Can someone please tell me how the banks work out how much a line of equity is? say 80%, is it
House worth $330 000
Loan $130 000
Equity $200 000
So 80% of $200 000 Makes $160 000 availableor
House worth $330 000
80% is $264 000
minus loan $130 000
Amount available $134 000Any other ways?
Thanks
MarkMark Scenario 2 is correct
House worth $330 000
80% is $264 000
minus loan $130 000
Amount available $134 000remember many lenders go past 80% on a Line of Credit.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Mark Scenario 2 is correctHouse worth $330 000
80% is $264 000
minus loan $130 000
Amount available $134 000remember many lenders go past 80% on a Line of Credit.
My mother in law passed away recently and has left a villa in South Hurstville to my husband and brother. It was valued 3 years ago at $440,000 when she took out a Seniors Loan against the equity. The amount currently owed on the Loan is $120,000. Both my husband and brother in law have agreed for me to find a finance company to arrange for a loan to pay back St George their $120,000. And also to establish a line of credit against the rest of the equity to enable further property investments.Who can refinance the St George loan to enable a line of credit on the rest of the equity?
Is there anything we need to be aware of when the estate is finalised?
How should my husband’s brother set up his will?
What are the tax implications when the estate is finalised?
Hi PD
almost any lender could do a LOC these days. Which one will depend on your husband's and Bro in law's income and other requirements.
Not sure what you mean about the bro in law's will? He should be able to determine who he has in his will and who his share of the property will go to. If there is agreement that it will go to your family, then this could be accomodated in the will.
Incidently, have you head of testamentary trusts? This is where the assets can be willed into a trust – it has asset protection advantages and great tax saving advantages too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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