Refinancing jointly held property

[PHF]

Hi,
some brothers/mates and I purchased a property a few years ago which is now worth about $600K. The loan is in all 4 of our names and has nearly $300K to go.
With the loan having all four of our names on it, borrowing for other purposes is a real nuisance. Is there a lender that would let us refinance separately, ie, each of us has a loan for $75K secured against this property, rather than one combined loan of $300K?

Secondly, when the bank/LMI assesses my current LVR, obviously they will consider 1/4 of the property to be mine, but will they consider only 1/4 of the loan to be mine? ie, will my LVR be $75/$150 (50%) or will it be $300/$150 (200%) ?????

Thanks in advance for all your help

PHF

 

[Marty McDonald]

Amp will take your commitment as $75k if applying for a new loan and will take 1/4 of any rental income.

The problem with splitting the loan into 4 is you will all be guarantor for the others loans. Most will then take that liability as a "contingent liability" meaning it doesn't help your servicing position. There is a possibility with cba's "propery share" loan which may get around this. Happy to explore if you send me some more income / liability details etc.

 

[Rolf Latham]

Stg Have a similar view to AMP if you can show income from the other folks

In general though, 4 people on title is a mess and will only get more complicated as your individual lives get more complicated : )

ta

rolf

 

[PHF]

Thanks for your help guys.
Current lending is with CBA and they mentioned that we would have been better off with the "property share" loan you mentioned.
Apparently it cant be used for refinancing existing mortgages. Shame it wasn't available/suggested a few years ago when we set up the current loan.

Thanks again for your help

PHF