Interest-only investment mortgage due to expire next year

[Bronte]

"Handing back the keys" doesn't make any outstanding debts disappear. If/when the lender moves to collect this they're not really "pouncing" in my opinion. The borrower will be well aware and informed that they still have an outstanding debt by the time that this happens.

I've a lot of sympathy for people who were given stupid money by banks and I've zero sympathy for banks in such scenarios - especially after what we witnessed during the Celtic Tiger. At the same time I don't agree with people doing stupid borrowing and I agree that people should pay back their debts. (this is a general comment and it's not about the OP)

In relation to this issue, there are going to be a lot of problem cases now as people who came to 'arrangements' after the bust and their 'deals' come to an end (warehousing, interest only etc) then we're also going to be seeing the fallout of 'deals' that have mortgage payments ending when people are 70 etc.

 

[Brendan Burgess]

The €150k could easily be statute barred.

That is why it is important to get professional advice. It might be statute barred or it might not.

 

[gk_033]

wai

I think the suggestions i am getting are to sell the property.

Our investment property is valued at 330k with 230 k mortgage balance; so approx 100k equity but with taxes/charges probably will only get closer to half of it.

I think I am going to bite the bullet... give my savings of 50K plus 50-60k as deposit from the sale for a small apartment. But as I cannot give all that cash in one go... ( more tax implications) i will need to find a way to save on tax.. probably get few family members to gift money... will take few months or bit longer.

All above depends on Pepper not coming g after to look for the 150k..but that's a risk I need to take.

For now I will help with some rent amount and get a very small rental property so they can move out.

Thanks all.

 

[Bronte]

All above depends on Pepper not coming g after to look for the 150k..but that's a risk I need to take.

You can't be doing that. First you need to find out if the 150K is statute barred. If it's not you are better off negotiating with Pepper while you are in debt and without telling them you have the 50K. You keep the 50K in your back pocket to help with the negotations. Maybe Pepper will write down the 150K for 100K. In a negotiation I did for a Parent/sibling they financial institution opened with writing off interest, you don't know how hard or soft Pepper might be. They want money, but they also want messy files closed. The more you owe, the more likely they will settle for less.

How much did you purchase the investment for and in which year?

 

[ClubMan]

I will need to find a way to save on tax.. probably get few family members to gift money

Not really sure what you're getting at here but if it's gift splitting then that could have tax implications.

How do you calculate CAT?

This page describes how to calculate CAT.

www.revenue.ie

Gift splitting​

If a gift is passed on to someone in a different group within three years of when it was received it is called gift splitting. Gift splitting affects the threshold used.

I agree with @Brendan Burgess - given the complexity of your situation and history of getting into sticky financial situations, you almost certainly need independent professional advice. Your numbers are various stages seem incorrect or confusing so you really need someone to look at the overall situation and full facts objectively to sanity check ideas that you're coming up with and give you guidance on a suitable way to proceed.

 

[Fortune]

"Handing back the keys" doesn't make any outstanding debts disappear.

Yet another American notion that people have. The only non recourse mortgages I've heard of here were for pensions buying property, and I don't think any bank does that lending any more.

 

[Premos]

I think I am going to bite the bullet... give my savings of 50K plus 50-60k as deposit from the sale for a small apartment

I would try to sort your own financial situation first. Your child is probably young enough as he has just finished university. He has a job and potential to earn more in the coming years. He probably doesn't need to buy immediately.