Hi,
My uncle has equity in his own home, and i have made a deal with him to borrow it from him and split the profit.
May i know how do i access his equity? does the bank do it, or solicitor? etc?
Pls advice
Hi Fullout
You have to establish a loan against the property with a lender. The lender will probably want you to both be applicants to the loan (no real difference if he is an applicant or guarantor).
This will impact on his borrowing capacity.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auHey, Id do a ring around of some brokers, just to see what your options are!
Be aware that what some brokers say cant be done, others will be able to do, so get 4 to 5 opinions.
Set yourself a 3 to 6 month Research Project and just to find out all the different ways u and your uncle can work a deal.
Remeber, the golden rule! ALWAYS ALWAYS put your agreement down in writing!
Im going into partnership with my mum, and were planning to put our agreement in writing, just so both parties know where they stand.
Good luck!
KIt’s probably much the same as my wife having to go guarantor with her half of our PPoR for IPs in my name. She had to get independent legal and financial advice as part of the guarantor process. I believe these steps are now legally required before the bank can accept her as a guarantor.
easy
Your uncle simply gets a loan increase (a split or a LOC) and lends you the money. That is the safest way for your uncle to do it. That way his home is not on the line. And it won’t affect your borrowing capacity.
Terryw
[email protected]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
terryw,
he fully owns his house now, so there is no loan on his house anymore. What to do? thanks
fullout,
It really doesn’t matter if he owns the property outright, as Terryw said, he just needs to get a Line of Credit on his property, then he can just pull out however much it is you need and lend you
the money. If you don’t know what you’re doing it is always best to get professional advise from a good broker, banker or financial advisor. (finding one might be the biggest challenge!)cheers.
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