how would i divide my Res A land up? I am in arrears with bank on mortage. My brother would like to help me and buy a sixth @ $250 000. He can get approved for a loan. Will my bank allow me to sell part of my property, would my brother be able to get finance for buing part of a preoperty. Will i have to go to council to subdivide. Any advise please
selling a part of development propertY
- Thread starter shazza123
- Start date
Do you want to both own part of the same title - him 1/6 and you 5/6 or do you want to sub-divide it so he owns 100% of 1/6 of the land area and you 100% of 5/6 of the land area?
If it's the first one then you will both be on the title and any loan will require you both to be on the loan. This will involve a change to the title and therefore your bank will need to get involved.
If you are selling part of the title (the second one) you'll need council approval for the sub-division and your bank will need to be involved.
Either way you to get the bank involved.
However if the arrears are your problem you should talk to a broker and lawyer first before talking to the bank because you are more likely to develop a strategy which will solve the issue whereas the bank will only tell you what they want. For example you might be able to setup up an agreement with your brother to solve the arrears issue before the settlement of the land title through a "deposit" payment.
If it's the first one then you will both be on the title and any loan will require you both to be on the loan. This will involve a change to the title and therefore your bank will need to get involved.
If you are selling part of the title (the second one) you'll need council approval for the sub-division and your bank will need to be involved.
Either way you to get the bank involved.
However if the arrears are your problem you should talk to a broker and lawyer first before talking to the bank because you are more likely to develop a strategy which will solve the issue whereas the bank will only tell you what they want. For example you might be able to setup up an agreement with your brother to solve the arrears issue before the settlement of the land title through a "deposit" payment.
If the land is just one title you will need to subdivide. You brother is a separate entity so he won't be affected by you being behind.
To subdivide the land will take time and the bank will need to allow the subdivision because they hold a mortgage over the land. Whether they will allow you to keep the land and do this will depend on how far behind you are and how you will be able to service the remaining loan.
To subdivide the land will take time and the bank will need to allow the subdivision because they hold a mortgage over the land. Whether they will allow you to keep the land and do this will depend on how far behind you are and how you will be able to service the remaining loan.
Im not fully familar with QLD land law but I imagine the easiest and quickest way out of this conumdram would be to draw up a background legal instrument of agreement between your solicitor and your brothers solicitor (fully signed and witnessed by ALL parties) ....... that for the consideration of $250,000 your brother has a vested 1/6 interest in the IP property. His security may be a caveat over your personal home and not necessarily the IP.
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