Hi All,
What started as a raise existing property and build a 3 bedroom granny flat for an extra $28 000 gross a year income, has now become a demo and build new.
$270 000 for reno, and then discovered approx $300 000 for demo and rebuild.
Bank, ANZ, happy to loan $270 for reno, but because of demo, and only having value of land to base new build loan on, cannot lend.
NAB same answer.
No problem servicing the loan, between other rental property, expected rental income from downstairs, two wages about $184 000 gross a year.
So looking for a solution to problem, a non conventional lender, or someone with a better idea than I.
Any suggestions?
Cheers
Mark
Mark
I think from your post you are saying that you have demolished the existing dwelling and are wanting to construct a new property on the site and that the current land value isnt sufficient to cover the existing debt.
If i have it right then that will be the case with every lender but if i missed something then feel free to correct me.
CheersYours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Mark
I think from your post you are saying that you have demolished the existing dwelling and are wanting to construct a new property on the site and that the current land value isnt sufficient to cover the existing debt.
If i have it right then that will be the case with every lender but if i missed something then feel free to correct me.
CheersYours in Finance
Hi,
All at the planning stage, at the moment.
Yes, I understand the conventional lenders stance, hence the topic Non Conventional Lender Required.
Does anyone has any ideas to solve the problem???
Cheers
Mark
Have you tried mezzanine finance?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
If you could provide some numbers, LVR and how much savings you have etc might be able to work something out…no promises
Done a loan for a client in a very simliar situation, Client knock down the property and realize 3 month alter the land value is less then they expected + they had no deposit to make up for the short fall or to start the construction.
Approached us; we supplied private finance of $85,000 secured against their 2 cars and had to refinance their loan over to an acceptable lender that was willing to accept non genuine savings construction ( ie the private personal loan) over 80% LVR.
Doesn’t suit everyone as every situation is different.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Jac
Mez wont work as the value of the land is less than the current land loan.
Tmr initial problem is avoiding having the existing lender wanting a cash reduction given that he has breached the Terms of the current mortgage and their security is dimished.
As Michael has said there is often a way as long as the rest of the deal stacks up.
No one said it was going to be cheap but could be done with the right numbers.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Shape wrote:If you could provide some numbers, LVR and how much savings you have etc might be able to work something out…no promisesDone a loan for a client in a very simliar situation, Client knock down the property and realize 3 month alter the land value is less then they expected + they had no deposit to make up for the short fall or to start the construction.
Approached us; we supplied private finance of $85,000 secured against their 2 cars and had to refinance their loan over to an acceptable lender that was willing to accept non genuine savings construction ( ie the private personal loan) over 80% LVR.
Doesn’t suit everyone as every situation is different.
Regards
MichaelHi,
Will email some information to you this weekend.
Cheers
Mark
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