The wife is paying off a mortgage on a property. We would like to transfer the property into our company instead of only her name. Is this possible if the property is still in a mortgage?

The first thing to note is that you cannot transfer the property, you can only sell it. I mention this because you will have to pay the taxes and fees arising from the sale.

 

Secondly, the property cannot be sold without the consent of the mortgagor, who will normally only give that consent if the mortgage is repaid in full before the sale.

 

If you need a new mortgage then it would have to be in the company name, and that will require substantial documentation.

 

If your company has a solid trading history and it is profitable then it's certainly possible. Quite often, however, the bank will require a major shareholder to personally guarantee a corporate loan.

9 minutes ago, blackcab said:

The first thing to note is that you cannot transfer the property, you can only sell it. I mention this because you will have to pay the taxes and fees arising from the sale.

 

Secondly, the property cannot be sold without the consent of the mortgagor, who will normally only give that consent if the mortgage is repaid in full before the sale.

 

If you need a new mortgage then it would have to be in the company name, and that will require substantial documentation.

 

If your company has a solid trading history and it is profitable then it's certainly possible. Quite often, however, the bank will require a major shareholder to personally guarantee a corporate loan.

This is an excellent response. Thank you!

On 9/11/2020 at 11:33 AM, blackcab said:

The first thing to note is that you cannot transfer the property, you can only sell it. I mention this because you will have to pay the taxes and fees arising from the sale.

 

Secondly, the property cannot be sold without the consent of the mortgagor, who will normally only give that consent if the mortgage is repaid in full before the sale.

 

If you need a new mortgage then it would have to be in the company name, and that will require substantial documentation.

 

If your company has a solid trading history and it is profitable then it's certainly possible. Quite often, however, the bank will require a major shareholder to personally guarantee a corporate loan.

Good answer.

 

Just like everywhere else in the world. Talk to the bank, give them the appropriate guarantees and collateral and they will agree. I do not know why everyone thinks the rules will be significantly different in LOS.