Republic of Ireland Law
Republic of Ireland Law Questions Answered by Experts
1. It is possible for one of two co-owners of a property to transfer their share to the other co-owner without it affecting any mortgage on the property. The situation would then result whereby one co-owner would then own all the property but the two former co-owners would remain liable for the mortgage. There is nothing unlawful about this. However, be aware that it is usually a term in any mortgage that the bank be notified of any changes in ownership of the underlying property. But the bank cannot object or stop a transfer. Be aware that the consent of the bank would be necessary to remove one of the owners names from the mortgage even after a transfer.
2. There definitely would be a big issue if the property was transferred in whole or in part to another party who is not currently a co-owner. That would make the bank very unhappy!! YOu would certainly lose any tracker mortgage and might see the loan called in, I regret to say.
3. The bank will certainly speak to you about arrangements for re-working the mortgage. Some plan for restructuring is always more favourable from the bank's point of view that no plan at all. HOwever, you should discuss options with them as they will have some non-negotiable lines which you will need to find out. Generally, when you change the owners, the banks very often want a whole new arrangement and a new mortgage, as they will want to assess the creditworthiness of the new owner or co-owner. However, these parameters will only become apparent after you chat to them.
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