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Equitable Deposit

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  • 24-07-2012 4:14pm
    #1
    5live
    Closed Accounts Posts: 4,438 ✭✭✭


    My beloved bank contacted me today to say that due to the change over of folios to digital folios that some security on a loan i have is not possible ie a folio on equitable deposit. Does anyone know what has/should replace this type of security? Thanks in advance


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    #2
    Marcusm
    Registered Users Posts: 10,208 ✭✭✭✭Marcusm


    5live wrote: »
    My beloved bank contacted me today to say that due to the change over of folios to digital folios that some security on a loan i have is not possible ie a folio on equitable deposit. Does anyone know what has/should replace this type of security? Thanks in advance

    Seems curious unless you have applied for the property to be registered which might be difficult given that the bank's security is that they have physical control of the title deeds to your house.


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    #3
    Farcear
    Registered Users Posts: 618 ✭✭✭Farcear


    Bank charge registered as a burden on the folio.

    It's much better security for the Bank than an equitable deposit of deeds.


    The change to digital folios wouldn't affect this as the Land Cert system isn't operation anymore, so it does seem a little stange. In what context has this come up OP?


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    #4
    5live
    Closed Accounts Posts: 4,438 ✭✭✭5live


    Farcear wrote: »
    Bank charge registered as a burden on the folio.

    It's much better security for the Bank than an equitable deposit of deeds.


    The change to digital folios wouldn't affect this as the Land Cert system isn't operation anymore, so it does seem a little stange. In what context has this come up OP?
    Sorry for the delay, i was away for a while.
    When negotiating a loan backed by the folio as security, we came to an agreement that because the security from the folio was so much in excess of the loan value, the folio would be split in 3. One to remain unburdened by that loan, one as security on the loan and one as equitable deposit. That was in 02. Between lack of progress with the engineer doing the split of the folio, the solicitor not carrying out the work and numerous changes (11:eek:) in manager, its only now the security issue is being adressed.

    Basically, i want the bank to have as little claim on the second folio as possible, if that is possible. They have in excess of 5x cover on outstanding loans on the folio so i reckon that is secure enough but they want all 3 folios as security, once again breaking the original agreement. It wolud be like being granted a mortgage but only with 11 other houses as security:rolleyes:. All loans are fully up to date and have been since drawdown btw but the bank, as usual, looking for excess cover

    Thanks for the replies folks:)


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    #5
    234
    Registered Users Posts: 1,529 ✭✭✭234


    Well since Land Cert no longer have any legal effect, you won't be able to create an equitable mortgage by depositing the cert with the bank. Since the 2009 Act the only means of achieving a mortgage on registered property is by registered charge on the folio, so all that is left if for you to negotiate with the bank taking into account the value of the land comprised in the folios and the value of the loan, the mortgage can only be achieved in one way though.


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    #6
    5live
    Closed Accounts Posts: 4,438 ✭✭✭5live


    234 wrote: »
    Well since Land Cert no longer have any legal effect, you won't be able to create an equitable mortgage by depositing the cert with the bank. Since the 2009 Act the only means of achieving a mortgage on registered property is by registered charge on the folio, so all that is left if for you to negotiate with the bank taking into account the value of the land comprised in the folios and the value of the loan, the mortgage can only be achieved in one way though.
    Thanks for that. I was just trying to get the folios sorted as per original agreement or as close as possible to that. If there is a specified replacement for equitable deposit then great but if not i was wondering what would/should replace it or if any guidelines were issued.
    If not then i would have to negotiate to get as favourable a deal for myself as possible


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    #7
    234
    Registered Users Posts: 1,529 ✭✭✭234


    As far as I know the only means of creating a mortgage since the 2009 Act is by a charge on the folio (in the case of registered land). You should definately consult with a solicitor, which I assume you are already are. If this is correct then it's all really a matter of negotiation rather than legal argument.


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    #8
    5live
    Closed Accounts Posts: 4,438 ✭✭✭5live


    Well, my solicitor is away for a few weeks and the bank want to get it sorted next week:(. Will just delat till he returns.

    Thanks to all for the input, much appreciated:)


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    #9
    Farcear
    Registered Users Posts: 618 ✭✭✭Farcear


    5live wrote: »
    the bank want to get it sorted next week:(

    They've apparently been happy to wait 10 years (!!!) to perfect their security.

    I think they can wait another week or two.


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