Hello all, I hope you can assist with this query for me.
I have a client who is wanting to knock down his current house and build two on the land – will subdivide after construction.
The lender (St. George) wants subdivision to be approved prior to construction. It doesnt have to have the sub-division completed until the end of construction however they want it approved.
In WA., to have the sub-division approved means you have to apply for it and this takes approx. 8 months. Which would naturally be easier to apply and have it in process during the construction period. The council has issued a licence to construct 2 units on the one site, but cannot issue anything else unless the client lodges application for sub-division.
WE went to St. George because they said that subdivision didnt have to be done until the end of construction, however, now they are saying that although subdivision does not have to happen until the end of construction, they want it to be approved.
Any idea’s on lenders that would not require the subdivision approval up front – client has been to ANZ and St George.
Relly
Hi Relly,
I am not sure how your client managed to get approval to construct two dwellings without approval for either green title, survey strata or strata subdivision ??
Where did the approval to construct come from ??The last two that I completed in Perth, were for green title subdivision, and it took no longer than 3 months to get the approval back from DPI.
Strata subdivision approval through the local shire is quicker.
Why will it take 8 months in your case ???If subdivision approval will take 8 months, why would you wait till end of construction before going ahead?
Something does not sound quite right from what you are suggesting.
Sorry for all the questions, but from my experience with subdividing and building…it does not seem to make sense.
kp
hi Lorrelle
It doesn’t make sense to me either because the lend, even if one loan is basically split internal within the bank system and until it is sub divided they can’t split it.
I don’t know wa but the process in nsw is (A)land purchase (b)sub division (included in da)(c) da cc (d) constuction and the lending is given in these steps so you would stop at sub division every time.
our sub division and da are done together and the council must approve or decline with 2 months.
decline land and enviroment court ( 2-3 years for hearing)here to help
Exactly Gross!!
The process of subdivision is no different ( even in WA !!)
You can’t go ahead and start a second construction without approval. Approval has to come from the local council. They will not give approval till conditions of subdivision, connection of services, etc, are met.
No approval = no building licence = no construction…kp
Hi grossrealisation,
I hope you don’t mind but could you explain to me what “da cc” is please.
Apologies for my ignorance.Thanks so much.
krs
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