Changing Security

[WebBoard]

From: Will G


Situation :

1 PPOR
2 IP's

PPOR is used as security against both IP's.
I now have more than 20% equity in each IP.

How can I remove my PPOR as security from the IP's ?.

Is it a matter of getting the IP's valued and asking the bank nicely ?

Will

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Will

Ask your lender to make each loan separate or sole security based. They wont
mind doing it but will usually charge a fee in the process.

Ta

Rolf

 

[Rixter]

Reply: 1.1
From: Rixter ®


Rolf, What sort of fee does Westpac Charge ?
Is this Fee waived under the Premier Avantage Membership?
Happy Investing,
Rixter

 

[Rolf Latham]

Reply: 1.1.1
From: Rolf Latham


Hi Rixter

Depends

Usually a val fee per property of 125 to 150, and contract variation fee may alos be applied.

No these cost would not be covered by PA, but you could always tell the lender they shuld not have xcolled in the first place.

Ta

Rolf

 

[Jas]

Reply: 2
From: Jas


> From: "Will G" [email protected]

Hey Will

> PPOR is used as security against both IP's.
> I now have more than 20% equity in each IP.

Don't ya just love the capital growth!

> Is it a matter of getting the IP's valued and asking the bank nicely ?

Yep. Get 'em valued by a valuer on the bank's panel, and them present it
to the banks. You'll have to get new mortgage documents done up etc
etc, but that's about it.

One thing I'd do at the same time is set up a LOC against the PPOR so
that this doesn't happen again. That way you can fund deposits directly
from the LOC.

Jas

 

[duncan_m]

Reply: 2.1
From: Duncan M




> Yep. Get 'em valued by a valuer on the bank's panel, and them
> present it
> to the banks. You'll have to get new mortgage documents done up etc
> etc, but that's about it.

I dont pay for valuations. If you have a subtantial relationship with your
bank get the bank to revalue it (you'll need to take a LOC or something to
make it worth their while).

Duncan.

 

[Jas]

Reply: 2.1.1
From: Jas



> From: Duncan Margetts <[email protected]>
> > Yep. Get 'em valued by a valuer on the bank's panel, and them
> > present it
> > to the banks. You'll have to get new mortgage documents done up etc
> > etc, but that's about it.
>
> I dont pay for valuations. If you have a subtantial relationship with
your
> bank get the bank to revalue it (you'll need to take a LOC or
something to
> make it worth their while).

What I should have said was that if you get the valuer yourself, its
easier to get him/her to value the place at the price you want. They'll
be more receptive to your similar properties, arguments etc when you
(and not the bank) are their client.

Jas

 

[geoffw]

Reply: 2.1.1.1
From: Geoff Whitfield


My bank won't suggest a value, but will take a real estate agent's appraisal as proof of a value.