Re-mortgage question

[Bob the slob]

I inherited a house, and I want to remortgage it for approx half its value. however the will also states that my brother has a right to residency there while he is still alive, he has his own house though but it is still on the will.

Will the bank allow me to remortgage it? Or is it possible to do this while there is a right to residency on it?

 

[PM1234]

A Right of Residence means this is noted on the title deeds. In order to remortgage the lender will require him to sign a consent waiving his rights. Essentially this means that should you fail to make your repayments and the bank has to repossess, he cannot object on the grounds that he has rights to the house. They will also insist that he receives independent legal advice so he is fully aware of what he is signing.

If he agrees, it should not cause you any problem re-mortgaging.

 

[Bob the slob]

Thanks. Is there any other way around it or does he have to sign? Its only a remortgage for a year or two, then I plan to pay it off.

 

[Sarah W]

It doesn't matter how long you intend to have the mortgage on the property - the lenders right to the property must rank before anyone else's so your brother would have to give up his right of residence (or go jointly on the mortgage).

Sarah

www.rea.ie