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  • Mortgages & Finance

    Exiting from Mortgage Express?

    I have not checked yet, but is there a Debenture clause with the old ME mortgages ?

    I have about 10 which come to the end of term in seven years.

    Will they allow me to remortgage one at a time or sell into my company one at a time or do I have to arrange for all ME Mortgages to be paid of at one time?

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Mortgage Express mortgages have a "right to consolidate" clause in them and MX are fairly aggressive about enforcing this.

    It means that if you sell a property, any existing equity has to be used to pay down other MX mortgages you have.  To the best of my knowledge, this does not apply to mortgaging away from MX, only if you sell.

    The best thing you can do is contact MX well in advance and discuss your position and what you are trying to do and work out a plan with them to achieve that.

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    This is a question for the lender. I have a client who recently had to redeem the entire portfolio to release the debenture in order to incorporate their portfolio (and before anyone jumps on this, it was the right decision for this client).

    I suggest you call the lender and get a position from them.

    From a tax perspective why are you choosing to incorporate one at a time. Is there not a CGT issue to consider?

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    Hi Thanks for the info

    The property I am selling to my company has not see great growth in the past 10 years if any and I mortgaged at 85% LTV when I purchased them

    So the ones I keep I may need to reduce the Mortgage Balance down to 75% LTV so i can get a deal from a lender

    CGT is not really a problem as it is so low when I sell the property into my company

    But I will have to pay Stamp duty and I am mindful that it could be classed as a linked transaction

    I am looking for around 75% for all the ones I keep and the ones I am selling to my company

    There all high yielding 7% so it still stacks up

    I am in no hurry - I have 7 years but its always good to prepare for the future !

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.