Need advise on whether it’s possible to get a loan on a property if you don’t own all of it.
The situation is that my brother in law and his brother are both half owners in a property worth around $220K. It’s not an IP. They bought it for their mother to live in. They own it outright.
The question is is there any way for my brother in law to access around $100K so he and my sister can use it as deposit etc for an IP. What would be required for this to be possible. They don’t own any other assets.
Thanks in advance [smiling]
Elka
Hi Elka,
Your brother-in-law would be able to take money out of the property in his own name providing his brother went guarantor for the loan. They would have to come to an agreement, but this situation is quite common. I hope this helps.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hello Cameron
Thank you for taking the time to answer.
Do you think the bank would accept a guarantee from me instead? I am not sure that my brother in law would want to ask his brother for a guarantee or that he would get one if he asks.
Under what conditions might they accept my guarantee?
Be well
ElkaA bank cannot accept a guarrantee from you if you are not an owner of the property.
Terryw
Discover Home Loans
Parramatta
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you can guarantee his property using your own property ,but, not someone elses as Terry stated.
There are other ways to structure the loan though so not even a full half is used for the I.P. Purchase which may assist him with obtaining the finance without using the full 50%. This may assist him with selling the concept to his in-laws as the risk is lowered significantly in their eyes should they have concerns along those lines…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hi Elka,
The problem is that the name of your brother-in-law’s brother is on the title of the property. Therefore legally your brother-in-law is unable to borrow against the property without his brother providing a guarantee. As Stuart says you could go guarantor for a loan against your own property, but not your brother-in-law’s unfortunately.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Thank you all for your replies. I guess I will have to try and persuade my brother in law to approach his brother.
Elka
How did your brother in law go in approaching the brother? If he didnt have any luck there are lenders that will lend up to 106% of an investment property purchase…………….
Hello Anita
I believe he hasn’t approached him yet but I’m still working on it.
Can you give me the names of a couple of these lenders please.
Thanks in advance
ElkaThere are quite a few but the ones that I use are:-
– First Permanent
– First Mac
– Carrington National.I would recommend use a broker with no brokerage fees to shop around for you though because the rates, fees and charges vary quite a lot with these type of loans.
RAMS have also just issued a 110% loan if you have equity in another property and i DONT THINK that you have to use that property as security but I would need to check on this for you as this product was only released last week so I dont know the full ins and outs of it.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Thank you for that Anita. If we need to use this option I will be back.[smiling]
Sorry for the long delay in answering. I either did not get or missed my wake up call.
Best wishes
Elka
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