OK, so two brothers buy land valued at €2.4m with a variable 100% interest-only loan in 2005, currently there's 6 years to go on the loan. The land is currently valued at €400k and brother no. 1 does not have the means to develop the land. Everything was set to to be a 50:50 deal between the brothers and the loan is joint and several. The financial status of brother no. 2 is unknown (this is a hypothetical question posed) but can be considered to be consistent with a chosen plan for the first brother.
What options are open to said first brother? He has the assets available to swallow a land sale and full loan repayment but it would hurt. The loan is at 4.75% so is hurting his cashflow as long as he's carrying the debt.
What options are open to said first brother? He has the assets available to swallow a land sale and full loan repayment but it would hurt. The loan is at 4.75% so is hurting his cashflow as long as he's carrying the debt.