First time using AAM, but a great admirer of the website.
My parents took out a €500k interest only tracker mortgage (ECB + 0.5%) from Danske back in 2007 to renovate a retail unit & 3 apartments. This loan was secured on their principal private residence & matures in early 2022. At that date they will still owe approximately 50% of the mortgage, so will have a refinancing requirement of c€250k
This would be OK, given the rental income from the building (€65k p.a), but they will be 74in early 2022 & obviously banks are reluctant / won’t lend to people of this age.
They have a combined income of €120k per annum from this building, pensions and land & house lettings . They could sell a field to pay back this debt but ideally they want to avoid that.I have asked my bank to see if they could just put the €250k required on to my mortgage and while they haven’t said no yet , I don’t think they are overly keen on the idea. If I took this debt on to my current mortgage I’d have a LTV of 50% / LTI of 2.5x, I would also have €100k I could give / lend them , but then there could be negative tax implications of doing that also, so I’m just trying to find the best overall solution here to this mess.
Would appreciate any advice to help them with this problem.
My parents took out a €500k interest only tracker mortgage (ECB + 0.5%) from Danske back in 2007 to renovate a retail unit & 3 apartments. This loan was secured on their principal private residence & matures in early 2022. At that date they will still owe approximately 50% of the mortgage, so will have a refinancing requirement of c€250k
This would be OK, given the rental income from the building (€65k p.a), but they will be 74in early 2022 & obviously banks are reluctant / won’t lend to people of this age.
They have a combined income of €120k per annum from this building, pensions and land & house lettings . They could sell a field to pay back this debt but ideally they want to avoid that.I have asked my bank to see if they could just put the €250k required on to my mortgage and while they haven’t said no yet , I don’t think they are overly keen on the idea. If I took this debt on to my current mortgage I’d have a LTV of 50% / LTI of 2.5x, I would also have €100k I could give / lend them , but then there could be negative tax implications of doing that also, so I’m just trying to find the best overall solution here to this mess.
Would appreciate any advice to help them with this problem.