Hi guys,
I’m sure this has been covered off before my time, but are you finding it difficult getting banks to consent to second mortgages? Do they have a right to decline the request? Also if they see a caveat is it a reason for them to not advance further funds under its mortgage ? Interested in your thoughts as I wouldn’t have thoughts it should be a big issue to them if they are within there lvr guidelines based on a recent valuation .
Thanks
In some states the first mortgagee needs to consent to a second mortgage bring lodged, in other states no consent will be needed.
Most major lenders will consent, but they want all parties to enter into a deed of priority so that they can be sure they will come first. I am not sure if they can refuse consent or not, but contractlly you are probably agreeing not to allow a second mortgage without getting their consider – you will be agreeing to this in your loan agreement with them.Keep in mind that a mortgage can still be effective if it remains unregistered – but less secure for the mortgagee.
A lender won’t lend any more money if there is a caveat on title.
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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
