Restructure Ideas

Discussion in 'Loans & Mortgage Brokers' started by Rentforlife, 13th Nov, 2020.

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  1. Rentforlife

    Rentforlife Active Member

    Joined:
    22nd May, 2020
    Posts:
    33
    Location:
    Perth
    IP1 : 150k loan, 250k valuation
    IP2 : 390k loan, 450k val
    ^(Cross-collateralised using a banker)^

    IP3: 390k loan, 450k val

    I now know cross-collateralisation isn't ideal and wish i hadn't however wondering when/what the best way forward would be if wanting to keep building portfolio.

    Should I attempt to ucnross now, uncross when purchasing next IP or keep going and uncross it once accumulation is complete?

    Whats the complications of selling when loans are cross-collateralised?
    Any insights appreciated!
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    uncross and extend loan terms back to 30 years.
    You cannot sell when loans are crossed as mortgages will need to be discharged meaning uncrossing is needed.