Is change of trustee a new loan app?

[grantc]

Hi!
Our current loan with rhg is as a trust (trustee for family trust)
So the title & docs are in trustees name
we want to change the trustee which is easy to do by a minute of the trust.
but do we need the banks permission to do this - I assume we would need to notify the bank and the new trustee would then be recieveing all docs etc..
Would the new trustee in effect have to submit a new loan application to the bank?
Thanks for any advice here..
Grant

 

[Evachange]

I think you might need permission to do so, you should check the loan contract for details.

 

[Rolf Latham]

seeing that the trustee is the mortgagor.............

I suspect though that the old RAMS didnt ask for a fixed and floating charge nor a RMD, thus they owud be none the wiser ti the change of trustee usually.

beware though since RHG wants to get rid of as much as its book as it can...........so rumour has it

ta
rolf

 

[Terryw]

Yes. The trustee is the legal owner so title deeds will have to be changed. If title deeds change then the borrower will need to change too. This will be the case even if the guarantors are still the same.

Watch out for stamp duty issues too and possible resettlement issues (=CGT)

This is why it makes life easier if you have a company as trustee.