I hope somebody can help me and thanks in advance for taking time to read this thread.
My mother and father purchased a property in the early mid 70's for around the 20 grand mark. Not long after there relationship broke down and she ended up on a manageable interest only mortgage to meet the repayments. The property is worth 120-150 grand now and she still has an outstanding amount of 19500. She is now 70 years old.
Three years ago the mortgage came to fruition an extension was granted on the mortgage which has recently expired. The lender is asking for full payment, or a payment plan to clear the debt, which is understandable. Obviously she does not want to have to sell the property or worse case a repossession order by the lender.
I have assets that I could cash in and pay it off, however new business investment has tightened my cash flow at this time, so a request was made for an additional year from the lender which was unfortunately declined.
I really don't understand the lenders eagerness to recall the debt considering the equity in the property is five times the debt. The lender will always receive the money back whatever route is taken. And in the mean time they are receiving an interest payment on time and has never been defaulted on. money for old rope if you like. In fact if you was privy to facts and figures then you would see that they have already recouped 29000 back on a 20000 debt.
I know equity loans are available but my mum contemplated this three years ago and I advised her against it, and gave her what she needed, in the way of financial support, lump sum, and a new car.
My position could well improve in the next 18 months and cash flow may be more readily available, my brother is waiting on quite a large PPI claim to be paid, but we need some possible other options now. I would be really grateful if you can submit some ideas or avenues we could maybe explore.
My mother and father purchased a property in the early mid 70's for around the 20 grand mark. Not long after there relationship broke down and she ended up on a manageable interest only mortgage to meet the repayments. The property is worth 120-150 grand now and she still has an outstanding amount of 19500. She is now 70 years old.
Three years ago the mortgage came to fruition an extension was granted on the mortgage which has recently expired. The lender is asking for full payment, or a payment plan to clear the debt, which is understandable. Obviously she does not want to have to sell the property or worse case a repossession order by the lender.
I have assets that I could cash in and pay it off, however new business investment has tightened my cash flow at this time, so a request was made for an additional year from the lender which was unfortunately declined.
I really don't understand the lenders eagerness to recall the debt considering the equity in the property is five times the debt. The lender will always receive the money back whatever route is taken. And in the mean time they are receiving an interest payment on time and has never been defaulted on. money for old rope if you like. In fact if you was privy to facts and figures then you would see that they have already recouped 29000 back on a 20000 debt.
I know equity loans are available but my mum contemplated this three years ago and I advised her against it, and gave her what she needed, in the way of financial support, lump sum, and a new car.
My position could well improve in the next 18 months and cash flow may be more readily available, my brother is waiting on quite a large PPI claim to be paid, but we need some possible other options now. I would be really grateful if you can submit some ideas or avenues we could maybe explore.