Markjbloggs
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There is an equitable mortgage which is simply by depositing your title deeds/land certificate with the lender. But the land certificate is in the process of being abolished, so this avenue won't be open to most of the country any more.
Also bear in mind that most mortgages have a clause prohibiting you from securing any further loan on the property without the banks permission. If you have a mortgage, and secure a loan on property without permission you have breached the terms of the mortgage, and the bank is entitled to call the entire loan in.
Apart from the option mentioned below which looks like it's about to disappear I would imagine that most or all lenders would want some legal investigation of the title to be carried out before advancing a loan secured against the property as collateral.Is re-mortgaging a property the only way through which a person can access the equity in their home? Are there other mechanisms through which a loan can be obtained using the equity as colateral, such as a contract that forces the property owner to sell if he/she defaults?
An interest only mortgage?Also, is is possible to get a home equity loan with repayment based on future sale of the property, if the property owner is not in a position to service the repayments before the sale?
Thanks j26,
the house in question is mortgage free and has built up a considerable amount of equity during the last 10 years. The title deeds are currently residing with a solicitor - if it were possible, would the processbe as simple as transferring them from solicitor to lender?
I wish.... If they say no, then the interest free mortgage may be an option until then house is sold.
duly edited ...I wish
Guys,
many thanks for the helpful advice. So just to test undestanding here - the person involved goes to the local friendly bank manager, asks them for an equitable mortgage (in this case, approx 3-4 % of the house equity), manager says "yes, give us the deeds and we'll do a title search, but you will need title insurance", then Bobs your Aunties' husband. If they say no, then the interest only (!!) mortgage may be an option until then house is sold.
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