Will Caveat Transfer

[Queen Bee]

Hi all,

I'm in a bit of tizz now, so hope someone's got some advice.

Have been on and off about selling my PPOR for about a year. Went through a closed tender a while back and it was so stressful, cos of the emotion involved in buying a PPOR that I changed my mind. Now we've been discussing it again. We suspect that the piles are shoddy just because of things we've been noticing around the house, but we haven't had them checked out - partly because I'm scared of what they will tell me! Stupid ah

Anyway, we're freehold on this property and have two IP's. Thought they were x-c'ed against my PPOR but looks like it's probably only a caveat after discussions I've had on this forum. Thank god!

My question is: if I buy another PPOR and I want to get one that's worth the same as the one I have (or less) so I don't have another mortgage, will I be able to transfer to caveats over to the new PPOR?

Cheers

 

[sbe]

You'll have to speak to whoever owns the caveats. That usually means they're holding it as security.

I believe (but willing to be corrected if need be), to sell, those with caveat's need to approve transaction.

Good luck

Simon.

 

[Garry K]

In Victoria, to settle the sale of your PPOR, you will need to produce a withdrawal of the Caveat, from the lodger (owner eg the Bank) of the caveat.

The Bank may want something in return to release your PPOR as security.

In that case, if you have purchased a new PPOR, and it settles at the same time, they may just put a caveat on the new place.

If not, they may want you to lodge some cash on term deposit and take a "mortgage/guarantee" over that or reduce the IP debts.

If there is sufficient equity in just your investment properties to support the loans advanced to buy them, ie their values have increased, they may be happy just to release the caveat on your PPOR.

Geekay

 

[Queen Bee]

The Bank that has the Caveat on PPOR for IP's will be the same bank that I would be dealing with if I needed to borrow more money.

 

[Garry K]

That should make it simpler.

There are a few options for your bank.