Posted on: 20th Jan, 2009 11:56 am
i am trying to refinance a property that consists of a house, a converted barn that contains an apartment and office space, and several acres of land. a relative has a life estate for the barn. it would be very difficult to split up the property since the house and barn share electric and well.
the bank that currently holds the current mortgage just turned down my refinance application because of the partial life estate, and possibly the value of the property. i think they excluded the value of the barn when they appraised the property.
questions...
-- is it possible to refinance with a life estate?
-- if not, is there a sensible and ethical alternative to the life estate in order to refinance? (i am happy with the relative living there, and want to ensure their fair treatment) maybe a long term lease?
the bank that currently holds the current mortgage just turned down my refinance application because of the partial life estate, and possibly the value of the property. i think they excluded the value of the barn when they appraised the property.
questions...
-- is it possible to refinance with a life estate?
-- if not, is there a sensible and ethical alternative to the life estate in order to refinance? (i am happy with the relative living there, and want to ensure their fair treatment) maybe a long term lease?
Hi jstat!
Welcome to forums!
It will be difficult for you to refinance the property as the relative has a life estate over it. Though your present lender has refused it, I would suggest you to speak to some other lenders of your area and check if they are ready to refinance the property. You can also speak to the lenders of this community and get a no obligation free mortgage consultation from them. This will help you to know the rates and terms you may expect to get. Lease may be a option for you but it will be totally the lender's discretion whether you will get a loan or not.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
It will be difficult for you to refinance the property as the relative has a life estate over it. Though your present lender has refused it, I would suggest you to speak to some other lenders of your area and check if they are ready to refinance the property. You can also speak to the lenders of this community and get a no obligation free mortgage consultation from them. This will help you to know the rates and terms you may expect to get. Lease may be a option for you but it will be totally the lender's discretion whether you will get a loan or not.
Feel free to ask if you have further queries.
Sussane