Hi all,
I am currently having a unit constructed on the back of my block (dual occ) The bank won't release the funds for the construction loan to the builder as the block isn't yet subdivided (although it is now in the final stages and only a matter of weeks away). The new unit is to be secured by itself (standalone loan) and therefore there is now land to assess into the value until subdision process is complete and it can be valued along with the land it lies on. Confusing, but hopefully this makes sense. At the moment I have paid approx. $30K out of my own money and am now in the process of getting a personal loan for the builders latest progress payment of $35K. I am worried that the builders next progress payment will be required before the subdivision process is complete. This is one hell of a pickle and I would appreciate any help that can be offered.
Hi KPI,
Is there any reason you can not use the whole property as security prior to the sub-division coming through?
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
email: [email protected]Sorry, I failed to mention that the front house is being used to secure a number of other loans. Therefore this is not an option.
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