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Redemption of loan

  • 03-01-2012 01:50PM
    #1
    Palmach
    Registered Users, Registered Users 2 Posts: 1,052 ✭✭✭


    I have a business loan secured on my property where the business is. Part of it is leased to another business who want to buy. The bank no longer operates in the Irish market. Does anyone have experience of banks taking less than the full redemption value or will the fact that they effectively own the property mean they can simply refuse to ball and demand the entire redemption value?


Comments

  • #2
    chris85
    Registered Users, Registered Users 2 Posts: 4,502 ✭✭✭chris85


    Palmach wrote: »
    I have a business loan secured on my property where the business is. Part of it is leased to another business who want to buy. The bank no longer operates in the Irish market. Does anyone have experience of banks taking less than the full redemption value or will the fact that they effectively own the property mean they can simply refuse to ball and demand the entire redemption value?

    With the security the have on the loan it is unlikely they will accept any reduced settlement of the loan.

    Of course they can refuse to "play ball". They have a contract with you for an amount to be paid back with interest. If you offer lower than the capital remaining they are entitled to simply say no and give no reason for it. Also if its a fixed rate loan there may be charges for early redemption of the loan.


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