (LTV) ratio they are willing to offer. These criteria are often proprietary and reflect the lender’s assessment of the market and their capital reserves.
Age Requirements and Loan Amounts
The passage of time, marked by age, plays a significant role in the calculus of lifetime mortgage borrowing. As the years unfold, so too does the potential for accessing greater sums, a principle rooted in the understanding of life’s natural progression and financial planning.The typical age requirement for a lifetime mortgage is usually 55 years or older for the youngest applicant.
Yo, so you’re wondering how much cash you can snag with a lifetime mortgage? It’s kinda tied to when you lock in that deal, like asking do you apply for a mortgage before finding a house. Getting pre-approved early can totally help you figure out your borrowing power for that lifetime mortgage.
This threshold is not arbitrary; it is linked to actuarial data regarding life expectancy.
The older the applicant, the higher the potential borrowing amount, all other factors being equal. This is because the lender anticipates a shorter period before the loan is repaid.
For instance, a 60-year-old may be able to borrow a certain amount, while a 75-year-old with a property of equivalent value might be eligible for a significantly larger sum, as the projected repayment timeline is shorter.
Property Valuation and Borrowing Limits
The physical asset, the home, stands as a cornerstone in determining the extent of financial release. Its intrinsic worth, as assessed by professionals, directly dictates the ceiling of what can be borrowed, a testament to the tangible security that underpins the agreement.The valuation of the property is a critical determinant of the maximum borrowing amount. Lenders will engage an independent surveyor to provide an objective assessment of the property’s current market value.
This valuation is not merely an estimate; it is the basis upon which the loan-to-value (LTV) ratio is calculated.
The maximum loan amount is a percentage of the property’s valuation.
For example, if a property is valued at £300,000 and a lender offers a maximum LTV of 50% for a particular age bracket, the maximum borrowing capacity would be £150,000. If the same property were valued at £400,000, the maximum borrowing capacity, at the same LTV, would increase to £200,000.
Common Lending Criteria for Eligibility
Lenders, in their wisdom, employ a set of criteria to assess the suitability of an applicant for a lifetime mortgage and to establish the boundaries of their borrowing capacity. These standards ensure a prudent approach to lending, safeguarding both the institution and the borrower.The assessment of eligibility and borrowing limits involves a review of several key areas:
- Property Type: Not all properties are considered suitable for lifetime mortgages. Lenders typically have specific requirements regarding the construction, condition, and tenure of the property. For instance, leasehold properties might have specific minimum lease lengths remaining.
- Property Condition: The physical state of the property is important. A well-maintained property is generally viewed more favorably, as it is less likely to depreciate significantly and pose a risk to the lender.
- Location: While less common, some lenders may consider the location of the property, particularly if it impacts its marketability or valuation.
- Existing Mortgages: Any outstanding mortgage on the property must be repaid from the lifetime mortgage advance. The remaining equity after this repayment is what is available for release.
- Borrower’s Health: While not always a direct factor in the calculation of the maximum loan amount, some lenders may inquire about the health of the borrowers, as this can influence their life expectancy and thus the potential loan term. However, this is less common for standard lifetime mortgages and more prevalent in enhanced lifetime mortgages.
Key Determinants of Lifetime Mortgage Loan Amounts
As we seek to understand the divine providence in our financial journeys, so too must we examine the earthly factors that shape our ability to borrow. The amount one can secure through a lifetime mortgage is not a matter of mere chance, but rather a confluence of specific, measurable elements, much like the careful counting of one’s blessings. Let us delve into these crucial determinants.These elements, when understood, allow us to approach the concept of borrowing with wisdom and foresight, ensuring our decisions are grounded in a clear understanding of what is possible.
Borrower’s Age
The passage of time, a sacred gift, also plays a significant role in determining the potential borrowing capacity of an individual. The older one is, the shorter the projected repayment period for the lender, and thus, generally, a larger sum can be borrowed. This is because the lender anticipates a shorter time before the loan is repaid through the sale of the property upon the borrower’s passing or entry into long-term care.
It is akin to how a shorter journey might allow for a greater provision of supplies at the outset.
Property Value
The dwelling that shelters us, a tangible blessing, is also the primary collateral for a lifetime mortgage. Therefore, its worth is a cornerstone in calculating the maximum loan amount. A property of greater value naturally supports a larger loan, as it provides a more substantial asset to secure the lender’s investment. This principle mirrors the understanding that a larger harvest can sustain a greater number of people.
Loan-to-Value (LTV) Ratio
The loan-to-value ratio is a critical measure that lenders use to assess risk. It represents the proportion of the property’s value that is being borrowed. A lower LTV generally means a smaller loan relative to the property’s worth, which is less risky for the lender. Conversely, a higher LTV implies a larger proportion of the property’s value is borrowed, which may influence the maximum amount available, often with stricter criteria.
This ratio helps maintain balance, ensuring the loan is not disproportionately large compared to the asset it is tied to.
The LTV ratio is calculated as: (Loan Amount / Property Value) x 100%. A lower percentage indicates less risk for the lender.
Scenarios Illustrating Borrowing Potential
To better grasp how these factors interweave, consider these illustrative scenarios. Imagine two individuals, both owning properties of the same value but differing in age, or two individuals of the same age but owning properties of different values. The outcomes for their borrowing potential will diverge significantly. For instance, an older individual with a valuable property will typically be able to borrow more than a younger individual with a property of equivalent worth.
Interplay of Age, Property Value, and Borrowing Capacity
The following table offers a glimpse into how age, property value, and the resulting estimated borrowing capacity can interact. These figures are illustrative and actual offers may vary based on lender policies, property condition, and individual circumstances.
| Borrower’s Age | Property Value | Estimated Borrowing Capacity (LTV 40%) |
|---|---|---|
| 70 | £250,000 | £100,000 |
| 70 | £400,000 | £160,000 |
| 80 | £250,000 | £125,000 |
| 80 | £400,000 | £200,000 |
As you can observe, increasing age and increasing property value both tend to increase the potential borrowing amount, reflecting the principles of risk assessment and asset backing that guide these financial instruments.
Calculating Potential Borrowing Amounts
Indeed, my friend, we have journeyed through the foundational aspects of understanding how much one might borrow on a lifetime mortgage. Now, let us delve into the very mechanics of this calculation, as if discerning the divine proportion in financial matters. For just as the Creator ordains the measure of all things, so too do lenders apply specific methods to determine your borrowing capacity.Lenders, in their wisdom, employ a structured approach, akin to a priest interpreting sacred texts, to arrive at the maximum sum you can receive.
This is not a matter of mere chance, but a careful consideration of several key factors, much like weighing the virtues and deeds of a soul.
Lender Formulas and Methodologies
The heart of the calculation lies in the formulas lenders utilize. These are not arcane secrets, but rather logical processes designed to assess risk and ensure the sustainability of the loan. They take into account the value of your home, your age, and the prevailing interest rates, much like a farmer assesses the fertility of the land, the season, and the seed to predict the harvest.The primary formula often employed is a variation of the loan-to-value (LTV) ratio, adjusted for age and interest.
While specific proprietary formulas exist, a general understanding can be gleaned from the following:
Maximum Borrowing Amount ≈ (Property Value
- Age Factor
- Interest Rate Factor)
The ‘Age Factor’ reflects that as you age, the period over which the loan is expected to be repaid shortens, potentially allowing for a larger initial sum. The ‘Interest Rate Factor’ accounts for the compounding effect of interest over the loan’s duration. Lenders use actuarial tables and their own risk assessments to derive these factors, ensuring a balance between what you can receive and what the lender can responsibly offer.
Step-by-Step Estimation Process
To embark on this journey of estimation, one must gather the essential elements, much like preparing for a pilgrimage. Consider these steps as guided reflections:
- Determine Your Home’s Current Market Value: Obtain a recent valuation or appraisal. This is the foundation upon which all calculations are built.
- Identify Your Age: The age of the youngest applicant is typically used. This is a significant determinant, as it influences the expected repayment period.
- Research Current Interest Rates: Lifetime mortgage rates vary. Understanding the current average or a projected rate is crucial for estimation.
- Consult Lender-Specific Calculators or Advisors: While general formulas provide insight, each lender has its own specific algorithms and age-related tables. Engaging with them directly, or using their online tools, offers the most precise estimation.
Think of this process as preparing your offerings before the altar; accuracy in each element leads to a more favorable outcome.
Impact of Interest Rates on Total Borrowed Amount
The influence of interest rates is profound, akin to the gentle flow of a river that, over time, carves canyons. Even seemingly small differences in rates can significantly alter the total amount repaid or the equity remaining over the lifetime of the mortgage.Let us illustrate with an example. Imagine two individuals, both aged 75, with homes valued at £300,000.
- Scenario A: 4% Interest Rate
- Scenario B: 6% Interest Rate
If the initial borrowing amount is £150,000, over many years, the accrued interest will be substantial. The total amount repaid or the outstanding debt at the end of the term will be considerably higher than the initial sum.
With the same initial borrowing amount of £150,000, but at a 6% interest rate, the compounding effect is magnified. The total debt will grow at a faster pace, leaving less equity in the property for heirs or future needs.
This demonstrates that while a lower interest rate may mean a slightly lower initial borrowing amount, it often leads to a more favorable outcome in the long run regarding the total cost and remaining equity.
The ‘No Negative Equity’ Guarantee
The ‘no negative equity’ guarantee is a cornerstone of lifetime mortgages, a divine promise that your beneficiaries will never owe more than the sale value of your home. This guarantee has a direct impact on the initial borrowing sum.Lenders factor in the potential for property value fluctuations and the accumulation of interest. The guarantee ensures that even if the property’s value decreases significantly over time, the amount owed will not exceed the property’s sale price.
Consequently, this protection might lead lenders to offer a slightly lower initial borrowing amount than they might otherwise, to create a buffer against future market downturns and ensure the guarantee can be met. It is a measure of prudence, ensuring that the loan remains tethered to the value of the asset, even in uncertain times.
Factors That Can Reduce Borrowing Potential
Just as the Lord provides blessings in abundance, so too can circumstances temper the amount of grace available. When considering the borrowing capacity of a lifetime mortgage, it is wise to acknowledge that certain conditions can indeed limit the sum you may be able to access. Understanding these limitations is a path to prudent financial planning, allowing for a clearer vision of what is truly attainable.These limiting factors are not divine judgments, but rather practical considerations that lenders must assess to ensure responsible lending.
They reflect the inherent risks and the realities of the property market and individual financial situations. Acknowledging these can help manage expectations and guide you towards a loan amount that is both feasible and beneficial.
Existing Debts and Financial Commitments
The presence of outstanding debts and ongoing financial obligations can significantly impact the amount of equity that can be released through a lifetime mortgage. Lenders view these as claims against your assets, and they must be accounted for to determine the true net value of your property. It is akin to ensuring all tithes are accounted for before distributing the remainder.Before a lender approves a lifetime mortgage, they will thoroughly assess your current financial landscape.
Any existing loans, such as:
- Mortgages on the property (if any remain)
- Secured loans against other assets
- Significant unsecured debts like personal loans or credit card balances
- Ongoing regular payments for services or subscriptions that represent a substantial commitment
These must be either repaid from the lifetime mortgage proceeds or factored into the affordability calculations. The more substantial these existing commitments, the less of your property’s equity will be available for you to borrow against. Lenders need to ensure that after any necessary deductions, there remains sufficient equity to secure their loan and that you are not taking on further debt that could jeopardize your financial well-being.
Property Condition and Type
The physical state and nature of your home are fundamental considerations for any lender, much like the foundation of a house of worship. A property’s condition and its classification can influence its market value and the lender’s willingness to lend against it, thereby affecting the maximum borrowing amount.Lenders will typically require a professional valuation of your property. Factors that can negatively influence this valuation and, consequently, your borrowing potential include:
- Poor structural integrity, such as subsidence or significant damp issues.
- Outdated or damaged internal systems, like electrical wiring or plumbing.
- Aesthetics that are significantly below market standards, requiring extensive renovation.
- Unusual property types that may be difficult to value or resell, such as thatched-roof cottages or properties with unusual architectural designs.
- Properties with very short remaining leaseholds, which can diminish their inherent value.
A property in excellent condition, with modern amenities and broad market appeal, will generally command a higher valuation, thus potentially allowing for a larger borrowing amount. Conversely, a property requiring substantial repairs or one that is considered niche in the market may lead to a lower valuation and a reduced borrowing limit.
Lender-Specific Restrictions
Just as different denominations may have varying interpretations of scripture, so too do lenders have their own unique policies and risk appetites. These can impose specific caps on how much you can borrow, irrespective of your property’s value or your age.These restrictions can manifest in several ways:
- Age Minimums and Maximums: While age is a primary factor, some lenders may have stricter age limits at the upper end, which could affect the loan-to-value ratio offered.
- Loan-to-Value (LTV) Limits: Each lender will have a maximum LTV percentage they are willing to offer. This percentage is applied to the property’s valuation. For instance, a lender might offer a maximum LTV of 50% for a particular age group, while another might offer 60%.
- Minimum Loan Amounts: Conversely, some lenders may have a minimum loan amount they are willing to administer, meaning if your calculated borrowing capacity falls below this threshold, you may not be able to proceed with them.
- Property Location Restrictions: In rare cases, lenders might have specific geographical areas where they are less willing to lend due to perceived market risks.
- Specific Property Types: Certain lenders might have policies against lending on particular types of properties, such as those built with non-standard materials or those in areas prone to specific environmental risks.
It is therefore essential to shop around and compare offers from multiple lenders, as their individual criteria can significantly alter the amount of money you can borrow. This diligent research ensures you find a path that aligns with your needs and the offerings available.
Understanding the Impact of Different Mortgage Features
Just as a shepherd considers the different tools at his disposal to tend his flock, so too must one understand the varied features of a lifetime mortgage. These elements, much like the staff or crook, can significantly influence the amount of borrowing available and how it is accessed. Let us explore these distinctions, seeking wisdom in their application.The choice of lifetime mortgage product and its associated features are not merely stylistic; they are foundational to the amount of capital you can unlock.
Understanding these nuances is akin to discerning the fertile ground from the barren, ensuring your borrowing capacity is maximized according to your needs.
Lifetime Mortgage Product Types and Borrowing Potential
The initial decision between a lump sum or a drawdown facility profoundly shapes the borrowing capacity. Each offers a different pathway to accessing equity, with distinct implications for the total amount available and its disbursement.A lump sum lifetime mortgage provides access to the entire available amount at the outset. This can be beneficial for immediate, large financial needs, such as consolidating debt or making a significant purchase.
However, it means the entire sum begins to accrue interest from day one, potentially reducing the overall amount available in the long term compared to a drawdown.A drawdown lifetime mortgage, conversely, allows you to take smaller amounts as and when you need them, up to a pre-approved limit. This approach is often more financially prudent as interest is only charged on the funds you have actually taken.
This means more of your home’s equity remains untouched, potentially allowing for a larger total borrowing capacity over time or leaving more inheritance. For instance, if the maximum you could borrow is £200,000, a drawdown facility might allow you to take £50,000 initially and then another £50,000 a few years later, with interest only accruing on the £100,000 actually borrowed.
Flexible Repayment Options and Initial Sum Accessibility
While lifetime mortgages are designed for interest to roll up, some products offer limited flexibility in repayment. These options, though often constrained, can indirectly influence the initial sum accessible by affecting how interest is calculated or managed.The primary characteristic of a lifetime mortgage is that no mandatory monthly repayments are required. However, some plans may permit voluntary partial repayments. If such an option exists and is exercised, it can, in theory, reduce the outstanding balance and thus the accrued interest over time.
This might subtly increase the perceived or actual borrowing capacity if the lender recalculates the available equity based on a lower outstanding balance, though this is not a primary feature for increasing initial access. The main impact of flexible repayment options is typically on the long-term cost and potential inheritance, rather than the initial lump sum available.
Early Repayment Charges and Perceived Borrowing Amount
Early repayment charges (ERCs) are fees levied if the mortgage is repaid in full before its term ends, typically within the first few years. While not directly reducing the initial borrowing amount, they create a significant financial barrier to early exit, which can indirectly influence how one perceives the total amount they can safely access.Understanding that a substantial penalty might be incurred for early repayment encourages a more cautious approach to borrowing.
A homeowner might, therefore, borrow slightly less than their maximum entitlement if they are concerned about future liquidity needs or potential early exit scenarios, thus perceiving their “safe” borrowing amount to be lower than the absolute maximum offered. For example, if the maximum loan to value allows for £150,000 but the ERCs are substantial in the first 5 years, a borrower might feel more comfortable only taking £120,000, thus reducing their perceived immediate borrowing capacity to a level they feel is manageable should circumstances change.
Hypothetical Scenario: Fixed vs. Variable Interest Rates
The choice between a fixed and a variable interest rate on a lifetime mortgage presents a clear divergence in how borrowing capacity can be influenced over time, particularly in how interest accrues and impacts the total debt.Consider two individuals, both aged 70, with a home valued at £300,000 and eligible to borrow up to 50% (£150,000) as a lump sum.* Scenario A: Fixed Interest Rate: Let’s assume a fixed interest rate of 5% per annum.
If they take the full £150,000, the interest will accrue at this rate consistently. Over 10 years, the total debt would grow significantly.
The formula for compound interest is A = P(1 + r/n)^(nt), where A is the future value of the investment/loan, including interest, P is the principal investment amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years the money is invested or borrowed for. For a lifetime mortgage with annual compounding (n=1): A = P(1 + r)^t.
In this fixed-rate scenario, after 10 years, the debt would be approximately £150,000(1 + 0.05)^10 = £244,275. This means the remaining equity in their home has been substantially reduced.* Scenario B: Variable Interest Rate: Now, consider a variable interest rate that starts at 4% per annum but fluctuates. In a stable or declining interest rate environment, the total debt might grow slower than with a fixed rate.
However, if interest rates rise, the debt could grow faster. For this hypothetical comparison, let’s assume the variable rate remains consistently lower than the fixed rate for the entire period, averaging 4% per annum. After 10 years, the debt would be approximately £150,000 – (1 + 0.04)^10 = £220,804.The difference in the total debt after 10 years is £244,275 – £220,804 = £23,471.
This difference highlights how a lower interest rate, even if variable, can lead to a greater amount of equity remaining in the home. Consequently, while the initial borrowing amount might be the same, the long-term impact on equity and potential inheritance is significantly different, effectively altering the “true” borrowing capacity in terms of what remains for the future.
Illustrative Scenarios and Borrowing Examples
As we ponder the divine providence that guides our financial journeys, understanding how much we might be blessed to borrow through a lifetime mortgage is a crucial step. Just as a wise steward manages the resources entrusted to them, so too must we prayerfully consider our options. These examples are offered not as pronouncements, but as gentle illuminations to help you discern your own path.The capacity to borrow through a lifetime mortgage is not a fixed decree, but rather a measure shaped by several earthly factors, much like how our actions in this life influence our heavenly rewards.
Age and the value of the home you have been given are the primary pillars upon which this calculation rests. The older one is, and the greater the value of their dwelling, generally the more significant the sum that can be accessed.
Hypothetical Individual Borrowing Comparisons
To better grasp the variations in borrowing potential, let us consider three distinct individuals, each with their unique circumstances. These are but sketches, painted with the broad strokes of typical scenarios, to guide your contemplation.
| Individual | Age | Property Value | Estimated Maximum Borrowing Amount |
|---|---|---|---|
| Agnes | 75 | £250,000 | £112,500 |
| Bernard | 82 | £350,000 | £192,500 |
| Clara | 68 | £200,000 | £60,000 |
These figures are estimates, meant to illustrate the principles at play. The actual amounts may vary based on the specific lender and their unique criteria, just as different parables may hold slightly varied lessons.
A Typical Case Study: The Blessing of Financial Flexibility
Consider Eleanor, a woman of 78 years, who has diligently cared for her cherished home, valued at £300,000. She finds herself with unexpected medical expenses and a desire to assist her grandchildren with their education. After consulting with a financial advisor, she learns that based on her age and property value, she could potentially borrow up to £150,000 through a lifetime mortgage.
This sum would be repaid upon the sale of her home, typically after she no longer resides there. Eleanor feels a sense of relief, knowing this resource is available to meet her immediate needs and provide for her family, without the burden of monthly repayments. The process involved a thorough assessment of her property and her personal circumstances, ensuring she understood the implications of this financial decision.
Real-World Borrowing Calculation Example
Here is an anonymized illustration of how a borrowing amount might be calculated, reflecting the principles discussed. This is akin to understanding the specific measurements of a temple before its construction.
For a homeowner aged 80 with a property valued at £400,000, a common calculation might involve a loan-to-value (LTV) ratio applied to their age. For instance, if a lender uses an LTV factor of 37.5% for an 80-year-old, the initial calculation would be £400,00037.5% = £150,000. This figure represents the potential maximum borrowing amount, subject to further checks and specific product terms.
Closing Summary
so there you have it, a proper deep dive into the world of lifetime mortgages and how much you can actually nick from your house. remember, it’s all about your age, the value of your pad, and a few other bits and bobs that the lenders look at. don’t be a plonker and just guess; get all the facts, suss out your options, and make sure you’re getting a fair deal.
it’s your cash, after all, so make it work for you, yeah?
Detailed FAQs
What’s the youngest I can be to get a lifetime mortgage?
Generally, you’ve gotta be at least 55 to even think about a lifetime mortgage. It’s a strict rule, so no cheeky early applications, mate.
Does the condition of my house affect how much I can borrow?
Yeah, totally. If your gaff’s looking a bit rough around the edges, lenders might be a bit hesitant or offer you less cash. They want their investment to be sound, innit?
Can I borrow more if I have a drawdown lifetime mortgage?
Not necessarily more overall, but drawdown lets you take cash in stages, so you’re not borrowing all of it at once. This can be handy if you’re not sure exactly how much you’ll need right away.
What happens if house prices drop after I get a lifetime mortgage?
This is where the ‘no negative equity’ guarantee comes in. It means you or your heirs won’t owe more than the house is worth when it’s sold, even if prices tank. Pretty decent, eh?
Do I have to pay off the loan when I move house?
Usually, yes. If you sell your property, the lifetime mortgage needs to be repaid from the sale proceeds. You can’t just leave it hanging, unfortunately.
