Second Mortgage and its Popularity Comeback

A second mortgage is a loan which is secured by mortgage to the title of a property behind another mortgage (known as the first mortgage). The second mortgage comes second to the first mortgage in priority, meaning that, in the event the mortgagor (the borrower) defaults and the property secured by the mortgage is sold, the second mortgagee will only receive payment if there are funds left over after the first mortgagee is paid. While the popularity of a second mortgage saw a decline due to the first mortgagee meeting most of a borrower’s needs, the new loan-to-value ratios has restricted the bank’s ability to lend to investors and owner-occupiers alike, resulting in a second mortgage comeba

Options for First Home Buyers

A house purchase is often the biggest asset (and debt) a person will take on during their lifetime. Rising house prices in Auckland mean that first home buyers looking for a foot on the property ladder often need to consider alternative options such as purchasing a property with a friend or asking a family member to guarantee their borrowings. Buying property with friends or family is becoming increasingly common. In this instance, two or more people are registered as tenants-in-common, either in equal or unequal shares. The advantages of purchasing in this way include the sharing of costs, including the property price and ongoing costs such as loan repayments and maintenance. Buyers thinkin

Water Easements

A dry Summer is a timely reminder to consider the importance of water easements, particularly for rural properties. An easement grants a right for the owner of one property to do something on someone else’s property. There are several types of easements including the right to convey electricity, a right of way and the right to convey and drain water from one property to another. An easement instrument records the existence and description of the easement. Once the document is created and signed, it is registered on the titles to both or either property. It is important to be clear about the terms of each easement when purchasing a property or granting an easement to a neighbouring property.

What does “vacant possession” really mean?

A vendor is required to sell a property with vacant possession unless the particulars of the tenancy are included in the agreement for sale and purchase. Vacant possession includes: Giving title to the property free from any tenancy or right of occupation; and Giving physical vacant possession. Except in the case of a fixed term tenancy, where a vendor agrees to sell a tenanted property with vacant possession, the vendor is legally required to give the tenant at least 42 days notice to vacate the premises. Therefore, vendors need to ensure that settlement occurs at least 42 days after the date on which the agreement becomes unconditional, to give sufficient notice to the tenant. In the case

Wills & Powers of Attorney

In our life time we all manage to establish something whether it be a property, a business or simply even savings, we still have interests that we would like to see protected. The easiest way to do so is to make sure you have a valid Will. Your Will is one of the most valuable legal documents you’ll create. Your Will sets out your wishes for how your affairs are to be managed after you are gone. A Will provides for the executors who are nominated by yourself to carry out wishes that you specify. These can be things such as whom you would like to provide for and the guardians of your children if anything was to happen to you and your partner. In most cases people don’t get a Will because they

So let’s talk planning your funeral...

Planning a funeral used to be a taboo subject, but let’s face it dying is a part of life and it happens to all of us at some point in time. Have you ever thought “what if?” What if I were to pass away suddenly? Would my family know what to do? Who would take the lead and organise my final farewell? Who knows all my personal details - date/place of birth, parents’, spouse’s, children’s details? Who needs to be contacted? Having recently been involved in the organising of a funeral for my dear friend’s spouse I can say it is an intense time dealing with grief, differences of opinions and personalities, and the funeral arrangements. We were fortunate, we had warning, we had the discussion

Attention Landlords – Get it Right!

Tenancies in New Zealand typically fall into two categories - residential or commercial. It is important for a landlord to understand the difference between the two. A residential tenancy refers to a tenancy where a property is being rented to live in. Residential tenancies are governed by the Residential Tenancies Act 1986 (“RTA”). The terms of a residential tenancy are ideally recorded in a Residential Tenancy Agreement signed by the landlord and tenant. In contrast, a commercial tenancy refers to a tenancy where the premises are rented to carry out business activities. A commercial tenancy is usually recorded in a Deed of Lease signed by the landlord, tenant and, in some cases, guarantors

Could Your Home be Contaminated by “P”?

This is not an unreasonable question to ask given the growing number of New Zealand homes which have tested positive for methamphetamine or “P”. The risk of a contaminated property affects property owners, buyers, sellers and tenants. If P is manufactured or used even once inside a property, this would be enough to produce a positive test result. It has been suggested that the level of toxicity and health risk posed to an occupier of the property is higher if P was manufactured on the property rather than smoked. There are several types of contamination tests available to detect the levels of P. These include at-home test kits, laboratory tests and professional test-kits. If you are consider

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