Deeds being held although mortgage paid off

Update-

I spoke with my financial institution again recently was informed that if I did wish to sell the property that has no mortgage my financial institution would request a letter that the proceeds of the sale would be used by me to clear the mortgage on my principal private residence.

I indicated that I would not being doing this as I had a tracker mortgage and would not be paying the mortgage off early.

It was also suggested to me that to allow the security to be released would I be able to make some additional payments off my tracker mortgage and that the financial institution may look favourably on my request in this event.

OP, I'm in a similar circumstance. In 2009, as the commercial market was planking, they requested additional security and stupidly I gave them another property.

Now as the commercial property market has recovered and there is a large amount of equity involved in the values, they refuse to release the second property.

The Bank I'm involved with is KBC and the problem I have is my solicitor is the same as theirs. Tomorrow I'm going to ask them to release the charge on the additional security or else they will be liable for the legal fees I will be subjected to.

10amwalker said:

I spoke with my financial institution again recently was informed that if I did wish to sell the property that has no mortgage my financial institution would request a letter that the proceeds of the sale would be used by me to clear the mortgage on my principal private residence.

I indicated that I would not being doing this as I had a tracker mortgage and would not be paying the mortgage off early.

It was also suggested to me that to allow the security to be released would I be able to make some additional payments off my tracker mortgage and that the financial institution may look favourably on my request in this event.

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This is extraordinary, and such bully boy tactics to get you off your tracker.

What is the value of your home and what is the mortgage. I want to see the banks exposure.

Update: 28 December 2013
The financial institution has now agreed to release the security documents to my solicitor. I am pleased that I pushed the issue.. At least I now will have control over the property…
Thanks for the encouragement AAM.

10am walker

One further battle with same institution ongoing…

cremeegg said:

The bottom line here is that the mortgage on the investment property has not been paid off.

The mortgage you consider to be for your home is in fact a mortgage on both the home and the investment property.

When you borrowed money for the investment property you gave the bank a mortgage over your home.

Your solicitor should have advised you of this at the time.

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at last an advocate for the banks,its what this country needs so much,to defend the indefensible!

Pat

10amwalker said:

Cremeeg I am missing something in your post.
Neither the investment property mortgage nor my PPR mortgage notes two properties on the agreement.

In other words the investment mortgage does not specify that my PPR is security for the investment and vis versa.

10amwalker

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Congratulations on getting the deeds back.

Perhaps I misunderstood, but it did appear, to me at least, from your post that when you got your home loan from the bank you gave them security over the investment property as well

"Under security in the T&c’s it states;

(d) Any other security now or in the future held by us for your liabilities in general will be security for any liabilities under this agreement."

If this is applicable I think you did well to get the deeds back.

In general I always suggest that it is unwise to have a home loan from the same institution as any other borrowings.

Cremeegg,

Yes, I think you did misunderstand my posting !!!

I have an investment property and the security was the investment property itself however when I paid this mortgage off the FI decided, initially, that I could not have the deeds back as I had a separate home loan (tracker) with them.

I would never give my home as a security for an investment property.

10amwalker said:

I would never give my home as a security for an investment property.

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Hi 10amwalker, good you got it sorted.

I would never have put my home up as security for an investment property either, but I now have to accept that because of a clause in the T&c's, I did.

Can you confirm if the following or similar, is in your T&c’s;

(d) Any other security now or in the future held by us for your liabilities in general will be security for any liabilities under this agreement.

I am in a similar position to you; it would be helpful to know.

Thanks.

10am Walker;

Your quote ,Banks {policy to hold other security}
Policy is not the same as they being legally entitled to hold other security.

You have your current mortgage in good standing and good equity.
....................................................................................
Where you clearly advised of this (holding of all security) on taking out 2nd Mortgage?
(in fairness you should have been)

If not re-reapproach the Bank , voice your concern that they are being a bit harsh on you and re-request the Deeds. If they re-refuse , ask for the refusal in writing then ask for their internal Complaints section. Complain again via their internal Complaints section. If still refused ask them to confirm their refusal as a (final response).

You can then go via Financial Services Ombudsman,

Bit of a slow process but it beats doing nothing.
The hardest thing is to keep your (cool) and to accept that Banks are far from benevolent societies,or even have a system to cope with sensible requests .