My sister and I purchased an investment property in 2004 for €127,000 and secured a tracker mortgage with Ulster of €114,000 . We were offered 4 years interest only and took it. In 2007, on the basis of a then valuation of €225,000 we topped up the mortgage by €62,000 and invested / loaned the money in a family business. In 2008, we started paying principal and interest on the full mortgage of €176,000. The property is rented since then and will be for the future for €560 per month. The family investment / loan is contributing €330 per month so the monthly payment is covered.
For personal reasons, my sister and I no longer wish to own the property together but I would like to own it and use it as a holiday home.
The figures are:-
Mortgage Balance now - €123,000
Property Value now €115,000
Equity NIL
Mortgage Payment €890 per month
Term Remaining 12 years
If we sell it now, there will be a small loss. Would the best option be for me to take over the mortgage, and pay the personal amount each month i.e 65% of the mortgage as the other 35% of the 2008 full mortgage was invested.
Am I right in thinking the investment / loan should continue to pay the 35% each month until the mortgage is finished?
If this is the case, then taking out the investment, there is equity in the property and my sister will be due a lump sum?
For personal reasons, my sister and I no longer wish to own the property together but I would like to own it and use it as a holiday home.
The figures are:-
Mortgage Balance now - €123,000
Property Value now €115,000
Equity NIL
Mortgage Payment €890 per month
Term Remaining 12 years
If we sell it now, there will be a small loss. Would the best option be for me to take over the mortgage, and pay the personal amount each month i.e 65% of the mortgage as the other 35% of the 2008 full mortgage was invested.
Am I right in thinking the investment / loan should continue to pay the 35% each month until the mortgage is finished?
If this is the case, then taking out the investment, there is equity in the property and my sister will be due a lump sum?
Last edited: