Loan on Foreign Property, partnership breakup

This is an unusual situation...
Property (apartment in Spain) CMV €120k
Loan with bank in Ireland €360k currently on interest only with small capital repayment
3 equal Partners
1 partner unable to make repayments
Other 2 partners have agreed to take over loan on receipt of small lump sum from struggling partner (circa €40k) which will be paid off the loan
Bank will re-structure loan in two other partners names and remove struggling partner from loan on receipt of small lump sum but want security/ charge on the property in spain.
Bank is estimating €10k to cover change of title deeds and mortgage charge.
Is there any other way to reduce the cost of this additional €10k getting added to a loan on a property which is already in large negative equity?
Thanks

Crazy request fro the bank. I have never come across a situation where a Spanish property was given as security for a loan from an Irish Bank in such circumstances.. Is the loan currently unsecured? Why are 2 partners agreeing to let a 3rd fully liable partner "off the hook" on a 360k loan for a 40k repayment? If things go wrong he/she will be off the hook and the other 2 parties will be liable for the full 360k. Why not just accept the 40k and put it aside to supplement repayments until they run out. At that stage you may need to re-negotiate with the bank.
Alternatively, if you are satisfied to free the 3rd partner for 40K tell the bank that you will co-operate in putting a charge in place but will not/cannot fund it.
Did you mean user name to be "InDept" or "InDebt"? can you both comfortably meet the repayments on the 360k loan? If not you should be looking at an insolvency solution. This is apparently an unsecured loan!

The loan has security through another property but bank want additional security. Cleaner exercise for all parties involved and struggling partner is facing PI. Agreement with bank was that the two partners would put the €40k on deposit and use this to top up repayments for next few years to give the property a chance of recovering some value. The charge over the property forms part of the new loan offer from the bank. Other partners can make repayments on re-structured loan but trying to avoid an additional €10k.

But what are you getting from the bank in return? I'm assuming 3rd partner is ponying up the 40k as a goodwill gesture to the other 2. If he is heading towards insolvency, there is why would you want him off the loan. Insolvency would just exclude the loan and negative equity on the Spanish property. Is he a co-owner of property in Spain and have you some concerns about this? If so, you could just change the ownership on the property with no need to get Bank involved. I still don't see what the bank are giving you in return for the extra security!

yes its a goodwill gesture. Partnership was part of a business also where the same partner is no longer involved but other two are. The spanish property is the last thing the partners have together and would be a clean break for everyone involved. Bank are giving nothing other than re-structuring the loan into two names under a new loan offer / agreement. The questions is not to do with partners or circumstances but is there any way a solution could be offered to the bank to avoid the additional €10k charges associated with security?

Do you have an opportunity here to negotiate away the debt? You've not mentioned the existing security and what it's worth, but regardless, you have an opportunity here to raise €160k. Can you not try and offer them the €160k to write off the entire debt?

Ball is now in your Court. In my view you would be better off leaving the current agreement stand. If 3rd partner is availing of insolvency he will be off the hook for the loan anyway. You are being asked for a lot in return for nothing from the bank. You may need this negotiating play later in the deal, if things go wrong. But to be fair this was not your question!
There is no direct answer as such. If you are determined to comply with the banks request you can either agree to pay the cost of the security or ask the bank to do this. Decision is yours!

thedaddyman said:

Do you have an opportunity here to negotiate away the debt? You've not mentioned the existing security and what it's worth, but regardless, you have an opportunity here to raise €160k. Can you not try and offer them the €160k to write off the entire debt?

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no movement with bank on settlement. they are sticking to their guns regarding payment in full.

Bank will not settle where ability to pay is evident.