StillaMellis
Registered User
- Messages
- 19
My interest only loan has three years to run. At 67 I am too old to take out a 30 year mortgage. I have calculated that that is how long it would take to pay off the capital and pay the interest on a beautiful house I have let to tenants. The income is likely to be sustained as the house is beside a university and there is considerable demand for accommodation each year. Having had a cousin die at the age of 96 recently there is no guarantee that I will die before I am 77, 87, or even 97. Even if I do pass away I have family ready and willing to take over my assets -- and my debts. This is such a beautiful house that I do not want to part with it under any circumstances.
My solicitor suggested forming a "consortium". What on earth is that?
What are my chances of finding a number of private investors to lend me money on the assurance that they will receive a regular payment of interest and capital over the next 30 years -- and that if I fail they will receive a magnificent house in an excellent location for much less than I bought it for?
How does one find such investors? Abroad? In China?
This is such a beautiful house that I do not want to part with it under any circumstances.
Thanks for that comment on the banks, Dubrov. You have given me food for thought.
I have heard it said that on the continent mortgages that span two generations can be given and are relatively common. In my case I suppose I could ask for a 30-year mortgage on this sum 340K with all four of us signing for the loan and offering both the family home --mortgage paid off -- now worth about 500K but about 800K or more two years ago and the house in question bought for 400K but now worth only 300K or less and attach a copy of my will! Having those who will interit the asset when I pass on sign for the loan should enable the bank to overlook my age.
That would leave us exactly as we are now and if I outlived my own life expectancy I could find myself in my old age whooping it up in VEGAS followed by a prayerful pilgrimage to Lough Derg. Meanwhile the recession will have ended and house prices will have begun a cautious increase again and whether we keep the properties or sell them the options will be far more favourable than at present.
Thanks everyone for allowing me to sound out the possibilities here. It has been a help.
I am going to wait one year more before alerting my bank to my difficulty. By that time I will have paid off the mortgage on the home and will be in a position to offer them the title deeds to that house as well.
Tread cautiously about putting your home up as security. The 'small print' warning that this puts your home at risk is very real, as many property investors are currently finding. Do you really, really want to put your own family home (and your own retirement) on the line for this investment?I have heard it said that on the continent mortgages that span two generations can be given and are relatively common. In my case I suppose I could ask for a 30-year mortgage on this sum 340K with all four of us signing for the loan and offering both the family home --mortgage paid off -- now worth about 500K but about 800K or more two years ago and the house in question bought for 400K but now worth only 300K or less and attach a copy of my will! Having those who will interit the asset when I pass on sign for the loan should enable the bank to overlook my age.
Again, Complainer, you are causing me to stop and ponder. Thanks for your comment. I am confident that we can meet whatever monthly payments are required and I suppose I am hoping that property values will not go down any further but start up again soon or at least stabilise. Time will tell!
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?