my parents guarantored 20% of my unit with their property when it was purchased a few years back.
If they want to sell their property now that holds the guarantee – what are the implications for them and for me if I still own my unit?
Your unit may have increased in value sufficiently that the Guarantee is now not required and therefore your parents can sell the property without any problems
Best to call and speak to your lender/bank and ask what their requirements are, they will probably wish to undertake another valuation to establish if you now have enough equity/security in your unit alone.
I would also guess that the principal amount of your loan would've reduced as wellMake sure your parents obtain a formal release of Guarantee from your lender
did they go guarantors or take out a mortgage to help you? If there is only a guarantor relationship, then the bank has no recourse over their assets but a liability should you default.
MarJac and Scott is right- get the place revalued and you may find the LVR is fine for you to service on your own. But even if they do sell, your parents are still liable if you default even without their home.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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