Joint mortgage ownership transfer keep tracker?

Discussion in 'Tracker mortgages - other than redress issues' started by simong, 13 Sep 2018.

  1. simong

    simong New Member

    Posts:
    1
    Hi,
    I own a property jointly with a friend on a tracker + 0.9% - he lives in it as his PPR I have not done so for years.
    AIB have finally agreed to let him take on the whole loan at market value effectively taking me off the loan and deeds.
    I have received conflicting advice from AIB as to whether I can take my element of the loan with me for my next purchase at +1% current rate.
    As there is no actual sale does it apply to my portion?

    Thanks!
     
  2. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    35,989
    So you have a mortgage of €200k between you.

    A) Your friend is getting to keep the mortgage of €200k at the tracker rate?

    B) Or are you saying that they will give him a mortgage of €100k at tracker and give you a further €100k at tracker +1%?

    I would think that A is the most likely outcome and your friend should compensate you accordingly.

    Brendan
     
  3. SCOTTPLASMA

    SCOTTPLASMA Registered User

    Posts:
    3
    Last edited by a moderator: 31 Oct 2018
    I am entering a similar scenario. My friend wants to take over the mortgage and make the property his PPR. The property is worth cirica €200000. The tracker is +.9%. The mortgage is approximately €165000. He has just asked me to sign the joint to sole paperwork but the elephant in the room is the compensation. What should I be expecting based on him keeping the tracker and the current equity.

    Thanks in Advance
     
    Last edited by a moderator: 31 Oct 2018
  4. David1234

    David1234 Frequent Poster

    Posts:
    85
    There shouldn't be any elephant in the room if you knew this person well enough to purchase a property with them. This needs to be discussed now.

    Are you happy to let your friend buy you out? Are you looking to buy a PPR or separate investment property for yourself, i.e. will you have a use for the tracker rate on your half of the mortgage? If not, just forget about the tracker. Good friends are cheaper than legal fees.

    The equity bit is (Property value - Current mortgage) / 2. At 200k valuation your half is worth €17,500.

    The tracker is obviously more complex. If you are moving your half of the mortgage I would imagine you will be paying a 1% premium on your current rate, therefore 1.9%. At 2.4% Ulster Banks 2 year fixed rate is the most competitive. The difference of .5% on €82,500 per year is €412.50.

    I would be happy with €2,500 for the half of the tracker if I was you.

    Talk to your friend, hopefully you can come to a satisfactory agreement.