Hi all,
my recent acquisition is a 2 x 2 duplex on a 1012m2 allotment, which I intend to strata title. I believe it shouldn't be to much drama as the two units are spaced apart, just sharing a roof, with the space in the middle being outdoor area and they are separately metered.
Just wondering what the finance implications are, considering that the lender holds a mortgage over the property on just one title? The property is financed at just under 97% LVR including capitalised LMI, and I intend to fund the strata titling with savings.
Just thought the finance guys would have come across this before?
You will need to get the lender's permission and cooperation.
Having such a high LVR will mean the mortgage insurer will be involved. What would the approx LVR after strata?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, my conservative estimate is 83% LVR after strata, and as I have taken a fixed rate, cannot pay down the principal to reduce LVR.
As Terry mentioned the lender will need to consent to the change of Title as well as the registration of the mortgage over the new separate Titles.
As long as the lvr is maintained and from what you have stated should be improved there shouldn't be too much of an issue.
I have just written an article on Strata Titling in the API magazine which i think will be out Feb / Mar 2013.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Why are you not putting them on Torrens Titles?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi,I would really appreciate advice. I have a mortgage for my property. 828sqm block with our family home. We are in financial hardship and are thinking of selling rear land approx 220-240sqm. Is this process difficult?
Hi Foo_Cat,
Have a chat to a local draftsperson, they can give you a bit of an idea of what may be possible, normally they'll give your situation 5mins or so of thought for free before proceeding. They should be able to give you a vague idea of costs . Have a chat to council also about what is possible on your block.
You would also need to chat to your accountant to understand the taxation implications.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks guys, Shahin the units share a driveway and carport
You must be logged in to reply to this topic. If you don't have an account, you can register here.
