2nd mortgage

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robread
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@robread
Join Date: 2005
Post Count: 3
February 4, 2005 - 5:40 am
Hi All,
does anyone know what the legal costs are for a 2nd mortgage. Do all lenders who hold the first mortgage allow a 2nd to be placed on the title.
Cheers Rob
woodsman
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@woodsman
Join Date: 2004
Post Count: 714
February 4, 2005 - 5:47 am
Rob,
Doesn’t answer your question directly, however most lenders would not allow a second mortgage on title. Another option would be to have an unregistered mortgage or caveat on title.
Caveats are approximately $100 for Vic (inclusive of Land Titles Office charge & your solicitors charge)
robread
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@robread
Join Date: 2005
Post Count: 3
February 4, 2005 - 5:54 am
Thanks woodsman for your response. Any idea how much a solicitor would charge to create a caveat? Can you give me any details on caveats, what rights they give each party.
Thanks again.
robread
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@robread
Join Date: 2005
Post Count: 3
February 4, 2005 - 5:57 am
Sorry, missed the solictors fees inclusive bit down the bottom. Still would be interested in knowing more about a caveat.
cheers
woodsman
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@woodsman
Join Date: 2004
Post Count: 714
February 4, 2005 - 6:09 am
Caveats are like a signal to a prospective purchaser, which has been lodged with the Registrar of Titles, indicating that someone else has an equitable interest in the property.
It prevents the Registrar of Titles from registering another interest against the title without first giving notice to the person who lodged the caveat.
The costs that I mentioned were for a caveat placed on an off the plan purchase in December 2003, so you may need to re-confirm their validity today. $59 title office fee & $38.50 solicitors fee)
brahms
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@brahms
Join Date: 2004
Post Count: 485
February 4, 2005 - 12:35 pm
what part of finance broking do you work in Rob?
cheers
brahms
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 7, 2005 - 3:04 pm
For a second mortgage, you would be looking at legal fees and costs for loan contracts to be drawn. There would also be stamp duty on the mortgage and other govt fees.
A lot of lenders do allow second mortgages, many don’t – I am not sure of which.
Caveats are much easier, but offer less protection.
Terryw
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