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

Mortgages - private shares

  • 01-07-2020 10:47pm
    #1
    TimmyOToole1
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hi folks,

    Appreciate your help. I have a friend who is looking to get a mortgage, but will struggle with salary, deposit. They are a shareholder in the company for whom they work; is there any way the value of these shares can be taken as an input towards securing a mortgage, or will banks not take them in to account. They would have some value theoretically, but a limited market (private company).

    Cheers for any insights.


Comments

  • #2
    Tommy Pickle
    Registered Users, Registered Users 2 Posts: 29 ✭Tommy Pickle


    TimmyOToole1 wrote: »
    Hi folks,

    Appreciate your help. I have a friend who is looking to get a mortgage, but will struggle with salary, deposit. They are a shareholder in the company for whom they work; is there any way the value of these shares can be taken as an input towards securing a mortgage, or will banks not take them in to account. They would have some value theoretically, but a limited market (private company).

    Cheers for any insights.

    Banks wont take any share holding into account, they would need to sell the shares and use the money from the sale to try achieve the mortgage.


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,624 ✭✭✭✭coylemj


    A shareholding in a private company is 100% useless as security.

    For all sorts of reasons....

    1. Liquidity, no open market where they can be sold. This is the overriding reason why no third party is interested in your shareholding.

    2. If there is a majority shareholder, he can stuff the board with his cronies and, at his behest, they can vote to not pay any dividends i.e. to starve you out. At which point, you have no option but to accept whatever derisory offer he makes for your shares.


Advertisement