malleeboyMember@malleeboyJoin Date: 2007Post Count: 6
After having seen some handsome gains from a couple of IP's over in WA I am looking to extract some equity out of these properties. My only problem is that I have purchased the properties as Joint Tennants with 2 other parties. How would I go about extracting the equity i require from these properties without negatively affecting the other parties and how does the bank view it? Any comments would be greatly appreciated.
CheersRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
You cant access the equity unless all of the parties to the Title agree to sign the mortgage documents.
One way would be to all parties apply to separate loans in all names on the property of equal amounts.wwsurveyMember@wwsurveyJoin Date: 2004Post Count: 23
Notice your comment above, on the same subject; My wife & I are in a joint tenancy with my sister and her husband in which we own outright how would the bank look at me wanting to utilise the substantial equity we have in the house? I don't want to sell it and developing it is about 12-18 months away, I just want to use some of the equity to keep building my portfolio and hate lazing money. thanks in advanceRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
Any new loan secured against the property for equity release will need the approval, consent and signature of all parties to the title.
Easiest way is to take out 2 split loans (some lenders will allow you to have the loans in individual names i.e you and your wife and the other in the name of yoru sister and her husband) with an underlying guarantee signed by all 4 parties.
Only problem would be if they dont want to move forward and access their equity and refuse to sign the new mortgage loan documents.MooseheadMember@mooseheadJoin Date: 2006Post Count: 42
On the topic of joint tenancy.
Say you wanted to purchase a property with a partner but one person was contirbuting a larger share of the purchase costs & ongoing costs. What would be the best way to set up ownership such that any profits (or loss) are distributed in unequal shares according to some agreed split?
You must be logged in to reply to this topic.