BOI refusing a sale until 97k paid off other BTL

[hollybrook]

Eight years ago I went on the mortgage, (tracker) (not on the deeds) with my daughter in an investment property for 200000 Euro (now valued less than 100000 Euro) and put up an investment property as collateral.
I recently sold that property and wished to transfer the lean from that to my home (which is valued at three times the value of the one I was selling There are no loans on either property), however BOI refused to release the original property without repaying 97000 of the outstanding balance on my daughters property. The reason I wanted to sell was to help my youngest son to buy a house and contribute to wedding costs along with using the balance as savings.
My solicitor has got the deeds of the house Im selling (not sure if that makes any difference to my situation)
My local bank are understanding and helpful but I cannot get either a reference or name for the underwriter who is dealing with my case
Your guidance and advice would be greatly appreciated as I am now in a situation of complete panic as the purchaser is pressing for a closing date and purchasers are hard to come by in Limerick.

 

[44brendan]

My local bank are understanding and helpful but I cannot get either a reference or name for the underwriter who is dealing with my case

Nor will you. Underwriters are not generally available to speak to clients. You need to deal directly with your branch contact person. I'm afraid that I don't really understand your problem with the bank response. You went as guarantor for your daughters loan and put up an additional property as additional collateral. The value of your daughters property has reduced and therefore the bank are fully reliant on the security of both properties. Why would you expect the bank to release any security held given the above position? Who has the deeds is not relevant as the property cannot be sold without release of the bank charge!

 

[Brendan Burgess]

I find it hard to understand the issue as well.

I recently sold that property

Did you ask the bank's permission before you sold the property? Did the solicitor allow you to exchange contracts without permission from the bank?

When you say you have "sold" it, what do you mean? You have agreed to sell it - I presume you have not exchanged contracts.

How much will you get from the sale? Why don't you pay down the mortgage?

It seems perfectly reasonable for them to ask for the mortgage to be paid off in full before releasing the security.
So they just want €97k paid off, that is decent enough of them.

It's almost impossible for a lender to repossess a family home, so they are not interested in having it as security, even if it is more valuable.

Have you considered selling your family home to help your son buy a house and pay for the wedding? If it's not given as security, you will be able to do so.