I have heard that you can obtain a mortgage to an LVR of 80% in Sydney Metro without a valuation. Does anyone know if there is any truth to this? And if so what would the conditions be?
The V in LVR stands for value. It’s difficult to for a lender to lend 80% if they do not know what the V is.
Many institutions will however lend 80% of the purchase price of a property. The purchase price may not necessarily equal the Value if they were to do an independent valuation. This is particulary true where there may be rental guarantees etc where the seller has effectively upped the price to cover the guatantee. Or you really have come across a bargin/ discount, maybe settled early to help the seller.Mal
Getting out of your comfort zone, can help you become comfortable
You can get it on purchase price in certain circumstances.
Why are you after this? Knowing your situation might make my advice better.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yes i must admit i am intigued why you would require a loan that you wouldnt want the Bank to value.
Guess i can think of a few reasons but nor necessarily in your best interest.
Many lenders will go to 95% without a valuation and take the contract price if certain conditions are met.
As Simon mentioned more information is required to give an answer.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
The lenders that allow loans without valuations have a few conditions including:
– must be a sale using a registered real estate agent
– must be between two unrelated parties
– they may do a price estimate using RP data or similarso if you are thinking of selling your $200,000 property to your company for $400,000 and getting a loan of $320,000 it may not work.
Terryw
Discover Home Loans
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Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Sorry for the lack of info. in my original post.
I purchase the property in South West Sydney in 2005 for $480k with the intention to re-zone from Residential to High Den Commercial / Residential (which is still in council).
I now need to change the property into a company name to remove a business partner, however the market has now come down since then! I had the property valued last week- Valuation came in at $440k (Mortgage is $435k).
Due to other commitment I do not want to put any further cash into the property and was looking to get a Mortgage to cover the refinance into the companies name, plus S/D.
Any advise????
Hi G
It won’t be easy to get a loan based on valuation as it is a transfer between related parties. In fact, I think it will probably be impossible as your original loan must have been 90% LVR.
Lenders are also aware of the drop in Sydney values, so even if you could find a lender that did not send a valuer out, they would still likely do a comparable sales search.
Sorry for the bad news.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.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
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