Mortgages, Secured Debts - Linking a debt to a property or other asset

When a debt is linked to a property, the debt will end either:

(a) If the property is sold and the debt is paid off automatically using proceeds from the sale of the property or

(b) Once the debt is paid off through regular or lump sum payments, whichever happens first.

 

To link a debt to a property:

1. Go to the Debt screen.

 

2. If you are making changes to an existing debt, select it first in the ledger, right.

 

3. Assets: Click the drop-down list of assets and select the one that is being used to secure this debt.

 

4. Click the adjacent link button to link the asset to the debt.

 

Once clicked, a link icon should appear next the linked property when shown in the list.

 

5. Click Add or Update to save these changes.

A link icon should now appear also next to the property in the ledger, right.

 

You can click this icon to view a list of the items linked to the debt including the property and the debt payment, an expense created automatically by the software that can be managed separately on the Expenses > Basics screen.

The items shown are links. You can click the debt, for example, to jump directly to its details on the Property/Assets screen.

 

 

Time and Ownership - The timing of property linked debts

When a debt is linked to a property, the debt will inherit the start and end events of that property, to indicate that the debt will end if and when the property is sold. These events are greyed out (disabled) and cannot be edited nor should they need to be edited as long as the debt remains linked to a property.

Ownership of the debt will also be inherited from the linked property. The debt will be owned by the owners of the linked property. 

 

 

How to unlink a property from a debt

There should generally be no need to unlink a debt from a property; however, the same procedure would. 

1. Go to the Debt screen.

 

2. Select the debt in the ledger, right.

 

3. Assets: Click the drop-down list of assets and select the linked debt.

 

4. Click the adjacent link button to unlink the asset to the debt.

 

 

Once clicked, the link icon should no longer appear next the property when shown in the list.

 

5. Click Add or Update to save these changes.

The link icon will continue to appear next to the property in the ledger, right, but when clicked it should now only show the linked debt payment. The property should no longer be listed as a linked item.