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Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you.
What is the mortgage on the property?
There is no mortgate
Hi, Thank you. ***** understand it would want to buy the property from the Business - what exactly is the brick wall you face? Is that you cannot get a mortgage?
The problem we have come across is that my partner who owns 50% of the property will be buying off the partnership and this is where we have the problem.
Hi, Thank you. Are the bank refusing to lend because of this?
Yes in a word.
Hi, Thank you. Why do you need a mortgage at all? Can the partnership not effectively lend you the money so you repay the partnership and effectively "deferring payment" of the purchase price.
In return your husband could waive his share of the profit?
This would effectively be a paper transaction, the partnership would have a charge over the property until you sell or repay the "loan" so to speak.
My partner and myself are wanting to purchase it as an investment and the business who is not always flush with money require the income from the purchase of the first property to finance the renovation of the other two properties.
Hi, Thank you. Do they require the whole £170k immediately?
Yes they would.
Ok thank you. What have the bank said is the problem - do they not like the fact that your husband is going to profit from the sale or do they have problem with the valuation?
The main problem is my partner buying it off the joint business.
Hi Alec, I hope you able to reply back to me when you get a moment. My partner and I are just hitting our heads against a brick wall as mortgage lenders are not prepared to loan us money. Obviously I am aware there will be capital gains tax involved with the profit from the sale. Please help. Thanks,