Hi,
I was hoping someone could please help me.
Bought an apartment with my parents in 2006 (joint and severally liable). It's rented out. We pay the mortgage shortfall every month (me and my parents) and I am renting a house myself as I am now married and have 2 children (apartment wasn't suitable to live in with 2 children). My parents loaned me €65,000 a number of years ago to complete my studies etc. and pay a good few loans so my proposal is a way of metaphorically paying them back, helping me get a family home and helping my parents to get back on their feet. My parents are in financial trouble. I would like to sell the apartment and take the loan with me (the full loan of €90k), consolidate it into a negative equity trade-up loan with my husband and buy a house for ourselves. My parents are agreeable to this and the scenario, if it worked out, would be a great relief to me, my husband and my parents. My name and my parents' names are on the mortgage. My husband also owns an apartment (also bought before we met) and he will sell that soon and won't be in negative equity..so that's irrelevant really in all of this. He won't make any profit on it and overall it will have been loss-making for him but at least he will be rid of it.
My/my parents apt:
Paid for property in 2006: €420,000
Mortgage left on property: €375,000
Value of property: €285,000
Negative Equity: €90,000
I contribute €500 per month to apartment mortgage shortfall
My parents contribute €500 per month to apartment mortgage shortfall
Apartment mortgage has never gone into arrears.
My salary: €60,000
Husband salary: €110,000
Savings: €50,000 (€2k per month)
Current Rent: €900 per month
Childcare: €900 per month
We want to buy a house for €450,000 and bring the €90,000 with us after sale of apartment (we will still have a €90,000 loan after apartment is sold). We do not want to use our €50,000 savings to pay towards the €90,000 shortfall as we need this as a deposit. Bank of Ireland are doing a negative equity trade-up mortgage where as a second time buyer we will qualify for only 10% deposit, not 20% thankfully. Apartment mortgage is with AIB though.
My query is this: can I get my parents' names off the AIB mortgage, sell the apartment and take the full shortfall of €90k and bring it with me to a BOI loan that my husband and I can take out to buy a family home. Basically leaving my parents debt free and enabling us to purchase a family home. Having my parents contributing in some way to this €90k is off the table and not a factor in this.
Keeping the apartment and buying a family home is also not affordable for us. The apartment has to go. So effectively, I buy a family home with my husband for €450,000 but have a loan for €540,000 which includes the negative equity from the apartment. Is this possible?
Thanks so much for your help.
I was hoping someone could please help me.
Bought an apartment with my parents in 2006 (joint and severally liable). It's rented out. We pay the mortgage shortfall every month (me and my parents) and I am renting a house myself as I am now married and have 2 children (apartment wasn't suitable to live in with 2 children). My parents loaned me €65,000 a number of years ago to complete my studies etc. and pay a good few loans so my proposal is a way of metaphorically paying them back, helping me get a family home and helping my parents to get back on their feet. My parents are in financial trouble. I would like to sell the apartment and take the loan with me (the full loan of €90k), consolidate it into a negative equity trade-up loan with my husband and buy a house for ourselves. My parents are agreeable to this and the scenario, if it worked out, would be a great relief to me, my husband and my parents. My name and my parents' names are on the mortgage. My husband also owns an apartment (also bought before we met) and he will sell that soon and won't be in negative equity..so that's irrelevant really in all of this. He won't make any profit on it and overall it will have been loss-making for him but at least he will be rid of it.
My/my parents apt:
Paid for property in 2006: €420,000
Mortgage left on property: €375,000
Value of property: €285,000
Negative Equity: €90,000
I contribute €500 per month to apartment mortgage shortfall
My parents contribute €500 per month to apartment mortgage shortfall
Apartment mortgage has never gone into arrears.
My salary: €60,000
Husband salary: €110,000
Savings: €50,000 (€2k per month)
Current Rent: €900 per month
Childcare: €900 per month
We want to buy a house for €450,000 and bring the €90,000 with us after sale of apartment (we will still have a €90,000 loan after apartment is sold). We do not want to use our €50,000 savings to pay towards the €90,000 shortfall as we need this as a deposit. Bank of Ireland are doing a negative equity trade-up mortgage where as a second time buyer we will qualify for only 10% deposit, not 20% thankfully. Apartment mortgage is with AIB though.
My query is this: can I get my parents' names off the AIB mortgage, sell the apartment and take the full shortfall of €90k and bring it with me to a BOI loan that my husband and I can take out to buy a family home. Basically leaving my parents debt free and enabling us to purchase a family home. Having my parents contributing in some way to this €90k is off the table and not a factor in this.
Keeping the apartment and buying a family home is also not affordable for us. The apartment has to go. So effectively, I buy a family home with my husband for €450,000 but have a loan for €540,000 which includes the negative equity from the apartment. Is this possible?
Thanks so much for your help.
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