Dear lawyers and bankers,

I need some enlightenment for my house ownership transfer under love and affection scheme

I sign the S&P agreement for the housing project at Penang on year 2012. The S&P is signed both of my name (50%) and my wife name (50%). The bank loan is only under my name, it is apply from Maybank Home Loan on 2012. I apply loan for 90% of the property price and repayment for 40 years.

The house is completed on year 2015, start collecting the interest from my monthly payment.

Now in 2019, my wife want to transfer her ownership of S&P to me, to let me become 100% owner for the property.

The question here is, is that a must to refinancing just for the sake of property ownership name transfer? I asking the lawyer recommended by the developer, they request me to take refinancing of house loan before can start the love and affection transfer, I not sure how true is this statement.

As if refinancing is required, the monthly repayment for 2015-2019 will be wasted and interest need start calculated again.

I need for your advise on this, if more info is required, please let me know, thank you and have a nice day.

Also, if you have deal with this similar case before and without doing refinancing, please let me know, I'm love to engage with you for the love and affection property ownership transfer.

No need lah. Transfer of ownership and loan is totally different matters. Most likely the lawyer want to earn

U may ask ur current bank in stead of asking lawyer. U can bring ur snp and loan letter offer to the bank and ask their advise whether need to do refinance or no need to do.

This is subject by the bank. The reason being is last time ur charge is under 3rd party charge, coz snp got 2 name but loan is under 1 name. Now ur wife transfer her 100% share to u , then is consider 1st party charge.

So this will affect ur existing loan agreement charge. If let's say in future u want to apply top up loan then can't process.

As long as transfer ownership also need to go through by lawyer.

Yes, transfer ownership definitely need lawyer. But, because of the transfer, you need to apply new loan?? This is first time I heard off

I'm work in bank, I do many refinance case, so I know it. Father transfer to son, divorce case, sibling transfer.

Even transfer ownership, and the initial loan is by the transferee, i.e. the ultimate owner? Lawyer is definitely lah, to transfer the ownership, but, to obtain or refinance the loan due to it?

Sorry, by virtue of you working in bank, I even doubt u more, as you then have conflict of interest in these, coz it mean you have benefits from the loan refinancing.

Just now I already mention clearly, he need to ask his current bank whether need to refinance or not.

I'm not asking him to refinance to my side.ofcoz u can doubt me coz I'm just a people who just passby here. Anyhow I'm not the person who is facing this issue.

Some bank give flexibility to client to obtain the loan whereby some bank are not allow to do so. Some bank only willing to do 1st party Loan , if snp got 2 name both also need to become joint borrower.

Some bank is allow to do 3rd party charge. However, I already mention if he in future he wanna do top up loan, his existing agreement can't be so upstamping and need to redo coz the charge is different.

You are right. Transfer of ownership and Loan is totally different matter.

The reason why there is a need for refinancing is because the property itself has been charged to the Bank with the previous ownership of 50/50 husband and wife. And the loan itself is by the husband.

Since the property is charged to the bank, ANY transfer (including love and affection) is not possible. Unless there are written consent from the bank to allow such transfer, which the loan agreement will be null and void as the basis of the ownership in the property is different from the previous 50/50 to 100% fully owned by the husband.

However, most if not all banks do not allow transfer of any ownership if the property is charged, and require refinancing of property for transfer of ownership.

Thats why there are First Party and Third Party loan in the first place.

Pac Lease am i correct?