Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Mortgage

  • 11-02-2012 6:29pm
    #1
    LegacyUser
    Registered Users, Registered Users 2 Posts: 166,012 ✭✭✭✭


    Not sure where else to post this but anyway.

    Back in 2006 my sister and her then boyfriend wanted to buy a house in the UK but could not get a mortgage. So my other sister advised to ask my dad to buy the house and they would make the repayments and then take the loan out in their name.

    I was against it but didnt say anything as I didnt wanted to cause a family feud. Anyway my dad ended up buying the house by getting a mortgage out on a other house he had in Ireland. The mortgage was taken out in euro and then converted to sterling.

    The house came to €220k and my dad had more personal debt of €80k so the mortgage came to €300k. Then things started to go wrong 1st the euro got stronger so the money my sister and her bf were paying my dad didnt cover the mortgage repayments so he had to chip in then secondly the my sister and her bf split up. She came home and got someone to rent the house for £500 a month.

    My dad has been able to get the mortgage down to €255k but now the bank want my dad to pay back €3k a month even though he is now retired and I am looking for a bit of advice on this.

    My dad is luckier then most as he has a fair bit of assets to his name.
    1. Family home - no mortgage on this
    2. He and his sister (my aunt) where left a house by their parents - it was let for a good while but for the last 15 years no body has lived there and thus the house has fallen into disrepair - worth about €150k
    3. House in the west of Ireland - my dad built this house with his brother and was rented up until about 2007 as offices but is outdated and needs updating - worth about €170k
    4. House in the UK - worth about €130k now
    5. Was left a plot of land by his parents - zone as commercial and he nearly sold it for €300k - lucky to get €30k for it now.

    He always wanted to keep 3 houses to give to each of us (his children) but he needs to sell something.

    He wants to sell the house in the UK but I am unsure if that is the best option as it is the only house he is making money off and would result in a €90k loss and that is just because of the exchange rate.
    If he sold the house in the west he would have to pay a lot in tax but he wouldnt need to pay any on the house in the UK or the other house he jointly owns as it was left to him.

    My sister who asked me dad to get the mortgage is terrible with finances as I am always leading her money and isnt perm.
    My other sister has had a child and is looking to get a house with her husband.
    I on the other hand am perm but work in the UK and just a graduate so wouldnt be able to get any loan out.

    What should he do?

    Is there anywhere he could get personal advice on this issue?


Comments

  • #2
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,690 Mod ✭✭✭✭Stheno


    Yes he should talk to a solicitor imo


  • #3
    James W
    Closed Accounts Posts: 91 ✭✭James W


    I presume the mortgage is solely in the name of your Father.

    €220K pertains to the house - €80K of the mortgage, on the basis of what you've said, was related to your Father's personal debts. How much is the house relating to this mortgage currently worth and if it's sold what balance will remain on the mortgage (you suggest €90K) - whatever the balance is, this is what your Father will remain liable for - technically.

    €6,000 per annum rental income on a house which cost €220,000 is a very poor return and, in any event, it's 16% of the monthly mortgage the bank is looking for. It's not sustainable and it's a poor investment - even if it was mortgage free.

    The reason the bank want such a high repayment - I suspect - is because of your Father's age - they probably want the mortgage repaid over 10 years or less.

    Unless there was a clear legal contract signed between your Father and your sister then I very much doubt if there is a legally enforceable contract - though a Solicitor is your best source of advice in this regard. I suspect your Father would not wish to pursue such a course of action against his daughter.

    Ultimately, based on the information you have given, your Father is liable for the outstanding mortgage. Whether he may be able to negotiate a reduced settlement with the bank in terms of what is owed after selling the property is something he will need to work out - again a good Solicitor is his best option.


Advertisement