Selling an IP, can I keep the loan?
- Thread starter Ray Brown
- Start date
Ray Brown said:
Yes, you can do a transfer of security in most cases (assuming the valuations work out etc.
We did this when we sold one IP on a fixed interest (hence would have got break fees), but used the proceeds of sale to pay out a variable on another IP, and made it the security for the fixed loan (oooo.... that was confusing....
)Cheers,
The Y-man
You should be able to offer the bank a substitution of security; this works normally as follows:
1. Sell house
2. Deposit sales proceeds into term deposit
2. Offer bank term deposit as security until you find another property
1. Sell house
2. Deposit sales proceeds into term deposit
2. Offer bank term deposit as security until you find another property
Ray l sold an ip over a year ago and kept the loan.I paid out most of the loan leaving $1000 drawn it cost me $5 pm to keep this loan set up.The ip had other security attached to it so it was a case of getting revals done.My loan had a redraw facility which l am told is important when doing this.Just last week l used this old loan to buy some MFs
cheers yadreamin
cheers yadreamin
Hi Ray,
As Y-Man says, transferring the security should be simple, but a word of warning to be careful with the documents when you do this.
One of my clients thought that he was doing this, and then signed the documents in a rush, without reading them . The bank got the documents wrong and set up a new loan for him and charged him a whole new set of fees . We had a really tough time arguing to get the fees reversed because he had signed the documents.
Cheers, Medine
As Y-Man says, transferring the security should be simple, but a word of warning to be careful with the documents when you do this.
One of my clients thought that he was doing this, and then signed the documents in a rush, without reading them
. The bank got the documents wrong and set up a new loan for him and charged him a whole new set of fees . We had a really tough time arguing to get the fees reversed because he had signed the documents.Cheers, Medine
