Landlords often end up facing financial problems like their tenants. This may be due to an off-budget project or expenses that have not been controlled. However, a request for a repurchase of loan for the owners is a solution presented to them. Because they have real estate that can be collateral, the chances of their claims being accepted are high. This is therefore an adequate solution to their problems.
When to use a buy-back loan owner?
Although an individual has already repaid their loan for the purchase or construction of their home, they may still be in debt or over-indebted because of their other monthly expenses, including the repayment of their property. other loans.
It may also be that for various reasons, such as holiday plans or an intention to do development work, a new loan is essential. In this case, he can call on a loanor to buy back his loans.
This loan restructuring will be a major asset, as this will allow him to consider new projects. However, his property will be considered a deposit. Since he owns the property, the percentage of his loan can be high. Moreover, it is calculated according to the value of the mortgaged property.
Opting for mortgage repurchase
A diagnosis will first be made on the premises pledged. Doing so is essential because it determines its value and subsequently defines the amount allocated to the owner. For example, if the estimate of the residence is equal to 100 000 euros, 70% of this sum is granted to the applicant, that is to say 70 000 euros.
But, it must be noted that the proportion is variable according to the lessor. In general, it runs from 50% to 100%. If the purpose of the mortgage purchase is to make another real estate investment, it is much more likely to be granted.
Indeed, the rent of the new apartment can be used to pay the wages, if it is intended for rental of course. In addition, a repayment period of up to 40 years may be granted to the borrower.
On the other hand, if the redemption is for a project other than this one, the time for repayment is generally 20 years maximum. This may be a car purchase, an investment in a company, a trip, the realization of some new developments in his home, and many more.
Good reasons to choose the buyback loan owners
The repayment period may be reduced by 30 to 60% for a property owner wishing to buy a loan. In addition, he may be eligible for another loan if he wishes to carry out other projects that are not part of his monthly budgets.
The mortgaged property is a guarantee for the loanor, so the negotiation between the two parties is more flexible compared to that made with a tenant.