Hi guys,

i seek help.

My mom took a loan of 10M with family bank some time back to complete her rental units.

Although the loan repays itself regards to the rental units,it however leaves her penniless and she has to really struggle to pay my sisters fees and other home expenses.

I was wondering whether there is an institution,sacco etc that would buy off her loan for much 'friendlier' interest rates.

Pardon me for the mouthful.
help.

Standard Chartered currently have an offer running whereby you can transfer your mortgage to them and enjoy a "low" interest of 16.90%. More here.

What is the interest rate at Family?

The issue I see here is cashflow issue. Go for maina20 option. Negotiate with the bank to extend the repay period so that the repayments amounts reduce OR Ash Ock's transfer to another bank with better rates. Think of non bank institutions that lend to individuals like Shelter Afrique, Private equity.

Option 1 increase the rent by 10-20% not enough to make the tenants move but will increase cash flow
Option 2 Since she took the loan some time back, Get a friendly valuer to revalue the property and seek equity release from family.
Option 3 If they refuse visit HFCK with the new valuation and they will buy it from them and offset the difference.

Thank you guys for your invaluable help on the subject.

@chiraoscuro The interest rates are variable and currently stand at 20%

@Gathige,the flats are built side by side on the parcel that our family home is so including a partner in the issue or selling of the parcel and pocketing the difference is not feasible

@maina20 thank you i will give it a shot and report on the outcome

@digitek1 Greatly appreciated i will advice her to renegotiate and if it fails we will revalue the parcel and talk to HFCK.

Again thank you guys
cheers

how did it go?