OK, I have a feeling I should know this, but I've been having trouble asking my lender the question in a way in which they understand, and I just know that some smart Somersofter is going to know the answer in a jiffy.
Let's say two parties - say two DTs with completely different sets of beneficiaries - want to go halves in a property, and let's say they want to put down a 30% deposit on a $1M property. Each DT contributes $150K cash each, and borrows $350K.
I assume it's possible to get a loan so that each DT is only responsible for its portion, ie if DT2 goes bust and this property is sold at a loss, then DT1's maximum liability is $350K (the amount of its loan), not the $700K that was borrowed in total?
If so, is this a special kind of loan? Do all lenders make these kinds of loan? Is there a terminology for it?
Can the DTs be tenants-in-common of the property (I suspect not), or do they have to each own units in a unit trust which owns the property? Or are there other possibilities for structuring such a deal?
Let's say two parties - say two DTs with completely different sets of beneficiaries - want to go halves in a property, and let's say they want to put down a 30% deposit on a $1M property. Each DT contributes $150K cash each, and borrows $350K.
I assume it's possible to get a loan so that each DT is only responsible for its portion, ie if DT2 goes bust and this property is sold at a loss, then DT1's maximum liability is $350K (the amount of its loan), not the $700K that was borrowed in total?
If so, is this a special kind of loan? Do all lenders make these kinds of loan? Is there a terminology for it?
Can the DTs be tenants-in-common of the property (I suspect not), or do they have to each own units in a unit trust which owns the property? Or are there other possibilities for structuring such a deal?