Taking over someone elses mortgage?

bubbletrouble

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Hello guys, long term reader of the site. Friend was a builder. Fell on hard times. He has a house down in Laois that is to builders finish. Insolvency practitioners have gotten the bank to write off 50,000 of the debt and he has a mortgage left of 100,000 which he hasn't paid a cent. Will never get to finish the house and he has asked me if I wanted to take over the 100,000 mortgage, sign the house into my name and complete the house with my own funds. I have 50,000 saved myself and I'm 34 years of age.

So I'm wondering the following ->
1. Is it possible for me to take over his mortgage? Do I have to stay with this persons bank?
2. Can the bank change this 100k figure considering someone else with purchasing power would take over the bad debt?
3. Should I meet with the insolvency people to confirm it's 100k?
4. Who is best fitted to take a look at the house and get detailed costings for completion? An engineer/surveyor? Will I even need an architect as it's very much a builders finish for the most part.
5. Is there anything I'm missing? Obviously I'll have to get a solicitor too to work out all the paperwork.
6. If I need more money to complete the build, would I have to remortgage?

The house is about 2,500 sq foot.
Insulation, block work, roofing, gutters, esb connection, alarm wiring, windows, doors, all done.
Kitchen fitted.
Underfloor heating done.
Septic tank needs to be done.
Front and back door entrance and landscaping around the site needs to be done.
Flooring upstairs and stairs needs to be done.
Lick of paint outside.
Plumbing and electrics about 90% there + any extras.
Carpets/Mats/Blinds/Curtains/appliances/furniture etc.

I would appreciate any help on this. I live down in Laois and this would be a fantastic opportunity for me to live locally again. I'm also a FTB.

Thanks a lot for taking the time to read this situation!
 
You cannot take over someone else's mortgage - it would be a completely separate mortgage.

You can buy the house just like any other house.

So you get approval in principle from your lender.

You then identify the house. You will have to work out how much it will cost to finish. The lender will not give you a mortgage unless you have enough between the loan and your own cash to finish it.

Brendan
 
You can't take over someone else's mortgage.
You raise your own mortgage for the selling price.
 
1. Is it possible for me to take over his mortgage?

No

He will need to clear the mortgage before he can sell, he can do this from the sale price.


You can then buy the property for any price he will sell it to you for.

You will have to find the finance yourself.

You cannot take over his mortgage.
 
Thanks guys - It's just the way he phrased it to me it sounded like I had to get it signed over to my name first but I knew that didn't sound right...

So I'll need to go to any lender first and secure approval with detailed costings of the finish. Get sale sorted and then tender to builders etc.
 
He'll need permission from the bank to allow him to sell the house for 100k. Don't waste your time if that's not likely to be given.

In a oracpract level, cost everything, especially if septic tank isn't there - could cost a bit depending on the required percolation, etc.

You need to check that he's actually built what he had planning permission for, and you don't need further permission to complete it. Financial contributions paid, etc.
 
There's actually no legal reason a mortgage can't be assigned. It's done in the US all the time.

However, it's unknown here.
 
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