Hi
I am looking at a property where the vendor has indicated a willingness to vendor finance and they have asked me to suggest how I would like the deal to work. IE What % I need them to leave in, what term of repayment etc.
The property has a commercial component in that it produces an income (Plant Nursery) so I have asked for 30% finance expecting a lender to offer the usual 70%.My questions are: Could I expect the vendor to grant a repayment term of 5 years or longer and what security would be best for the vendor and myself? Also, what structure of repayment should be considered?
The vendor owes nothing on the property. ie they own it freehold.
Thanks
Richard Rees
Tel: 0449131505Richard
The vendor loan will be considered as a 2nd mortgage and i guess the lender will want to secure this against the property.
The property sounds like it could be a specialised security so 70% would probably be the maximum LVR available.
A 5 Year Principal & Interest loan would be common practice in cases like this.
The number of lenders who will allow for the deposit to be borrowed will be limited.
Richard Taylor | Australia's leading private lender
The number of lenders who will allow for the deposit to be borrowed will be limited.[/quote]
Thanks for your comments.
Can you offer any advice as to who those lenders might be?
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