I'd appreciate some advice about the situation my partner and I are in. We've accepted an offer on our house, but are still waiting to exchange. However, we're optimistic about it going through. Very little is coming onto the market at the moment, we've had an offer accepted on a house we like, but the vendor has insisted, for tax reasons, that we have to complete by the end of March, or she will rent the house out. Between us we have a portfolio of £500k, including ISAs to the value of £355k, so we could sell these and pay cash. However, we will lose the tax benefit of our ISAs, plus, apparently, if we wanted to set up another portfolio once our house is sold, we would have to pay to do so. Would taking out a bridging loan be more appropriate? Of course, we could also move into rental accommodation. So - if anyone has any thoughts, i'd be grateful to hear them.
Why would you 'lose the tax benefit of your ISAs'?
You've had the benefit - they have grown tax-free whilst you've had them and there will be no CGT to pay on gains when you sell. You must have been investing for a long time to have £355k's worth between you.
Why would it cost anything to set up a new portfolio of ISAs? Get an online sharedealing account with your bank, subscribe for an ISA, and fill it with your choice of investments. Cost: zero.
In your position, I'd buy the house for cash if I really wanted it. Who knows whether your house sale will fall through? I'd also run a mile from a bridging loan.
How much would the bridging loan cost? If you're talking a few months and not a significant amount of money I'd go for the loan. I'd be very very reluctant to liquidate that amount of money in ISA investments as a short term solution. It would take so much time to be able to build the savings back up in a tax free wrapper!