In Loanapp, all property assets need to have 'ownership' entered as part of the required data entry. The Loanapp interface is configured to make this detail easy by automatically listing all the Applicants in the application to apportion ownership to.
This automated listing of applicants can become a problem when you have a property asset in the application that is partially owned by someone who is not an applicant. This is because the Loanapp configuration does not allow you to add an owner who is not an applicant to the application. Where you have an application where:
one of the property asset owners is not party to the application (E.g., Siblings who jointly own a property asset and one of the siblings is not an applicant); and
the property asset is not being used as security for the loan.
You need to add the property asset in with a property value (and rental income) that is equal to the value that your applicants 'own'.
Eg if you have a property that is worth $1,000,000 and the ownership is:
your applicant 50%
a person not party to your application (eg a sibling) 50%
then you should enter the property asset into Loanapp with a value of $500,000 and ownership of 100% to your applicant. (ie do not include the value/ownership of the sibling).
If this property is an investment property earning $5,000 per month rent, then you should enter the rent as $2,500 per month against the property.
So for the $1,000,000 property asset, where 50% is owned by someone who is not a party to the application, you would enter:
What if there is an existing mortgage on this Property Asset?
Where there is an existing mortgage held against this Property Asset, you will need to add the entire mortgage/balance and repayments, as your applicant is still liable for the full mortgage, even though they 'own' only half the asset.