Are there any conveyancers or legal experts out there who can tell me if a private individual can register a bond on a property as collateral for a personal loan to the owner of the property?
The normal situation is that an individual is granted a loan by a bank to purchase a property. The loan is paid off over a number of years, and eventually the bond is cancelled, after the debt is paid in full.
My question is whether the bank could be replaced by an individual, the loan would be to another individual, and the loan is secured by a bond over a paid up property (no existing bond)
If this is possible, it could be quite a flexible way of raising a loan, especially for retired persons who would not normally qualify for loans. Interest rates and other conditions could be negotiated, and it is risk free for the lender.
Not without pitfalls of course, and I realise that there are costs involved, but I am curious as to whether it is possible, and are there conveyancers who would register a bond that is not the norm?
The normal situation is that an individual is granted a loan by a bank to purchase a property. The loan is paid off over a number of years, and eventually the bond is cancelled, after the debt is paid in full.
My question is whether the bank could be replaced by an individual, the loan would be to another individual, and the loan is secured by a bond over a paid up property (no existing bond)
If this is possible, it could be quite a flexible way of raising a loan, especially for retired persons who would not normally qualify for loans. Interest rates and other conditions could be negotiated, and it is risk free for the lender.
Not without pitfalls of course, and I realise that there are costs involved, but I am curious as to whether it is possible, and are there conveyancers who would register a bond that is not the norm?