Legal Question in Real Estate Law in New Zealand (Aotearoa)
Hi,
My wife and I are considering employment opportunities in Australia, and living there permanently.
However we currently own a home in Wainuiomata, and therefore have our mortgage to take into consideration.
What we are seeking advice on are the following concerns:
We originally bought the property in 2008 for $250000.00, and the current balance owing on the mortgage is $240000.00
Recently we had a valuation completed on the property and the current valuation is at $230000.00
After consulting with a family friend who is in real estate, we were advised that in the current property market, we would be lucky to get $210000.00 for a sale.
This then leaves us with a deficit of $30000.00. What we would like to know is if we are legally able to sell the property for $210000.00 (as example), and then arrange refinance of the remaining balance with the Mortgage company that we currently have the mortgage with.
If you would be able to give us some advice in regards to the above, as to what steps we can take.....it will be much appreciated, for we both have solid offers of employment in Melbourne, and the employers are awaiting to hear from us.
Really appreaciate some help on sorting this out
Glenn
1 Answer from Attorneys
You cannot sell the property unless you can get the finance company/bank to agree to lift the mortgage. They will not do that unless they have certainty that they will be repaid in full or the other finance for the remaining $30,000 is in place already.
You must give them some security for the $30,000, such as a car or other property. If you do not have security that they will accept then you cannot sell the house. You also need to factor in agent's commission on the sale, so that the sum you need to get refinanced may be higher than $30,000.
Perhaps you should rent it out, move to Melbourne and hold the property until the market improves. This is hardly the best time to sell.
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